SPAIN: Catalan Debt & more – 9th Jan 2025

Buenos días from Gracia! This is the Rorshok Spain Update from the 9th of January twenty twenty-five. A quick summary of what's going down in Spain.

Happy New Year! We hope that everyone listening had a wonderful time, and are ready to jump back in!

Let’s start twenty twenty-five by heading over to Catalunya. On Tuesday, the 7th, Catalunya’s government, led by President Salvador Illa, sought support from employers and unions to demand Spain forgive 20% of its seventy-five billion euro debt through the Autonomous Liquidity Fund.

The Catalan Party Esquerra demanded this billion-euro write-off as a key condition for supporting Pedro Sánchez's bid for Spain's presidency in November twenty twenty-three.

Sílvia Paneque, a government spokesperson, emphasized the need for consensus from economic and social agencies, before moving forward. However, forgiving the debt would save Catalunya nearly a quarter of a million in interest in twenty twenty-five.

Speaking of money, the Balearic Islands, in the east of mainland Spain, ended twenty twenty-four as the country’s top region for job creation, achieving over 3% employment growth— above the national average of around 2.5% in twenty twenty-four.

On the last day of last year, social security membership hit well over 400,000, an increase of over 3% compared to twenty twenty-three, and unemployment also fell significantly, dropping from around 8% in twenty twenty-three to a historic low of 5%.

Even though things look bright in the Balearics, the government is getting into debt. Spain plans to issue sixty billion euros in net debt this year, up from fifty-five billion euros in twenty twenty-four.

Carlos Cuerpo, the Economy Minister, announced on the 7th of January that total debt will rise to €278 billion, compared to €257 billion last year, equaling 17% of the GDP.

The increased borrowing aims to provide flexibility for reconstruction after the devastating floods last October, which killed 224 people.

Despite higher debt, Spain expects its debt-to-GDP ratio to drop, which means that its economy should, overall, not suffer.

In diplomatic news, on Thursday, the 2nd, Spain and Morocco failed to open important customs centers in the autonomous cities of Ceuta and Melilla on the northern coast of Africa due to unresolved technical issues.

The customs agreement stems from a twenty twenty-two deal made by President Pedro Sánchez, and aims to regulate trade and curb smuggling. Once the mishaps are sorted out, Ceuta will have a customs facility for the first time in its history, while Melilla's disbanded post from twenty eighteen will reopen.

Despite the plans, local officials fear the agreement gives Morocco economic leverage. Juan José Imbroda, Melilla's president, called the deal one-sided, citing restrictions on local exports. Opposition parties suspect Morocco seeks to undermine local commerce, while Melilla says it will take legal action.

As we start twenty twenty-five, the local government of Galicia confirmed that over sixty new wind farm projects were stalled on Tuesday the 7th due to controversial court rulings and new legislation.

The Superior Court of Justice of Galicia has suspended sixty-two of sixty-seven projects, citing potential irreversible environmental harm. This decision contrasts stances in different regions in Spain that say that the net benefit of wind projects is better for the environment.

Public opposition has also fueled protests and legal challenges against the wind farms. Local environmental groups are petitioning for and against the government's decision.

Sánchez announced a year-long series of events commemorating fifty years since the death of Dictator Francisco Franco in nineteen seventy-five.

Speaking at Madrid’s Reina Sofia Museum under the slogan Spain at Liberty, Sánchez celebrated Spain’s transition to democracy but warned of the growing influence of far-right ideologies across Europe.

The events, highlighting Spain’s transformation since its first democratic elections in nineteen seventy-seven, have sparked controversy. The conservative People’s Party or PP and far-right Vox refused to participate, accusing the government of dividing Spanish people.

Next up. Mental well-being is an important topic all year round, but as we go into the new year, we wanted to highlight the importance of looking after your mental health, especially in stressful situations with our next story. In December last year, news outlet El Pais reported that leading Spanish politicians, including Yolanda Díaz of Sumar, Juan Manuel Moreno of the PP, and Idoia Mendia of the Socialist Party, practice mindfulness to manage political stress and promote more cooperative attitudes.

Amid increasing political tension and social media-fueled conflicts, these figures incorporate daily meditation and breathing exercises to focus on the present moment, reduce stress, and maintain mental clarity.

Moreno, for example, recommended meditation to the Andalusian parliamentarians in July twenty twenty-four to foster calm in their political duties. According to El Pais, mindfulness has gained global popularity in recent years in Spain, especially among politicians.

Now for something interesting. A while ago, we spoke about wolves in Spain, and here’s an update. Spanish farmers have demanded immediate wolf culling as EU protections weaken.

In early December, the Bern Convention, a generalized set of guidelines laid out by the EU, downgraded grey wolves from strictly protected status to protected status, effective from March twenty twenty-five. Spanish farmers are demanding the government adopt these guidelines.

Spain listed wolves as Specially Protected in twenty twenty-one, and since then attacks on livestock have surged, with over 8,000 incidents currently reported. Farmers in Castilla y León, home to 60% of Spain’s wolf population, lead calls to delist wolves altogether.

The Royal Spanish Hunting Federation urges Spain to align with Europe’s relaxed stance, arguing policies prioritize politics over science and evidence.

The new year often means people turn to diets, but how about turning to burgers instead? In Portugal, Lisbon’s fast-food scene is heating up as hugely popular Spanish burger giants Goiko and Vicio prepare to debut in early twenty twenty-five, joining the North American chain Five Guys.

Vicio plans to launch with delivery-only services before opening physical locations while Goiko aims to open its first Lisbon location by February or March twenty twenty-five.

On another note, workers in Spain will enjoy up to fourteen public holidays in twenty twenty-five, nine of which are national.

Notable holidays include Balearic Islands Day on the 1st of March, Holy Week on the 18th of April, and Labor Day on the 1st of May. December twenty twenty-five will bring its usual festive holidays, and regions across Spain will have their own days that celebrate its rich culture.

If you live in Spain, we recommend you take a look at your year and make the most of your time off from the daily grind!

Check out the national holiday calendar with the link in show notes.

Talking about holidays, this week Spain celebrated Three Kings Day, traditionally commemorating the visit from the Three Wise Men to baby Jesus, the holiday where children receive gifts and the country takes a day off. However, it didn’t happen without disruption.

Severe weather forecasts for this week prompted several towns in Spain to reschedule their traditional Three Kings parades.

For instance, Málaga, on the southern coast, posponed its vibrant and extravagant parade until Sunday the 12th.

Let’s end with a little bit of interesting local history. In Extremadura in the west, the Ermita de San Jorge, a 14th-century chapel near Cáceres, which is close to the Portuguese border, is finally being restored after decades of neglect and several years on the endangered heritage red list compiled by the non-profit organization Hispania Nostra.

In November twenty twenty-four, the Extremaduran government launched emergency works, pledging nearly 400,000 euros to stabilize its crumbling structure and preserve 16th-century frescoes painted by Juan de Ribera, an influential 16th-century Spanish author, in fifteen sixty-five.

Over the years, the chapel has suffered severe water damage, eroding its historical artwork. Experts celebrate the intervention, calling it vital to saving this paradise of peace.

Aaand that’s it for this week! Thank you for joining us!

Thanks for sticking around for this episode of the Rorshok Spain update! Thank you for your support, shares, and feedback. Got ideas, suggestions, or just want to say hi? Just drop us a line at info@rorshok.com.

Here’s to another year of keeping you on the loop with what's going down in Spain. Happy twenty twenty-five!

¡Hasta la próxima!