Spain

   

Social Sustainability

#8
Key Findings
Spain performs well in international comparison (rank 8) in the category of social sustainability.

The education system is decentralized, with the central government setting basic standards and the autonomous regions managing resources and regulations. There are significant differences in financial and human resources per student across regions. All children aged three and above are today legally entitled to a place in a preschool.

A national minimum income program was approved in 2020, with benefit levels raised substantially in 2023. While health care is offered universally, challenges such as long waiting lists for care and overwhelmed emergency services have led many people to purchase private health insurance. A recent reform substantially increased basic pension benefit levels.

A well-funded gender equality plan was launched in 2022. Right-wing parties are challenging antidiscrimination laws related to gender identity and sexual orientation. Family policy offers generous maternity leave benefits. Society is quite open to migrants, but available jobs are often precarious.

Sustainable Education System

#19

To what extent do policies and regulations in the education system hinder or facilitate high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring high-quality education and training.
Policies Targeting Quality Education
7
Article 27 of the Spanish constitution guarantees the right to education and academic freedom. The Spanish education system is decentralized: the central government regulates basic elements, while the autonomous communities develop their own regulations and manage the education system within their territories. Schools have pedagogical, organizational, and managerial autonomy over their resources.

Primary funding comes from the Ministry of Education and Vocational Training and regional education authorities. National allocations for education are established annually in the state budget, while autonomous communities determine their own education budgets. Local administrations are responsible for creating, constructing, and maintaining facilities for public educational institutions.

There is significant variation among autonomous communities in allocating financial and human resources per student, leading to substantial differences in educational outcomes. During the review period, the education system received significant EU resources to enhance the digital skills of teachers and students. The RRP supports efforts to reduce early school leaving and grade repetition rates, improve the link between educational attainment and labor market needs, and provide additional support to the most vulnerable students.

In April 2022, the Organic Law 3/2022 on the organization and integration of vocational training came into force, aiming to create 200,000 new vocational training places by 2023. It introduces dual vocational training in certain study grades and emphasizes the relationship between training centers and companies.

Between February and April 2022, a series of royal decrees were enacted to implement a curriculum reform for primary and secondary education. The updated curricula align with the EU Council Recommendation on Key Competences for Lifelong Learning.

The education system facilitates the recruitment of highly qualified educators through university education and further training opportunities. Primary school teachers need a teaching degree and must pass competitive examinations, while secondary education teachers require a university degree followed by specialized master’s training.

The framework legislation outlines guidelines for Continuing Professional Development (CPD) programs offered by autonomous communities. These programs provide teachers with diverse training activities and establish priority training guidelines. The National Institute of Educational Technologies and Teacher Training annually determines the priority areas for teacher training plans and offers professional development programs.

In January 2022, the government initiated a continuous national dialogue on enhancing the teaching profession, particularly in anticipation of low replacement rates. The results of this discourse will shape a new regulatory framework.

The education system is founded on a strong commitment to inclusiveness and values at all levels of education. The government’s commitment to equity is reflected in the education law that came into force in 2021. Digitalization and the development of digital competencies are among the top priorities of the law, providing a reference framework for digital teacher competence.

“Environmental sustainability education is a fundamental element of the Education Act. This subject is covered both as a cross-cutting component and within the subject of Civic and Ethical Values. The law also envisions integrating sustainable development and global citizenship into the training program for prospective teachers.”

Citations:
European Commission. 2022. “Education and Trading Monitor, Spain.” https://op.europa.eu/webpub/eac/education-and-training-monitor-2022/en/country-reports/spain.html

Eurydice Network (2023): https://eurydice.eacea.ec.europa.eu/national-education-systems

