Spain’s economy minister, Carlos Cuerpo, reaffirmed that meeting the 2024 target of a 3% unified deficit will not be derailed in any way by the 2023 General State Budgets extension. He stressed this during the conference titled “Situation and Outlook of the Spanish Economy,” hosted by the Caixa Foundation Chair on Economics and Society, and featuring the minister as the keynote speaker.
As he had previously indicated, and following last week’s information that the government will work with the 2023 budgets extended into 2025, Cuerpo reiterated that fiscal responsibility remains a non-negotiable pillar for Spain’s economic growth. He emphasized that the 3% deficit goal for 2024 will not be affected by this budgetary choice, describing it as one of the three major economic challenges currently facing the country.
He noted that the perceived impact of budgetary rollover on Spain’s projections is likely to be minimal, and that neither deficit forecasts nor growth forecasts will be altered as a consequence of the extended budgeting process.
Another systemic challenge highlighted was the need to ensure economic security amid shifting geopolitical realities, which requires decisive actions in the job market. He pointed out that there is still a long way to go to reach the ideal of full employment, since the structural unemployment rate remains uncomfortably high compared with other advanced economies.
To address this, the minister urged continued efforts to reduce unemployment while also tackling worker qualification. This involves mapping the talent value chain, identifying skill gaps, and aligning education with market demand to improve the matching of supply and demand in the labor market.
The third challenge centers on modernizing and boosting the competitiveness of Spanish companies and the broader productive fabric. Reform initiatives should extend to corporate productivity, with praise for the recovery plan that supports large-scale projects while also reaching smaller firms through extensive channels.
Asked about how the political climate might influence Spain’s economic performance, the minister defended the idea that both within Spain and across Europe, minority or coalition governments are common. He argued that investors have adapted to a dialogic, negotiative approach and that such context does not deter capital inflows.
He added that this dialogue should be leveraged to advance legislative projects, and he reiterated that investors are showing growing interest in Spain because the country’s accounts align with their expectations.
Among the factors highlighted by the minister as signaling that Spain remains attractive for investment were the education and skills of the workforce, macroeconomic growth forecasts, expected returns, and energy differentials. He concluded that Spain’s situation continues to be favorable for sustained investment inflows, despite political fluctuations and global uncertainties.