The Government of Spain bases the Treasury strategy on prudence and flexibility to meet the needs of the DANA

Moncloa Palace, Madrid

The Government Spokesperson, Pilar Alegría, together with the Minister for Territorial Policy and Democratic Memory, Ángel Víctor Torres, and the Minister fot Economy, Trade and Business, Carlos Cuerpo (Pool Moncloa / Jose Manuel Álvarez)

The Minister for Economy, Trade and Business, Carlos Cuerpo, has informed the Council of Ministers of the Public Treasury Financing Strategy in 2025, "which is based on solid growth and a prudent financial policy." Strengthening the sustainability of Spain's public debt is, according to Cuerpo, the main goal of this strategy.

The Economy Minister pointed out that the Spanish economy is exceeding "all expectations, with positive surprises on a continuous basis." Compared to the initial forecast for 2024 of growth of around 1.5%, analysts now expect growth to reach - or even slightly exceed - 3%. The European Commission and other bodies also expect Spain to continue to lead growth in the eurozone in 2025 and 2026.

Carlos Cuerpo also stressed that the Spanish model is characterised by balance, with record figures for exports and international investment, decarbonisation as a fundamental element of competitiveness, the creation of stable and higher quality employment, a progressive moderation of inflation and the reduction of inequalities. "And all of this without renouncing fiscal responsibility," the minister said. In particular, the weight of public debt relative to gross domestic product (GDP) has fallen by more than 20 percentage points since the post-pandemic peak. And if at the end of 2024 it stands at 102.5% of GDP, the Executive estimates that this year it will fall to 101.4%.

The sustainability of the model - the minister added - is reflected in the good performance of the Treasury's debt issues in financial markets and the confidence of international investors. The risk premium reduced by more than 30 basis points in 2024 to around 70 basis points, "significantly below the pre-pandemic situation."

Responding to the needs arising from the DANA

The Minister for Economy, Trade and Business, Carlos Cuerpo, during his speech at the press conference after the Council of Ministers | Pool Moncloa /Borja Puig de la Bellacasa

Carlos Cuerpo has detailed that debt issues in gross terms will reach 278 billion euros in 2025, representing 16.7% of GDP, down from 18% in 2018. In net terms, i.e. subtracting the debt issued to offset redemptions during the year, the figure will be around 60 billion euros. This is slightly higher than last year's amount, an increase that the minister attributed to the objective of having "sufficient flexibility to respond to the reconstruction and relaunching needs generated by the DANA catastrophe."

With regard to aid for those affected, the minister indicated that 1.162 billion euros has already been paid out. In the case of the Insurance Compensation Consortium, more than 831 million euros has been paid for the compensation of more than 65,000 claims. Carlos Cuerpo also pointed out that compensation payments have accelerated in the last three weeks and are concentrated in the most affected municipalities: Paiporta, Catarroja, Algemesí, Aldaia and Alfafar. In addition, the owners of more than 45,000 vehicles have been compensated, with an average amount of more than 8,700 euros.

Prudence and sustainability

The Minister for Economy, Trade and Business stressed two elements of prudence in the Treasury's strategy. On one hand, the lengthening of the average debt maturity, which helps to assimilate the European Central Bank's interest rate hikes. On the other hand, the diversification of the investor base, which has allowed the percentage of non-resident investors to remain above 44% in 2024. These trends have been achieved despite the fact that the European Central Bank is phasing out its purchases of government debt across the eurozone, demonstrating confidence in the Treasury's financial policy, according to Carlos Cuerpo.

The press room after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

In 2025, the Treasury will also continue to finance projects that contribute to the decarbonisation of the Spanish economy. The "green bonds" in circulation already exceed 15 billion euros, which "contribute to the green transition of our country, which, as we know and as has unfortunately become clear, is increasingly important," according to the Economy Minister.

The financing strategy, in short, will allow Spain "to have solid access to the markets, reduce interest costs, cushion the rise in European Central Bank rates and, furthermore, maintain the high confidence of foreign and domestic investors in the Spanish economy and in the mission of the Treasury itself."

Celebrating 50 years of freedom

The Council of Ministers has adopted several agreements related to the events to commemorate 50 years in freedom to be held during 2025.

Firstly, the Executive has established the Commissioner for the commemoration and has placed historian Carmina Gustrán at the head of this body. The Minister for Territorial Policy and Democratic Memory, Ángel Víctor Torres, explained that Gustrán is an expert on contemporary Spain, has worked with various universities in Spain and abroad and has experience in cultural management with different administrations, such as Madrid City Council and the Ministry of Culture during Mariano Rajoy's government. The minister also noted that a scientific committee will advise the Commissioner.

In addition, the Government has set up an inter-ministerial commission to coordinate the work of the different ministries in the commemoration events.

The Minister for Territorial Policy and Democratic Memory, Ángel Víctor Torres, at the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

Ángel Víctor Torres announced that the president of the Government of Spain will preside over the launch of the celebration programme on 8 January at the Reina Sofía Museum, which will include exhibitions, conferences and cultural and participatory activities, among other initiatives. The goal, he said, is to unite all democrats in defence of "50 years of freedom against 40 years of totalitarianism, dictatorship and darkness."

The Minister for Territorial Policy and Democratic Memory argued that it is not a question of celebrating "the death of anyone", but "it is true that the death of the dictator brought with it a transition that culminated in a period of splendour of 50 years of democracy." The commemoration of this "collective success" seeks to celebrate "the Spain that we are," to pay tribute to all the people who have made it possible and to convey to society, especially to young people, the need to defend democracy.

The minister recalled the progress made in recent decades in areas such as elections, freedoms of expression, association and assembly, and the rights of women and homosexuals. Ángel Víctor Torres advocated the objective dissemination of these facts "so that we can celebrate the end of fear, which was what happened with the death of the dictator, and the beginning of hope, which was what was sown to achieve this Spain of democracy and freedom for everyone today."

2025, Year of the Roma in Spain

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, has announced the approval of an institutional declaration on the occasion of the 600th anniversary of the arrival of the Roma people in Spain, as well as establishing 2025 as the Year of the Roma.

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, during her speech at the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

"In 2025 we will commemorate the cultural, social and also linguistic imprint that the Roma people have brought to Spain," said Alegría with regard to the celebration of the entry of the Roma people into the Iberian Peninsula on 12 January 1425.

Economic and labour market strength

The Government spokesperson highlighted the positive assessment of the economic situation made at the first Council of Ministers meeting of the year. "In 2024, Spain closed very positive economic data, as the engine of the economic locomotive of Europe, and the forecast for 2025 is that this same path will continue," said Pilar Alegría.

Among the economic data for the closing and opening of the year, the Government spokesperson mentioned the creation of half a million jobs. The figure "means that we have been creating jobs for exactly 56 consecutive months in Spain." This brings the total number of Social Security contributors to 21,300,000.

These strong figures, both in the employment market and in the economy, will allow the Government, said Alegría, to maintain its objectives of "stable and strong growth in 2025 and, above all, to increase and consolidate the rights of our country's citizens."

Non official translation