Royal Decree Law 157/2022 of 1 March

To what extent does the current policy approach in the education system hinder or facilitate equitable access to high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring equitable access to high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring equitable access to high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring equitable access to high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring equitable access to high-quality education and training.
Policies Targeting Equitable Access to Education
7
Spain has improved access to early childhood education across all autonomous communities. Spanish legislation ensures that every child aged three and above has a legal entitlement to a place in an early childhood education institution. Royal Decree 95/2022 establishes minimum teaching standards for early childhood education, declares the second cycle tuition-free, and outlines plans for extending free education to the first cycle, prioritizing students at risk of poverty and social exclusion.
Administrations are mandated to incrementally enhance the availability of public places in the first cycle. The RRP includes a commitment to creating 60,000 affordable public places for children under three by 2024, particularly in areas with higher risks of poverty or social exclusion and in rural regions.
Autonomous communities establish the curriculum for early childhood education and regulate complementary activities and school services. Financial support, admission processes, and the number of places vary significantly among communities. A sound monitoring system for quality is still to be established, and further cooperation is necessary to ensure equal access and quality.
Primary, secondary and post-secondary non-tertiary education are compulsory and cost-free. The Law of Education includes measures to ensure that students from low-income families are equally represented in public and semi-private centers. Extracurricular activities that require payment will not be allowed during school hours.

According to national framework legislation, the autonomous communities must encourage the quality, equity and social inclusion of students with disabilities, as well as equal opportunities and nondiscrimination. The role of the National Institute for Educational Evaluation could be fostered.

School failure is significant in Spain, with the percentage of students not achieving the compulsory education diploma below 15%. This proportion has stabilized after a decade of substantial decrease. Students who fail cannot continue and eventually leave formal education. The education law aims to increase educational and training opportunities for all, improve educational outcomes, and limit grade repetition. The Spanish government and autonomous communities are jointly implementing cooperation programs to promote second-chance education opportunities for students at risk of repeating grades or leaving school, through targeted pedagogical and psychological guidance. However, awareness of these opportunities for re-entry into education and training remains low.

Citations:
OCDE. 2023. Propuestas para un plan de acción para reducir el abandono escolar temprano en España.
https://www.oecd.org/education/propuestas-para-un-plan-de-accion-para-reducir-el-abandono-escolar-temprano-en-espana-9bc3285d-es.htm

Eurydice. 2023. “Spain.” https://eurydice.eacea.ec.europa.eu/national-education-systems/spain/overview

Sustainable Institutions Supporting Basic Human Needs

#9

To what extent do existing institutions ensure equal access to essential services and basic income support for those in need?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of ensuring equal access for those in need.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of ensuring equal access for those in need.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of ensuring equal access for those in need.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of ensuring equal access for those in need.
Policies Targeting Equal Access to Essential Services and Basic Income Support
7
The minimum income scheme was approved in May 2020. Until then, there were 17 different schemes in Spain, each run by a different regional government. The minimum vital income, granted by social security, aims to guarantee a minimum standard of living across the entire country. Generally, the national income scheme also aimed to reduce administrative complexity, simplify applications, unify definitions, and streamline information.

According to AIReF, only 35% of potential recipients received the aid in 2022, and of the 470,000 families that met the requirements, 58% did not apply for it (AIReF 2023). To address this, the government launched an information bus that traveled around Spain and deployed an institutional campaign across multiple media outlets explaining how to apply.

Additionally, the autonomous communities and local entities have developed measures to improve the take-up of their support for essential services. For example, Project CiNTRAS in Madrid supports families benefiting from the minimum income scheme through counseling. Each regional government also provides a minimum vital guarantee, which complements the national scheme.

The high level of non-take-up of the minimum vital income has been explained by difficult procedures and the focus on online applications, as well as the lack of trained personnel for the implementation of these measures in public administration. After three years of implementation, the procedures have been simplified (easy language) and become more routinized. However, further measures are needed to reduce the level of non-take-up.

National policies ensure that those in need have access to basic services through the minimum vital income, intergovernmental transfers, and framework legislation and regulations. Access to water and sanitation services is regulated by local governments. While there is no direct intervention by the central government, some AC governments have legislated a rebate of up to 100% of the water tax bill for vulnerable households. A social fund has been set up by water companies that have been granted the concession to provide home water services. This fund is used to pay the water bills of people living in severe poverty or social emergency situations.
The central state regulates access to energy and discounts on tariffs. For example, in 2022 and 2023, the government extended the reduction on electricity and gas taxes. Autonomous communities and local governments manage direct aid and pay part of the tariff for households in a situation of social emergency, termed “bono social eléctrico.”
The central government approved earmarked transfers to local governments during the observation period to reduce or eliminate public transport tariffs. The government included the development of digital infrastructure in the RRP to strengthen social and territorial cohesion. In 2019, the government passed a law obligating banks to offer a free basic account to individuals in precarious situations or at risk of financial exclusion.

