The OECD warns Spain for failing to take measures against corruption

MadridDespite the global economic context marked by uncertainty and modest growth in most wealthy countries, Spain will maintain its momentum in 2025 and It will be one of the fastest growing economiesSince emerging from the Covid-19 pandemic, Spain has registered robust growth in almost all activities and sectors, driven by private household consumption—which remains the engine of the Spanish economy—the strong performance of the labor market, the recovery of the tourism sector, the arrival of European funds, and increased public spending. This is recognized by the Organisation for Economic Co-operation and Development (OECD) in a new report. Economic study of Spain Published this Wednesday. However, it's not all positive. Like any economy, Spain's also has outstanding issues, the OECD points out, including an effective fight against corruption. In Wednesday's report, the international body criticizes the government for not adopting sufficient measures.

In a year marked by the Koldo case, which has since evolved into the Ábalos and Cerdán cases, cornering not only the PSOE (Spanish Socialist Workers' Party) but also construction companies like Acciona; marked by the case of Cristóbal Montoro, former PP (People's Party) minister, which puts lobbyists in the spotlight; and marked by the case implicating Isabel Díaz Ayuso's partner for alleged tax fraud, the OECD points out that, despite progress in the legal framework against corruption, its prevalence "remains high." "Deficiencies persist in the application of anti-corruption laws. It continues to be a problem in Spain," warns the organization chaired by Mathias Cormann. In this regard, the body urges the State to implement the anti-corruption plan that Pedro Sánchez's government announced in the summer, which, among other things, envisioned the creation of a Public Integrity Agency to prosecute any corrupt practices. It also included the "comprehensive" regulation of lobbying activities, the adoption of mechanisms to ensure accountability in corruption investigations, and the full and fair application of the OECD Convention against Corruption.

Fiscal Consolidation and Reforms

However, the 127-page study published by the OECD reviews major economic issues: the state's fiscal sustainability, that is, deficit and debt levels; employment and unemployment rates; the arrival of migrant workers—it highlights that migration has contributed "positively" and accounted for 0.7 percentage points of GDP per capita growth between 2022 and 2024; pension spending and upward pressure on public debt—in this regard, it urges the adoption of measures such as linking benefits to life expectancy; productivity; and the problem of access to housing—it recommends expanding the supply by facilitating land use for construction. Overall, the organization warns that the convergence of tax revenues compared to most wealthy countries remains "limited." It also warns of the rapid aging of the population, still low employment rates compared to neighboring countries, slow productivity growth, and the impact of climate change on the economy.