In Spain, the Sanchez Government Holds On, but Its Future Seems Seriously Compromised

The Spanish economy shows good health, but the Sanchez government is politically weakened.

SUMMARY

The Spanish economy demonstrates sustained growth and stabilized debt, but the Sanchez government faces significant political difficulties that threaten its stability.

KEY HIGHLIGHTS

Economic growth of 2.8% projected for 2025
Minimum wage increased by 61% since 2018
Stabilized public debt
Internal political tensions within the Sanchez government
Political fragility despite strong economic health

CORE SUBJECT

Economic and political situation in Spain

With a growth rate of 2.8% forecast for 2025 (after 3.5% in 2024 and 2.5% in 2023), stabilized public debt, and a 61% increase in the minimum wage since 2018, the Spanish economy shows undeniable good health. The ten-year bond yields have fallen below those demanded by other European countries, a sign of regained market confidence. However, despite these positive economic indicators, the Sanchez government faces major political challenges that seriously jeopardize its future. Internal tensions within the coalition, pressure from opposition parties, and uncertainties related to upcoming electoral deadlines weaken the country's political stability. Thus, while the economy appears robust, the government's fate remains uncertain in a tense political context.

KEYWORDS

Spain economic growth Sanchez government public debt minimum wage

MENTIONED ENTITIES 2

Sanchez government

🏛️ Organization

Spanish government led by Pedro Sanchez

Spain

📍 Location_Country

European country concerned by the article