Citations:
European Commission. 2020. Access to Essential Services for People on Low Incomes in Europe – An Analysis of Policies in 35 Countries. https://data.europa.eu/doi/10.2767/93987

AIReF. 2023. “2.ª Opinión ingreso mínimo vital opinión 2/23.” https://www.airef.es/wp-content/uploads/2023/06/IMV/230615.-Opinio%CC%81n.-Segunda-Opinio%CC%81n-IMV_AIReF.pdf

Royal Decree Law 164/2019 of 22 March

To what extent do existing institutions and policies ensure high-quality services and basic income support?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
Policies Targeting Quality of Essential Services and Basic Income Support
7
The minimum vital income (MVI) guarantees a minimum standard of living and fulfills basic human needs in Spain. For individual beneficiaries, the support is set each year at the amount of non-contributory pensions. In 2022, an adult household without dependent children that met all the requirements could receive a maximum of €5,899.60 per year. This guaranteed income increases as the household size grows.

In 2023, an extraordinary 15% increase in the MVI amounts was approved. Most autonomous communities have adjusted their regulations governing minimum incomes to align with the state benefit. These regional minimum incomes complement the state benefit and account for various living costs, such as housing, energy, and public transport, specific to each autonomous community.

To mitigate the impact of rising energy prices and interest rates on vulnerable populations, the government implemented several measures in 2022. These include lowering VAT on natural gas and basic foodstuffs, offering free medium-distance public transport by rail, and implementing protections for mortgagors without resources. These measures were extended on January 10, 2024.

Citations:
Royal Decree Law 6/2022 of 29 March
Royal Decree Law 17/2022 of 20 September
Royal Decree Law 8/2023 of 27 September

Sustainable Health System

#14

To what extent does current health policy hinder or facilitate health system resilience?

10
 9

Health policies are fully aligned with the goal of achieving a resilient health system.
 8
 7
 6


Health policies are largely aligned with the goal of achieving a resilient health system.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving a resilient health system.
 2
 1

Health policies are not at all aligned with the goal of achieving a resilient health system.
Policies Targeting Health System Resilience
7
The implementation of digital medical records and prescriptions, patient portals, and electronic appointments accounts in large part for Spain’s high ranking in Bertelsmann Stiftung’s Digital Health Index. The index also points to the loss of joint efficiency in monitoring because there is no shared digital health strategy among the levels of government.
The RRP sets the goals of enhancing the health system’s resilience (30.8% of the total health investment of the RRP) and digital transformation through the development of shared massive data analysis (5.8% of the total health investment). Accordingly, the national Digital Health Strategy (2021 – 2026) foresees areas for joint decision-making between the national Ministry of Health and the autonomous communities, which have full responsibility for planning and developing digital health services. These areas include the interoperability of clinical information between health services and the integration of essential data for each person in the NHS (Government of Spain 2022).

To implement the strategy, the Intergovernmental Council of the NHS established a Digital Health Commission to streamline information sharing, collaboration, and decision-making among all actors in the NHS, such as in disease prevention. In this context, the Ministry of Health, with the participation of all autonomous communities, is launching the National Health Data Space, a large national health data pool to facilitate research and decision-making in health through the use of new technologies and Artificial Intelligence.
Moreover, the government established a new General Secretariat for Digital Health. Its main objectives are promoting innovation and reinforcing performance assessment and data analysis capabilities.

The Spanish Agency of Medicines and Healthcare Products aims to guarantee medicine supplies and improve coordination. While the unequal distribution of health professionals hinders access, new policies, such as the implementation of telehealth, have been speeded up due to investments from the RRP. The agency’s annual budget was reduced in 2022 – 2023 to levels prior to 2016. The RRP also sets out a new approach for the rational use of medicines and ensuring sustainability. During the reviewed period, the centralization of medicine purchases continued to be managed at the regional level.

