Business · Economy · 8 hrs ago
Spain’s strong economy has yet to ease pressure on household budgets
Spain’s economy has grown faster than other major European economies, unemployment has fallen and employment has reached a record level.
Yet households still face rising food, energy and housing costs.
At a forum in Spain, government ministers and an economist from the European Central Bank discussed how economic gains can reach people through jobs, pensions, wages and social support.
Labour Minister Yolanda Díaz and Social Rights Minister Pablo Bustinduy called on companies to raise wages, pointing to record profits and dividends among listed firms in 2025.
Bustinduy also stressed housing costs as a central source of pressure on households.
The debate comes as employers and unions negotiate multi-year workplace agreements, while Spain also faces a general strike and an election that will determine the next government.
Spain’s economy is growing faster than those of other major European economies, but households remain under pressure from rising food, energy and especially housing costs.
Participants at a forum organised by Cinco Días and Prisa Media discussed how economic gains could reach households through pensions, wages, social assistance and housing.
Labour Minister Yolanda Díaz and Social Rights Minister Pablo Bustinduy called on companies to raise wages.
Bustinduy said listed companies made a record €71 billion in profits in 2025 and distributed €29 billion in dividends.
Government minister Elma Saiz said Spain recovered from the pandemic in 15 months and now has more than 22.3 million workers.
- Who
- Spanish households, government ministers and business representatives.
- What
- A forum discussed why strong economic growth has not eased pressure on household budgets and how gains could reach households.
- When
- Thursday; the article was published on 15 October 2026.
- Where
- At the CREO forum organised by Cinco Días and Prisa Media in Spain. The city is not stated.
- Why
- Rising food, energy and housing prices are pressuring households despite strong economic indicators.
This story does not have two clearly opposing sides.
Prime Minister Pedro Sánchez called on companies in Barcelona to raise wages, according to the article.
Listed companies made €71 billion in profits and distributed €29 billion in dividends, Bustinduy said.
The second day of the CREO forum discussed how economic gains could reach households.
- Economic growth
- Spain’s GDP is growing faster than that of other major European economies.
- Workers
- More than 22.3 million
- Recovery after pandemic
- 15 months, according to Elma Saiz
- Listed-company profits
- €71 billion in 2025
- Dividends distributed
- €29 billion in 2025
What people are saying
It could have been another lost decade, but we took only 15 months to recover.
Spain has a challenge: improving wages.
I make an appeal to companies, with all affection, to improve wages.
They have to raise wages, because business margins are at historic highs.