AIReF flags fiscal shortfalls in Canary Islands and slow growth in Galicia

The Independent Fiscal Responsibility Authority (AIReF) released two regional assessments for Spain. In the Canary Islands, AIReF said the 2026‑2027 Economic‑Financial Plan does not contain enough measures to bring public spending back within the fiscal rule. The region exceeded the spending limit in 2025, with a 9.1% rise in computable expenditure versus the 3.2% ceiling, and AIReF projects spending will stay above the limits in 2026 (4.6% vs 3.5%) and 2027 (7.2% vs 4%). The plan foresees a modest deficit of 0.2% and 0.1% of GDP for those years, but AIReF expects higher revenues than the regional government predicts. Proposed savings target the Canary Health Service and the removal of a temporary fuel‑price bonus in 2027.

In a separate AIReF report on economic performance, Galicia’s gross domestic product grew 0.6% quarter‑on‑quarter in Q2 2026 and 2.5% year‑on‑year, lagging behind the national averages of 0.7% and 2.7%. The region ranks among several autonomous communities below the national growth median, while the Balearic Islands posted the strongest quarterly increase at 0.9%.