Per capita health spending in Spain remains below the EU average and varies significantly among autonomous communities (OECD 2022). Over the past decade, there has been a widening gap between Spain and EU countries in total health expenditure, reflecting slower growth. The increase in spending is attributed to an aging population and advancements in medical technology. To counteract the rising costs, measures such as the digitalization of the health system, research and innovation in health, and talent attraction are considered essential. However, specific targeted actions have yet to be implemented.

Citations:
Government of Spain. 2022. “Estrategia de salud digital.” https://www.sanidad.gob.es/areas/saludDigital/doc/Estrategia_de_Salud_Digital_del_SNS.pdf

Government of Spain. 2022. “Estrategia de Salud Pública 2022.”
https://www.bertelsmann-stiftung.de/de/unsere-projekte/der-digitale-patient/projektthemen/smarthealthsystems/digital-health-index

OECD. 2023. Spain Country Health Profile 2023.

To what extent does current health policy hinder or facilitate achieving high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving high-quality healthcare.
Policies Targeting High-Quality Healthcare
7
The law on the cohesion and quality of the national health system dates back to 2003 but has been frequently updated, most recently in March 2021. The system is designed to offer efficient primary care. However, recent years have seen the healthcare system come under pressure from demographic changes, evolving healthcare needs, rising expectations, and innovations (WHO 2023). Experts and professionals have long pointed to a budgetary shortfall that has negatively impacted the system, resulting in a lack of human and material resources and increasing variability in the timeliness and quality of healthcare services across autonomous communities. Long waiting lists for ambulatory care and surgery, as well as overloaded emergency services, are common issues. According to the Health Barometer 2023, only 57.5% of the general population rated the functioning of the health system positively in October 2023, compared to 72.1% in 2019.

In 2023, the Spanish Ministry of Health’s budget expenditure exceeded €2.6 billion, up from approximately €2.4 billion in the previous year. The INVEAT plan, part of the RRP, has dedicated €796 million since 2021 to modernize technology, enhance early disease diagnosis, and enable prompt therapeutic intervention.

The national Ministry of Health has improved its constitutionally determined coordination function, aiming to ensure national standards in healthcare delivery. The anticipated National Public Health Agency is expected to improve system governance and foster cooperation mechanisms between the healthcare and public health services of the autonomous communities.

In late 2023, the central government convened a Sectoral Conference for Health with autonomous communities to address systemic issues. However, effective cooperation and shared decision-making have been challenging, evidenced by the government imposing its coordinating power to enforce the use of facemasks in healthcare facilities during the rising incidence of influenza in January 2024.

The RRP has partially improved access to funding for training and research in the health sector, including venture capital investment in technology-based or innovative companies. Investments from the RRP will contribute to creating a healthcare data lake to facilitate massive data processing projects. Autonomous communities’ health services are working on implementing innovative advanced analytics techniques to optimize waiting lists and assist in cancer screening.

Furthermore, the RRP includes measures to strengthen the resilience and capacity of the health system. These measures aim to boost research on pharmaceutical product sustainability, increase genomic testing capabilities, improve human biomonitoring infrastructure, and upgrade patient-oriented clinical research units.

The Public Health Strategy 2022 included a specific action plan to improve the population’s health and well-being through disease prevention, promoting healthy lifestyles, and fostering safe and sustainable environments. Smoking, alcohol consumption, and obesity remain significant public health issues in Spain, with high consumption rates potentially linked to comparatively low taxes on these substances.

