Prepared by a group of renowned economists, the Fènix Report is undoubtedly a relevant contribution to public discourse. Those who shape—and we shape—opinion in the media often attribute a large part of the problems we have as a society to something called the economic model, and not infrequently we write or say that a change, or changes, in this model is necessary. Well, the Fènix Report presents a sound, rigorous, and straightforward exploration and diagnosis of the economic model in force in Catalonia during the first quarter of the 21st century. From 2000 to 2025, Catalonia has only lost sheets (GDP points) with each wash, meaning: in comparisons with regions in Europe, or America, with which Catalonia traditionally used to compete or be reflected, and which allowed for complacent or triumphalist expressions of the type “Catalonia, the Bavaria of Southern Europe” or “Catalonia, the European Massachusetts”. This kind of effusion has long since gone out of style, and in its place a chorus of resentful and phantom voices is heard preaching nationalist retreats or, directly, hate speech directed very especially against immigration. Indeed, the migratory flows that have arrived in Catalonia have only grown during these twenty-five years, and have led to a profound demographic transformation, summarized in the transition from Catalonia of six million to that of eight million inhabitants (the Fènix Report incorporates the forecast of ten million by 2050). It is no coincidence that, from the year 2000 until now, Catalonia, and especially Barcelona, has made its economy increasingly dependent on mass tourism and real estate speculation, two phenomena closely linked, often in the form of cause and effect. In these aspects, it can be said that Catalonia —especially Barcelona— has become Balearized, given that the Balearic Islands are, unfortunately, a benchmark in this economic model focused on low-productivity activities, unskilled labor, and low wages, on which the Fènix focuses. And it is true, as its authors indicate, that workers with excessively low wages do not contribute enough to cover the services they will use throughout their lives, thus “contributing” to the deterioration of the economic fabric and the impoverishment of the country as a whole.

After decades dedicated to politics, the former Prime Minister of Luxembourg and then President of the European Commission, Jean-Claude Juncker, delivered the best sentence of his life: "We all know what needs to be done, what we don't know is how to get re-elected once we have done it" (2007). The difference between knowing and doing, or between diagnosis and solution. And here we are, in the permanent struggle between what knowledge tells us, what the quality of public debate is capable of agreeing upon, and what is politically executed. We are talking about democratic politics, of course, which has many more limitations than autocratic regimes, which in the same way that they approve a five-year plan, make a minister disappear or make a dissident fly out of a window.

The Nobel laureate in economics Paul Krugman very well described the importance of an economic variable that is fundamental, although it may be unknown to most citizens. "Productivity is not everything, but in the long run, it is almost everything," he said. The fact is that growing is one thing, and progressing or prospering is another. Or, more simply, volume or quantity is one thing – gross domestic product (GDP) is increasing and in Catalonia it has already exceeded 300 billion euros – and quality is another, that is, how this pie is distributed among all those who live in a given economy.

A harsh report on the state of the Catalan economy, prepared by several economists, criticizes the country's productive structure because several business sectors end up being, de facto, "highly subsidized" by the rest of the economic fabric. This current model has represented an "impoverishment" of Catalan society and a continuous loss of productivity of the business fabric compared to Europe in the last 25 years. "The country is bleeding out," summarized the report's coordinator, executive and engineer Xavier Roig.

Economic prospects are still favorable. Despite the setback of the last EPA, with a sudden and high increase in unemployment that returns us to the leadership in this scourge in the developed world, Catalonia continues to grow, and above its surroundings. But tailwinds are no guarantee of progress. The risk is having consumed very good years with too much complacency and not having done our homework well enough. Perhaps because some debates are too uncomfortable, but sooner or later we will have to face them: working or not working, rights or duties, higher wages or productivity, technology or employment.

When he was the European Union's top diplomat, Josep Borrell described Europe as "a garden," in contrast to the "jungle" that is much of the rest of the world. On paper, this supposed garden is based on the security and capacity for citizens to progress economically and materially, guaranteed by a strong state that redistributes wealth through taxes, but above all through basic services. In other words, the defining element of European progress is the so-called welfare state. Despite Borrell's positive words, the viability of this welfare state is being questioned across the continent, doubts that also affect Catalonia and Spain. What future, then, does the welfare state system, on which the Catalan economy is based and on which millions of people depend to a greater or lesser extent, have?

