Spain is grappling with a severe infrastructure investment deficit. This has been acknowledged by the Ministry of Transport itself and is confirmed by every report published on the matter. The latest, from the Institute of Economic Studies (IEE), asserts that between 2019 and 2024—coinciding with Pedro Sánchez’s arrival in government—the average annual investment deficit (both public and private) in infrastructure stands at €19 billion.
According to the CEOE employers’ association think tank, this deficit is most visible in the public sector, as government investment represents 2.7% of GDP, one of the lowest ratios in Europe. The European Union average stands at 3.4% of GDP. In economic terms, the lower investment effort by public administrations results in an approximate average deficit of €10.5 billion per year, a figure that has reached even higher values in recent years, according to the IEE.
“The reality is that there has been an increase of €150 billion in State revenue since 2019, but not only has infrastructure not been increased, a significant percentage has been degraded, and we have been without a budget for four years. Much more could have been done than what has been achieved; it is clear that investment has not been anywhere near a priority,” argued the president of the IEE, Íñigo Fernández de Mesa.
In 2024, investment in public infrastructure stood at around €13 billion, a figure still far below the peaks reached in the previous decade. The IEE adds that the weakness in investment is “especially significant when compared to the evolution of the Spanish economy as a whole”: In 2024, GDP was approximately 23% above the level recorded in 2012, while infrastructure investment remained around 13% lower than in that same year. “This contrast highlights that, during the economic recovery process, infrastructure investment has not regained the prominence it held in previous stages.”