Citations:
Government of Spain. 2022. “Estrategia de Salud Pública 2022.”
https://www.bertelsmann-stiftung.de/de/unsere-projekte/der-digitale-patient/projektthemen/smarthealthsystems/digital-health-index

Government of Spain. 2021. “Plan INVEAT. Investment in High Technology Equipments.”
https://www.sanidad.gob.es/profesionales/prestacionesSanitarias/PlanINVEAT/pdf/Plan_INVEAT.pdf

Opinión de los ciudadanos. Barómetro Sanitario 2023. octubre de 2023. https://www.sanidad.gob.es/estadEstudios/estadisticas/BarometroSanitario/home_BS.htm

WHO. 2023. “Primary Health Care Transformation in Spain: Current Challenges and Opportunities.” https://iris.who.int/bitstream/handle/10665/373464/WHO-EURO-2023-8071-47839-70649-eng.pdf?sequence=1

To what extent does current health policy hinder or facilitate equitable access to high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving equitable access to high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving equitable access to high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving equitable access to high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving equitable access to high-quality healthcare.
Policies Targeting Equitable Access to Healthcare
7
Equitable access to healthcare is guaranteed throughout Spain, despite persistent social differences. The system offers universal healthcare regardless of socioeconomic status, age, gender, or ethnicity. However, the challenges facing the public health system have led Spaniards to spend a record amount on private health insurance in 2022.

Essential healthcare is guaranteed in all autonomous communities, and individual satisfaction with the health system does not vary substantially across regions (with Cantabria peaking at 6.83 and Andalusia recording the lowest at 5.87 in 2023). Nonetheless, significant differences exist among and within autonomous communities regarding access to healthcare. Variations in regional health spending reflect efforts to ensure equivalent access to welfare across the country, but differences persist due to regional governments’ preferences and ideologies and varying service provision conditions (population dispersion or congestion). These issues highlight the need for reforming the financing of the Spanish territorial model.

Citations:
Ministerio de Sanidad. 2023. “Indicadores clave del sistema nacional de salud.” URL

Rosa Urbanos-Garrido. 2016. “La desigualdad en el acceso a las prestaciones sanitarias. Propuestas para lograr la equidad.” Gaceta Sanitaria 30(S1): 25–30.

Gender Equality

#2

How committed is the government to ensuring gender equality in all respects?

10
 9

The government is clearly committed to the goal of ensuring gender equality.
 8
 7
 6


The government is largely committed to the goal of ensuring gender equality.
 5
 4
 3


The government is only somewhat committed to the goal of ensuring gender equality.
 2
 1

The government is not at all committed to the goal of ensuring gender equality.
Policy Efforts and Commitment to Achieving Gender Equality
9
In recent years, the Spanish government has enacted various laws to enhance gender equality in the workplace, including the Equal Pay Decree. In March 2022, the government endorsed the III Strategic Plan for the Effective Equality of Women and Men 2022–2025, with a projected investment of €21.3 billion. Aligned with Agenda 2030, relevant Council of Europe conventions, and the European Strategy for Gender Equality 2020–2025, the plan is organized around four key action areas and builds upon assessments of previous plans.

At the strategic level, 14 indicators measure the plan’s impact, and at the specific level, 64 result indicators have been established. The monitoring system includes at least one performance indicator for each operational objective. For example, impact indicators for the first action plan include increasing the integration of gender equality in public policy management and the number of public employees trained in gender equality approaches.

The strategic plan serves as a guiding document for the central government administration, providing a framework for other administrations to design their action plans.

Guaranteeing the inclusion of a gender perspective has led to various laws mandating ex ante gender assessments and gender budgeting practices.

The Ministry of Equality and the Interministerial Commission for Equality between Women and Men are the primary entities responsible for implementing gender equality policies. Other ministries, such as the Ministry of Labour and Social Economy, are also involved in specific actions. The plans build upon existing infrastructure, including the Women’s Institutes and Equality Units in ministerial departments, and establish new interdepartmental working groups for gender mainstreaming. The Sectoral Conference on Equality ensures cooperation between the Central State Administration, autonomous communities, and local entities. Civil society is also involved in monitoring the strategic plan 2022–2025.

Autonomous communities have established joint anti-discrimination protections based on gender identity and sexual orientation. However, the extreme right-wing party Vox, in coalition with or supporting the PP in several autonomous communities, is attempting to overturn laws on anti-discrimination based on gender identity and sexual orientation and reduce funding for women’s institutes.

Citations:
Government of Spain. 2022. “III Strategic Plan for the Effective Equality of Women and Men 2022-2025.” https://www.inmujeres.gob.es/publicacioneselectronicas/documentacion/Documentos/DE1824.pdf

Strong Families

#9

To what extent does the current family policy approach support or hinder unpaid family care work?

