Spain is the focus of a recent Eurobarometer that reveals alarming results regarding citizens’ trust in their government and public institutions. According to the latest survey, the Southern European country is the European nation where citizens distrust their government the most. These findings are part of a comprehensive working document from the European Union in Brussels, which adds a series of recommendations to Spain in the areas of economic, social, employment, structural, and fiscal policy.
Low Trust in Public Institutions: Spain in EU Comparison
Spaniards’ trust in their public institutions is significantly below the European Union average. The central administration performs particularly poorly. A survey shows that 57% of respondents criticize the lack of transparency in political decisions and the use of public funds by the Spanish central administration. The EU average is only 44%.
Furthermore, 55% of Spaniards demand less bureaucracy in the administration, compared to 52% in the European average. The desire for greater interaction between citizens and the administration is also more pronounced in Spain at 35% than in the EU average (28%). These results, published in a rather unusually open document by the European Commission, suggest according to Brussels sources that “the government of Pedro Sánchez is about to end and they have lost their fear of it.”
Brussels’ Displeasure Over Spain’s Hesitation on Defense Spending
Other sources from Belgium emphasize the Commission’s annoyance that Spain has not activated the national escape clause. This clause would have allowed for an increase in defense spending, which would have raised Spain’s expenditures to 650 billion euros, as proposed by the EU executive in the context of the rearmament plan. Neither Spain, nor France, nor Italy, have invoked this clause, leading to lower expenditures.
This circumstance has apparently led to the loss of favor of Paolo Gentiloni, the socialist Commissioner for Economy. The appointment of further Commissioners, such as the Vice-President of the European Commission, Raffaele Fitto, proposed by Giorgia Meloni, could further change the dynamic.
Pension Reform and Sustainability: A Pressing Warning
The Commission increasingly views the Spanish government as “something done.” A clear sign of this is the current development surrounding the pension reform. The Ministry of Inclusion, Social Security and Migration recently admitted to having drafted a bill to reform the Royal Decree of February 18. This decree regulated the assessment of the pension system by the Independent Authority for Fiscal Responsibility (AIReF) in case additional revenue measures were required.
This change of course is a direct response to pressure from Brussels, after AIReF had already published a report questioning the sustainability of the pension system. MEP Fernando Navarrete (EPP) then informed the Vice-Presidents of the European Commission, Valdis Dombrovskis and Raffaele Fitto, that AIReF was “forced to publish a second report – in addition to the one referring to the expenditure rule – to be able to give a real and independent assessment of the situation.” The forecast of public debt reaching 181% in 2070 undermines the sustainability of public administrations, especially since the balance of the pension system was not explicitly listed in the Bank of Spain’s last annual report, although it is a priority element of the NextGenerationEU funds.
Spain’s Regulatory Excesses Under the EU’s Scrutiny
The Commission’s semi-annual report also examines the development and evaluation of legislation in Spain. Although Spain is close to the EU average here and has made progress, it still lags behind other European partners. This is attributed to “weaker requirements for methodology, systematic introduction, monitoring, and quality controls.”
Despite Spain’s efforts to strengthen policy evaluation, improve the institutional framework, and establish a competence framework for evaluating public policies as part of its Recovery and Resilience Plan, the planned Agency for the Evaluation of Public Policy has not yet been put into operation.
Furthermore, the Commission criticizes the extent of regulations in Spain, which has increased exceptionally in recent years, particularly due to the effects of COVID-19. In 2022 alone, the Spanish administration enacted 11,775 new rules, which has a negative impact on businesses, according to Brussels.
