Spain is recording historic water reserves, reaching 82.9% capacity of its retention reservoirs thanks to a series of heavy rainfalls. Simultaneously, the economy is grappling with a record burden on the budget from pension expenditures, which consumed €14.27 billion in February. Despite inflation moderating to 1.7% in the eurozone, Spain remains the country with the highest price growth dynamics among the major EU powers, impacting the cost of living and tourism.
Record Water Retention
Retention reservoirs in Spain have reached 82.9% capacity, a result not seen in 40 years thanks to intense winter rainfall.
Pension Expenditure Crisis
The monthly cost of pensions has risen to a record €14.27 billion, and the number of beneficiaries has increased by nearly 400,000 people in a year.
Papal Visit in June
Bishops have officially confirmed that Pope Leo XIV will visit Madrid, Barcelona, and Tenerife in June.
Economic Growth Forecasts
The Coface agency has raised its GDP forecast for Spain by 0.5 percentage points, despite persistently high inflation relative to the eurozone.
Spain's water management system is reporting its best results in four decades. Thanks to a phenomenon known as a 'train of lows,' national reservoirs have filled to 82.9%, a record level in the last 40 years. The situation is particularly favorable in the basins of southern rivers, although paradoxically, slight declines have recently been recorded in the internal basins of Catalonia. Experts point to infrastructural challenges, as the average age of Spanish dams is 55 years, which, given the current load, requires increased technical supervision and modernization. The country's macroeconomic situation evokes mixed feelings. On one hand, the Coface agency has raised economic growth forecasts by nearly half a percentage point; on the other, Spain is struggling with the highest inflation among the main EU economies. While the average for the eurozone fell to 1.7% in January (the lowest level since 2024), Spain's rate of price growth remains above this threshold. Additionally, prices in the hotel sector in the Canary Islands continue to rise, raising concerns about service accessibility for local residents and the stability of the healthcare sector under pressure from excessive tourism. Since the 1980s, Spain has systematically expanded its network of over 2,400 dams, creating one of the most advanced water retention systems in Europe to counteract the effects of chronic droughts.In the social sphere, the social security system has reached a critical point. The cost of pension payments reached a record €14.27 billion in a single month, linked to an increase in the number of pensioners by nearly 400,000 people within a year. However, benefits are growing unevenly across the country – in Castile and León, the average pension reached €1,368, exceeding the national average. Against the backdrop of these challenges, bishops have confirmed the June visit of Pope Leo XIV, who will visit key regions of the country. On the stock exchange, the Ibex 35 index shows steady gains, surpassing the 18,300-point barrier. „Los obispos españoles confirman que el Papa León XIV visitará España en junio.” (The Spanish bishops confirm that Pope Leo XIV will visit Spain in June.) — Conference of Spanish Bishops In the industrial sector, a 3.3% price decline was recorded, driven mainly by lower energy costs. Nevertheless, the European automotive market had a weak start to the year, although forecasts for Spain predict sales growth to 1.3 million vehicles by 2030. Meanwhile, local authorities in Castile and León are mobilizing €28 million to combat unemployment through a special municipal employment program.
Mentioned People
- Leon XIV — Pope planning an apostolic visit to Spain in June 2026.
- Maurici Lucena — Chairman and CEO of the company Aena.