10
 9

Family policies are fully aligned with the goal of creating the conditions for strong families.
 8
 7
 6


Family policies are largely aligned with the goal of creating the conditions for strong families.
 5
 4
 3


Family policies are only somewhat aligned with the goal of creating the conditions for strong families.
 2
 1

Family policies are not at all aligned with the goal of creating family-friendly conditions.
Family Policies
8
Maternity leave in Spain consists of 16 weeks for a single child, during which the mother receives 100% of her salary. If the baby has a disability, an additional two weeks are allowed. To promote shared responsibility within households, fathers are also entitled to up to 16 weeks of paid leave for the birth of a child. Adoptive and host parents are also entitled to paid leave.

The family support system provides job protection and wage replacement schemes for up to eight months. After maternity or paternity leave, parents can apply for unpaid leave, allowing them to take up to three years off work to care for their children and then return to their workplace.

In the first half of 2023, 109,731 paternity leaves were taken by the first parent, usually the mother, and 122,044 by the second parent, usually the father. However, more women (21,089) than men (3,853) have requested additional leave for child or family care (Meil et al. 2023). Work-life balance is a growing concern in Spain. The government has addressed this with the introduction of the Family Law (Royal Decree Law 5/2023), aiming to improve work-life balance for employees by introducing three new leaves of absence focused on childcare and family care:

Employees can apply for unpaid leave to care for their child for an extended period beyond one year.
Employees can request up to five days a year to care for a family member or partner in cases of accident or serious illness.
Employees have the right to be absent from work in situations of force majeure for up to four days.

Access to affordable childcare for children below school age is not guaranteed (see “Sustainable Education System”). Boosting schooling for children aged 0-3 is one of the main investments of the RRP. Between 2021 and 2023, a total investment of €670.1 million has been earmarked for the creation of more than 65,000 publicly owned places. According to Eurostat, the enrollment rate in the first cycle of preschool has reached 46.5%, its highest level since data became available. The number of children aged 0 to 3 enrolled in school increased by 6.8% in the 2022–2023 academic year compared to the previous year, with 29,919 more pupils.

At the state level, there is a tax deduction for “childcare expenses.” Fourteen autonomous communities use their regulatory capacity to apply different deductions related to childcare costs in early childhood education centers or costs in other educational stages, such as the purchase of textbooks.

Citations:
Meil, G., Escobedo, A., and Lapuerta, I. 2023. “Spain country note.” In International Review of Leave Policies and Research 2023. http://www.leavenetwork.org/lp_and_r_reports/

Royal Decree Law 5/2023 of 28 June

Sustainable Pension System

#12

To what extent does the current pension policy approach prevent poverty among senior citizens?

10
 9

Pension policies are fully aligned with the goal of preventing old-age poverty.
 8
 7
 6


Pension policies are largely aligned with the goal of preventing old-age poverty.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of preventing old-age poverty.
 2
 1

Pension policies are not at all aligned with the goal of preventing old-age poverty.
Policies Aimed at Old-Age Poverty Prevention
7
Over the past years, there has been no shortage of warnings from within or outside Spain (e.g., the Bank of Spain, the EC, IMF and OECD) that the country’s pension system is heading toward a crisis. As part of the RRP, the EC requested a pension reform. In 2023 the government reached a pact with the opposition and social partners to safeguard the public pension system. The pension reform substantially increased basic pensions, minimum pensions and targeted benefits, as well as income protection for workers with irregular careers, including mothers. The reform particularly benefits retirees with low pensions.

Spanish pension policy successfully prevents poverty but only moderately meets standards of intergenerational equity and fiscal sustainability. Older people are less likely to be poor than the general population, with the old-age poverty rate (5% for men; 2% for women) being lower than that of the total population. Nonetheless, Spain ranks as the sixth OECD country in terms of income poverty among those aged over 65.

Spain removed automatic adjustment mechanisms, leading to a decline in pensions in real terms for several consecutive years. To address financial sustainability, including the low indexation of pensions in payment, Spain reintroduced price indexation, effective in 2022. Consequently, the recent pension reform will increase the net replacement rates for full-career workers. In 2023, the gender gap in pensions was reduced to 21.1%.

