Department of Economic Promotion and Local Development

This Tuesday, an unprecedented €3 million grant for the support of senior residences was announced, adding to the €20 million from the Public Works and Services Plan and €6 million for sports facilities.

The Consell de Mallorca will allocate more than €70 million to municipalities across the island in 2025—a record investment that strengthens the economic support initiated in this legislature. This funding is aimed at improving municipal services and covering the costs of executing projects in areas such as culture, tourism, economic promotion, sports, and social services, among others.

During the fourth Assembly of Mayors of the current term, held at the Palmanova hall in Calvià, the President of the Consell de Mallorca, Llorenç Galmés, along with the Minister of Economic Promotion and Local Development, Pilar Amate, outlined the various funding lines available to local authorities as part of the island government’s investment and aid plan to boost local economies.

Galmés Presents Mayors with Record Investment Exceeding €70 Million for Municipalities in 2025

“These contributions represent cross-cutting support to our municipalities, covering everything from the improvement of cultural spaces and the maintenance of senior residences to the promotion of local tourism and proximity-based products,” said President Galmés. He expressed confidence that “concrete initiatives like these translate into a better quality of life for residents.”

Investment Breakdown by Department

One major new initiative, published this Tuesday in the Official Gazette of the Balearic Islands (BOIB), is a €3 million grant to support the operation of municipally owned senior residences, launched for the first time by the IMAS (Mallorcan Institute of Social Affairs). This is in addition to €18.8 million already allocated to local social services.

The Department of Culture has increased its budget for municipalities by €700,000, bringing the total to €4 million for 2025.

The Tourism Department has, for the first time in this legislature, awarded €497,536 in grants to Mallorca’s municipalities to modernise tourism services, promoting better coexistence between residents and visitors.

The Department of Finance and Public Administration will also allocate €2 million for the purchase of emergency vehicles for each municipality, sourced from budget surpluses from 2024.

The Departments of Environment, Rural Affairs and Sports have committed €6 million to creating and improving the island’s sports facilities—part of a biennial budget allocation of €12 million for 2024–2025.

The institution continues to support youth-related projects with €600,000 in subsidies, also published in the BOIB.

43% Increase in Local Product Promotion Aid

This year, the Department of Economic Promotion and Local Development will launch a new €1.2 million call for projects focused on electronic administration. It has also increased aid for local entities promoting Mallorca’s local products and economy. These grants will rise from €700,000 last year to €1 million in 2025.

Minister Pilar Amate highlighted this increase in support for municipalities: “It is a clear commitment to being alongside local governments, giving them the tools they need to respond to their challenges and provide better services to citizens.”

She also recalled additional major funding streams: the Public Works and Services Plan (doubled from €10 million to €20 million annually during this term), the Sustainable Energy and Climate Action Plan (€3 million per year), and the Water Cycle Program, which will again receive €5 million in 2025 from the island government.

Mayors’ Assembly

At the Assembly, Minister Amate briefed municipal representatives on the new restructuring of her department and modifications to the Assembly’s operating regulations. She announced the creation of a new Directorate for Municipal IT Services, aimed at strengthening municipal digital services and addressing digital transformation and cybersecurity challenges.

During the motions section, Amate reiterated her department’s commitment to supporting the development of local economies, stating that she remains open to hearing and responding to all proposals, requests, and suggestions from the municipalities.