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4w ago

CES Says Spain's Growth Has Failed to Raise Household Living Standards

The council blames soaring rents, higher purchase prices and years of elevated consumer prices, urging use of a newly agreed €7 billion housing fund to expand public social housing.

El presidente del Consejo Económico Social de España (CES), Antón Costas, en una imagen de archivo.

Overview

  • The Consejo Económico y Social says the historical link between macroeconomic growth and household wellbeing has broken because housing costs and the accumulated effect of higher prices are eroding real incomes for many families.
  • The report brands housing a “black hole” that absorbs wage gains and points to rising rents and purchase prices as the principal reason growth has not translated into better everyday living standards.
  • Despite that gap, the CES highlights structural gains in the economy, noting Spain’s strong productivity and employment performance and a 2.8% GDP increase in 2025 while unemployment remains around 10 percent.
  • The council calls for broad political and institutional consensus to deploy the newly agreed €7 billion state housing plan and to rebuild and expand the public social housing stock.
  • CES president Antón Costas made a personal observation about possible competition problems in some goods and services markets but said the council has not formally examined that issue, and the report warns geopolitical uncertainty could reverse recent gains.