Citations:
OECD. 2023. “Pensions at a Glance 2023.” https://www.oecd.org/els/public-pensions/PAG2023-country-profile-Spain.pdf

To what extent does the current pension policy approach hinder or promote intergenerational equity?

10
 9

Pension policies are fully aligned with the goal of achieving intergenerational equity.
 8
 7
 6


Pension policies are largely aligned with the goal of achieving intergenerational equity.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of achieving intergenerational equity.
 2
 1

Pension policies are not at all aligned with the goal of achieving intergenerational equity.
Policies Targeting Intergenerational Equity
7
In Spain, fewer than one in ten individuals aged 65-69 are employed. The 2023 pension reform aims to incentivize longer working lives. For the first time, the average retirement age surpassed 65 years in 2023. According to the reform, individuals who postpone retirement receive a 4% bonus for each full year worked beyond the retirement age. This bonus can be received as a lump sum, which depends on the initial pension amount and the period of contributions, or as a combination of both. The new regulation reduces the early retirement period from 24 to 21 months for those previously taking early retirement, mitigating the higher penalty for the additional three months.

To address the anticipated rapid growth in pension expenditures until 2049, the reform includes an increase in the contribution base and a restrained increase in the maximum pension. It also introduces an Intergenerational Equity Mechanism. Beginning in January 2023, the contribution rate will increase by 0.6% (0.1% for workers and 0.5% for employers) from 2023 to 2032 to fund this mechanism. Contributions have been raised for high earners through a new solidarity contribution on earnings exceeding the maximum contribution base, which does not contribute to pension entitlements (AIReF 2023).

Withdrawals from the Intergenerational Equity Mechanism will be permitted starting in 2032 to support pension spending. The annual drawdown is capped at 0.2% of GDP, and until approximately 2040, inflows into the fund must surpass outflows.

Collectively, these measures, coupled with a reform in contributions by the self-employed, are projected to ensure intergenerational equity.

Citations:
AIReF. 2023. “El impacto de las reformas del sistema de pensiones entre 2021 y 2023.” https://www.airef.es/wp-content/uploads/2023/03/OPINIÓN-SOSTENIBILIDAD/230324.-DT.2.23_-Evaluación-impacto-reformas-sistema-de-pensiones-2021-y-2023.pdf

Sustainable Inclusion of Migrants

#7

To what extent does the current policy approach hinder or facilitate the inclusion of migrants into society and the labor market?

10
 9

Integration policies are fully aligned with achieving the sustainable inclusion of migrants in society.
 8
 7
 6


Integration policies are largely aligned with achieving the sustainable inclusion of migrants in society.
 5
 4
 3


Integration policies are only somewhat aligned with achieving the sustainable inclusion of migrants in society.
 2
 1

Integration policies are not at all aligned with achieving the sustainable inclusion of migrants in society.
Integration Policy
8
ccording to a December 2023 survey by CIS, only 8.6% of Spaniards listed immigration as a main concern, down from 15.6% in September 2019 and 59.2% in September 2006. This indicates that Spanish society is quite open toward the inclusion of migrants.

In 2022, 118,842 applications for international protection were formalized, doubling the number from 2021. However, significant difficulties arose in obtaining appointments to declare willingness to apply for international protection. The Forum for the Social Integration of Immigrants (2023) identified obstacles such as the accumulation of files in immigration offices, a shortage of appointments, and the heterogeneous interpretation of existing regulations. Digitalization in public administration has exacerbated existing inequalities among different social groups, particularly affecting immigrants and applicants for international and temporary protection.

EU immigrants have equal access to the Spanish labor market, while non-EU immigrants can access employment, self-employment, and unemployment support. However, available jobs are often unskilled, precarious, and insecure, primarily in domestic work and agriculture. Many non-EU immigrants are overqualified, but recognition procedures for their skills and qualifications are problematic.

