Spain faces institutional stability and budget challenges

Spain is facing challenges regarding institutional stability and competitiveness. Key issues include the difficulty in reaching agreements and the continued extension of the General State Budgets, which hinders effective planning and decision-making.

Concerns have also been raised regarding institutional quality, the independence of institutions, the separation of powers, border management, and increasing political polarization. These factors impact legal certainty and the environment for investment and employment. Additionally, the Balearic Islands face specific responsibilities regarding housing, infrastructure, productivity, and economic diversification.