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The Balearic Islands vote against the spending rule proposed by the Spanish Government

Jul 7, 2026 | Actualidad, Current affairs, Featured, Interview, Portada, Post, Revista Lloseta, Thursday Daily Bulletin, Tradition

The Government of the Balearic Islands has voted against the 4% spending rule proposed by the Spanish Government during the meeting of the Fiscal and Financial Policy Council held in Madrid. The regional administration considers that the proposed limit does not reflect the real funding needs required to maintain essential public services.

First Vice President and Regional Minister for Economy, Finance and Innovation Antoni Costa stated that the increase in expenditure required for areas such as healthcare, education, dependency services and public sector salaries exceeds the margin allowed under the proposed spending rule. He noted that the planned salary increase for public employees in 2027 is already higher than the proposed expenditure limit.

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The Balearic Islands vote against the spending rule proposed by the Spanish Government

Costa also argued that the Balearic Islands comfortably meet the deficit and debt targets established by the Ministry of Finance, not only for the current year but also for the coming years. He highlighted that the region has reduced its public debt by more than €500 million over the past two years and currently maintains a debt-to-GDP ratio below the objectives set by the central government.

The First Vice President further pointed out that the Balearic Islands have recorded budget surpluses for three consecutive years. According to the regional government, this financial performance has enabled tax reductions, increased public investment and access to more favourable financing conditions, generating savings on interest payments.

During the meeting of the Fiscal and Financial Policy Council, the Balearic Government maintained that the proposed spending rule unnecessarily restricts the region’s ability to strengthen essential public services despite its positive fiscal performance. Costa also expressed criticism of the Spanish Government’s economic approach and defended greater flexibility for financially compliant autonomous communities.