The current situation is positive. Growth prospects remain good for this newly begun 2026. In general, Spanish companies are more optimistic than their European counterparts, although several variables cloud their potential, such as high tax rates and absenteeism—especially sick leave—according to employers' organizations. These are essential elements, they affirm, for improving competitiveness and productivity. A key positive point is exports—once the initial shock of tariffs in the trade policies implemented by Donald Trump in the US has subsided—despite geopolitical instability, according to the survey results. Business Outlook 2026 which are prepared annually by European chambers of commerce, including the Spanish chamber, chaired by José Luis Bonet.

2026 opens up for the Catalan economy and the Spanish economy as a whole in a context of transition and uncertainty, but also of opportunity. After several years of sustained growth, exceeding that of the Eurozone, we are entering a phase in which the tailwinds are moderating, and the main challenge is no longer growth itself, but how we grow and on what foundations. Forecasts indicate that Catalonia will continue to grow above the European average and, foreseeably, also above the Spanish average, albeit at a more moderate pace. This positive trend confirms the strength of our economic fabric, but at the same time highlights an uncomfortable reality: growth alone does not guarantee progress. If it does not translate into structural improvements, productivity, and social cohesion, it risks becoming exhausted. The structural challenges of a new cycle

In this new scenario, the priority must be clear: to consolidate a more robust, more competitive, and more inclusive economic model. And this requires addressing, without delay, some structural challenges that we have been dragging along for far too long.

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Catalonia has a problem that has been identified for some time. And it's not that they do little or bad work: according to the latest regional accounting data from the INE, Productivity growth per hour worked in Catalonia is above the Spanish average and, especially, above that of the Community of Madrid. This trend is largely due to the greater weight of industry, which contributes more added value, investment, and exports than in Madrid, where services are even more prevalent. In any case, the Spanish capital leads in average salaries, due to the high concentration of headquarters of large companies and, therefore, of well-paid managers and executives. But the real problem is wealth redistribution: Madrid leads the way—the capital city effect plays a significant role—with a larger share of the wealth per capita. The second and third positions are occupied by two regions with their own financing models: the Basque Country, which also has a large industrial sector, and Navarre. The solution? There isn't a single one, but some could include reviving initiatives such as the pact to increase the weight of industry, given the advantages this activity provides to the economy as a whole; Promoting the creation of larger or more technologically advanced companies (more value and higher wages) and a regional funding model that, while perhaps not unique, is certainly fairer. Little...

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The productivity growth of Catalan workers was significantly higher than that of employees in the Community of Madrid, and also much higher than the Spanish average, according to 2024 regional accounting data published this Tuesday by the National Statistics Institute (INE). According to this agency, Catalan productivity improved by 1.82%, while that of Madrid workers increased by only 0.04%. The Spanish average stood at 1.20%. In contrast, workers in Madrid were much better paid than their Catalan counterparts. The average salary in Madrid was €46,850 per year, while in Catalonia it was €43,411. The INE includes all types of compensation received by the worker in the average salary, whether in cash or in kind, overtime pay, and social security contributions. In both cases, the average salary was significantly higher than the national average of €40,514 per year. In the ranking of highest-paid workers, Madrid takes first place (€46,850), followed by the Basque Country (€45,321), Catalonia (€43,411), and Navarre in fourth place (€43,109). At the other end of the spectrum, the lowest average salary is in Extremadura (€33,695), behind Murcia (€34,573) and Andalusia (€35,505). Another aspect covered by the INE (National Institute of Statistics) is the growth in investment, which, according to the latest data from Idescat (Statistical Institute of Catalonia) It has become the main engine of the Catalan economyThus, according to the INE (National Institute of Statistics), investment in Catalonia in 2024 grew by 7.1%, the same percentage as in the region presided over by Isabel Díaz Ayuso, and two points above the national average (5.1%). In fact, the regions where investment grew the most last year were Ceuta and Melilla (9.7%), Cantabria (8.8%), and Catalonia and Madrid (7.1%). Investment fell in only one region, La Rioja, with a decrease of 1.7%.

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Round numbers, like birthdays, captivate us with their certainty. The 50th anniversary of the dictator's death—Franco—holds a mirror up to us, reflecting both successes and failures. The mirror that generates the most unanimity among economists is GDP per capita, seen as a measure of prosperity. We have reliable data to compare the GDP per capita of each of Spain's current autonomous communities in 1975 (they didn't yet exist, but their boundaries were statistically well-defined) and today (2024). In 1975, Catalonia's GDP per capita was 28% above the national average. This was the lowest figure achieved in the entire previous century. The decline was particularly rapid between 1920 and 1930 and between 1960 and 1975. In both cases, in addition to the similar political regime—military dictatorship—there was a very strong wave of immigration. In fact, these were the two largest waves of immigration of the entire 20th century.

