The business climate in Spain is reaching a boiling point. An overwhelming majority—over 91% of local companies—believe that government intervention in their activities is excessive. This staggering figure reflects deep dissatisfaction within the business community, which also points to inefficient public spending and growing legal insecurity. Entrepreneurs are voicing concerns about the deterioration of government institutions and a lack of transparency in key state decision-making, creating an atmosphere of uncertainty.
Against this backdrop of internal issues, there are calls for changes in economic policy. Business leaders insist on the need to lower interest rates to manage the enormous level of global debt. In their view, the cheaper the borrowed funds, the easier it will be to service debt obligations. Additionally, there is ongoing discussion about the importance of closer integration within the European Union, even moving towards pragmatic federalism as a way to boost overall competitiveness and address labor market challenges.
Fiscal pressure is another pain point for Spanish companies. Around 80% of entrepreneurs believe that the current tax burden seriously harms their competitiveness on the international stage. As top priorities, they suggest introducing tax incentives for investment—an initiative supported by more than 72% of those surveyed—and reducing employers’ social security contributions, a measure backed by 65%.
Despite a projected GDP growth of about 3% this year, driven by external demand and a growing population, experts warn that export trends could change. Against this backdrop, longstanding issues remain acute: Spain continues to lead the major EU economies in youth unemployment (23.1%), and is among the most indebted countries, with a debt of 1.69 trillion euros. Business leaders emphasize that it is entrepreneurs—not government policy—who are the main drivers of economic growth.
There is also criticism directed at the European ‘Next Generation’ funds. More than 75% of business owners rate the management of these funds as poor or very poor. It was revealed that 60% of companies have not even tried to access this funding due to bureaucratic hurdles and limited eligibility for certain sectors. Entrepreneurs complain that these funds are failing in their main mission—they do not help modernize the country’s production model. Additional concern stems from the fact that the country has now gone three years without an approved budget, which will inevitably slow down business activity.
Aside from taxes, companies cite high labor costs and administrative barriers as the main obstacles to doing business. Nearly three out of four entrepreneurs consider the regulatory environment to be the biggest drag on growth. Nevertheless, businesses remain optimistic about the future, linking it to technology. Ninety percent believe that artificial intelligence boosts efficiency, and more than half plan to increase investment in digitalization and cybersecurity. However, investment in environmental projects is still moving at a much slower pace.
