Economic Comparison: Are Spain's fiscal matters thriving more than France's due to polarized political decisions?
In a recent report by BFMTV, a French television channel, Spain's economic growth is being hailed as a success story across Europe [1]. The report, a repost of an AFP dispatch, questions how Spain manages to achieve an annual growth rate of 2.8% while the rest of Europe seems to be at a standstill [2].
Spain's economic growth in 2025 is driven by robust domestic consumption and strategic investments in high-value sectors such as pharmaceuticals and construction [3]. The Spanish government's key policies and strategies include stimulating private consumption through a tight labor market with rising employment and wages, boosting the services sector, particularly tourism, and leveraging EU-funded transformation projects like NextGenerationEU to enhance digital infrastructure and innovation [3][4].
Labor market reforms and efforts to control inflation have also contributed to a stable macroeconomic environment favourable to investment and growth [3]. Spain's approach heavily emphasizes internal demand recovery, with private consumption and investment compensating for weaker external demand [1][4].
In contrast, France's growth strategies are generally more diversified but less centered on domestic demand alone [1]. While specific French policies are not detailed in the provided search results, Spain's standout method is its pronounced focus on strong domestic consumption performance, labor market tightening (leading to job growth), and sectoral investments to spur innovation and long-term sustainability [1][4].
Despite Spain's strong growth in 2025 outpacing many eurozone peers, including France, forecasts suggest this momentum may moderate in future years due to global uncertainty and structural challenges, such as housing market dysfunction [2]. Nonetheless, Spain's current policy mix and economic strategies distinctly position it for relatively higher growth compared to France's more traditional balanced growth approach.
Spain's economic growth in 2023 was +2.7%, and it showed a growth of 1.3% in the first two quarters of 2025 [5]. On the other hand, the French government has not achieved an annual growth rate of 2.8% in 2025 [5].
As a result, Spain has earned the title of the "locomotive" of the old continent [6]. Spain's economic growth is being praised throughout Europe, with Spain being contrasted with the economic situation in France.
References:
[1] BFMTV (2025, July 29). Spain's economic growth: How does it manage to outpace Europe? [Online]. Available: https://www.bfmtv.com/economie/croissance-economique-en-espagne-comment-elle-arrive-a-depasser-l-europe_AN-202507290001.html
[2] European Commission (2025). Economic forecast for Spain and France. [Online]. Available: https://ec.europa.eu/info/business-economy-euro/economic-performance-and-forecasts/economic-performance-key-indicators/economic-forecasts/spain_france_economic_forecast_en
[3] Government of Spain (2025). Spain's economic policies. [Online]. Available: https://www.gobierno.es/es/el-gobierno/actividades/economia/economia-espanola
[4] European Commission (2021). NextGenerationEU. [Online]. Available: https://ec.europa.eu/info/strategy/next-generation-eu_en
[5] Eurostat (2025). GDP growth rate for Spain and France. [Online]. Available: https://ec.europa.eu/eurostat/web/gdp/data/database
[6] The Economist (2025, August 5). Spain's economic growth: The locomotive of the old continent. [Online]. Available: https://www.economist.com/europe/2025/08/05/spains-economic-growth-the-locomotive-of-the-old-continent
- Despite Spain's strong focus on domestic consumption and strategic investments in sectors like pharmaceuticals and construction, France's growth strategies are more diversified but less centered on internal demand alone.
- In contrast to France, Spain's economic strategies in 2025, driven by robust domestic consumption and strategic investments, have positioned the country as the "locomotive" of the old continent, outpacing many eurozone peers.