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There's no way to overcome this challenge. Europe invests a third less in innovation than the US, and this gap persists, leading to a loss of competitiveness and productivity. This is the warning from Europe G, the think tank led by former Catalan Minister of Economy Antoni Castells, in its latest report. paperData from the OECD and Eurostat clearly reflect this: European spending on research and innovation (R&D) amounts to 2.3% of gross domestic product (GDP) compared to 3.5% in the United States. This 35% difference "explains the lag in productivity, business profitability, and technological leadership," the authors assert.

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At the entrance to the CCOO headquarters in Madrid, there is a plaque marking the birthplace of the union's current general secretary, Unai Sordo (Barakaldo, Basque Country). The immense plaque CCOO, of the Basque Agustín Ibarrola Goicoechea (1930-2023), presides the hall contrasting with the gray concrete. "Ibarrola was a much-loved figure," Sordo recalls. The union leader receives ARA shortly after Junts announced its veto of some of the Spanish government's laws.

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Ninety-one percent of Catalan economists, who held their annual conference in Barcelona, ​​believe that Catalonia must change its production model to guarantee its competitiveness, according to data from the College of Economists announced by the organization's dean, Carles Puig de Travy. The challenges are overcoming low productivity, infrastructure deficiencies, excessive bureaucracy, and a lack of structural reforms. At the same conference, the Catalan Minister of Economy, Alícia Romero, on the same day that Catalonia's growth figures for the third quarter were released (0.7% quarter-on-quarter and 2.4% year-on-year), stated: "Competitiveness must generate wealth that is shared socially and territorially, otherwise..."

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The Barcelona Chamber of Commerce revised upwards its growth forecasts for the Catalan economy this year on Tuesday. The business institution believes that economic activity will rise in 2025 thanks to an improvement in household consumption and business investment, something that is also being reflected in the rise in productivity, one of the historically unresolved issues for the Catalan productive sector. Therefore, the president of the Chamber, Josep Santacreu, sent a message of "optimism" but with "caution."

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The debate on the transformation of the production model is often presented in terms of reducing or increasing the weight of certain sectors. The activities to be reduced would be the least productive, such as tourism, as opposed to the most productive, such as industry. Without going into the core of this debate, it is worth making some clarifications about the relationship between productivity, employment, and the remuneration of labor and capital in the different economic sectors. Tourism, for example, is not really a single sector of activity. It is a diverse economic and social phenomenon with a significant impact on different branches of activity (from hospitality to commerce, including transportation, cultural and sports activities, and the food industry).

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More tourism, fewer jobs in manufacturing. This is, in essence, the conclusion of a new study analyzing the impact of the increase in foreign visitor flows on the labor market in Spain. It shows how the arrival of more tourists leads to an increase in hiring in this sector and in related services, but at the same time destroys others, especially in manufacturing, where wages have also fallen.

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One outstanding issue for Catalonia is improving technology transfer, that is, the process of transforming knowledge from scientific and technological research into practical solutions or applications for the market. It is an essential element of innovation and, by extension, improving productivity, the variable that ensures long-term progress. The Basque Country in Spain and Flanders in Belgium are two benchmarks that Catalonia looks to, characterized by having innovative ecosystems focused on industry.

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The Catalan economy is experiencing a seemingly prosperous moment. With GDP growth of 3.6% in 2024, four times that of the eurozone, Catalonia is consolidating its position as Spain's growth engine. However, this temporary boom hides a more complex reality that deserves deep reflection: the structural problem of productivity, the cornerstone upon which any strategy for sustainable prosperity must be built. The paradox of growth without productivity is reflected in the most revealing fact of the current situation: despite vigorous economic growth, total factor productivity (TFP) in Catalonia contributed negatively (-0.2 points) to GDP growth in 2023. This means that growth is fundamentally based on the accumulation of productive factors—more workers, rather than better, more workers; its reflection in the evolution of per capita income. Spain, as a whole, has experienced a 7.3% drop in its TFP between 2000 and 2022, while in the United States it grew by 15.5%, Germany by 11.8%, and France by 12.7% over the same period.

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One of the challenges facing an economy is technology transfer—translating knowledge derived from scientific and technological research into practical solutions or applications for the market. In 13 of the 23 indicators of the European Commission's Regional Innovation Scoreboard (RIS) for 2025, designed to identify strengths and weaknesses relative to Europe's leading innovation regions, Catalonia still lags behind the European Union (EU) average.

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