Spain is Doing Well… Spaniards, Not So Much

The returm of migration to SpainThe shift in the migration flows of foreigners seems to be related to Spain's economic outlook improvement

Fernando González Urbaneja | “Spain is doing well” was the slogan that President Aznar used to characterize his eight-year term (1996-2004), spanning the turn of the century. The data supported his claim. Pedro Sánchez now resurrects Aznar’s proposition and insists in all his speeches that Spanish society is better off today than when he took office in mid-2018. Some data supports his thesis, while others contradict it.

The Spanish economy is growing more than the average of its direct competitors, ranking among the highest-growing economies in the EU, especially after the pandemic slump, which hit us harder than other Europeans. Spain is experiencing sustained growth, exceeding forecasts, based on a significant increase in the resident population (migrants), an unrepentant rise in public debt, and excellent performance in tourism and exports.

In the shadows, among other references, lie the stagnation of productivity and per capita income; rising inequality in parallel with increasing tax pressure, despite the social policy the government boasts about; a breakdown of the social elevator for new generations, especially those born since the late 80s (Millennials), burdened by housing prices (both ownership and rent) and chronic labor precariousness.

This month, we learned about three serious studies that demonstrate that Spaniards are not doing as well as Spain is, and these reports have not been given any consideration by official spokespersons, who are intent on a narrative about how well they are performing.

The first is from Caritas (Foessa Report), a veteran, serious, and in-depth study titled “On Exclusion and Social Development.” It highlights the growth of exclusion, the emergence of a dual society (the established versus the excluded), the narrowing of the middle class, and the generational gap that runs parallel to the weakening of community ties.

The second was prepared by Fedea on the evolution of family wealth between 2002 and 2020, which evidences the growth of inequalities. An eloquent fact: the wealthiest 1%, those who accumulate the most, hold 21% of the assets, compared to the 13% they held twenty years ago, which suggests that there are more rich people, but only a few of them. The report also detects the generational gap.

The third study, sponsored by Fedea and the College of Economists, analyzes the performance of the Minimum Living Income (Ingreso Mínimo Vital), the government’s flagship measure to combat poverty. The study praises the law but points out that the requirements for accessing this resource should be made more flexible, as it only reaches half of the target population.

The studies are conclusive, demanding urgent debate and decisions, but these issues are far from the concerns of parliamentarians and our leaders, who are exclusively dedicated to maintaining/achieving power, without addressing society’s concerns and problems. They are detached from the “common good,” a concept emphasized in the Caritas/Foessa report. This is not the best moment in Spain’s recent history; there are reasons that explain this, but also inattention that emphasizes it.

About the Author

Fernando Gonzalez Urbaneja
Over 30 years working in economic journalism. Fernando was founder and chief-editor at El País, general editor at the business daily Cinco Días, and now teaches at Universidad Carlos III. He's been president of the Madrid Press Association and the Spanish Federation of Press Associations. He's also member of the Spanish press complaints commission.