Royal Decree 889/2022 establishes a six-month deadline for the homologation of foreign diplomas, aiming to improve migrant employability. Royal Decree Law 16/2022 of September 6 aims to enhance working conditions and social security for domestic workers. Royal Decree 629/2022 of July 26 updates labor-related migration regulations to address labor market needs and mismatches.

Spain ranks 23rd out of 38 Western democracies in the Migrant Integration Policy Index for migrants’ education. Most immigrant pupils can access all schools legally, but the dropout rate is high. Most immigrants are first-generation and, in the case of Latin Americans, share language and cultural ties with the native population. However, there is limited support for learning the language and catching up academically. Language courses are mainly provided by the third sector, funded by the Ministry of Immigration or the autonomous communities. Organic Law 3/2022, effective March 31, aims to facilitate social and educational inclusion for vulnerable people, such as immigrants, in the vocational training system.

Spain ranks 11th out of 38 Western democracies in the Migrant Integration Policy Index for family reunions and permanent residence. The Forum for the Social Integration of Immigrants (2023) recommends uniform criteria for assessing family extensions and accreditation of relationships, including criteria for DNA tests.

Voting rights for immigrants have been a significant debate. EU immigrants can vote and run in municipal and European Parliament elections. Foreign residents whose home countries permit Spaniards to participate in their elections have the right to vote and run in municipal elections.

The naturalization process is Spain’s main area of weakness. Immigrants can become citizens after 10 years of residence, with dual citizenship granted only to those from certain countries. Immigrants cannot travel abroad for extended periods during this time, although short holidays and work trips are allowed. They must pass a basic language test and a cultural test, and the process takes about two to three years. Recent changes have eased economic and language requirements slightly. Royal Decree 629/2022, of July 26, establishes units for processing residence or work authorizations.

The Secretariat of State for Migration develops migration policy, while the Interministerial Commission for Foreigners’ Affairs ensures coordination among relevant departments. Coordination with autonomous communities has been infrequent, with no meetings of the Sectoral Conference on immigration during the observation period. Autonomous communities have competencies related to social policies and work with third-sector entities and civil society organizations on training and consulting for immigrants.

In 2022, the State Secretariat for Migration promoted a public consultation for developing the “Strategic Framework for Citizenship and Inclusion,” adopted by the Council of Ministers in 2023. The framework includes 23 action lines, with annual or biannual reports on the actions undertaken.

The Spanish government has been advocating for an EU-wide solution for illegal migration and asylum procedures. During the Spanish presidency of the Council of the European Union, the council reached a political agreement on migration and asylum.

Citations:
CONVIVE. 2023. “Informe Sobre el Estado de las Migraciones en España (EMCIE).” https://www.cepaim.org/wp-content/uploads/2023/12/Resumen-Ejecutivo-EMCIE-2023-1.pdf

Foro para la Integración Social de los Inmigrantes. 2023. “Situación de las personas migrantes en España.” https://www.inclusion.gob.es/documents/1652165/2966006/Situación+de+las+personas+migrantes+y+refugiadas+en+España+-+Informe+Anual+2022.pdf/e55230f9-2aa9-3f4e-d64e-002b746e4551?t=1688465906066

Government of Spain. 2023. “Strategic Framework for Citizenship and Inclusion, (2023-2027).” https://www.inclusion.gob.es/oberaxe/ficheros/documentos/SummaryStrategic-Frameworkfor-Citizenship-and-Inclusionagainst-Racism-and-Xenophobia2023-2027.pdf

Effective Capacity-Building for Global Poverty Reduction

#17

How committed is the government to helping build the capacity to reduce poverty and provide social protection in low- and middle-income countries?

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 9

The government’s development cooperation strategy is fully aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
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 7
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The government’s development cooperation strategy is largely aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
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The government’s development cooperation strategy is only somewhat aligned with the goal of improving capacity-building in poverty reduction in low- and middle-income countries.
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 1

The government’s development cooperation strategy is not all aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
Management of Development Cooperation by Partner Country
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The Law on Cooperation for Sustainable Development and Global Solidarity, approved in January 2023 (Law 1/2023, de 20 de febrero), updates Spanish development cooperation policy to align with contemporary global standards and the commitments of the 2030 Agenda. It aims to foster greater integration into the European Union’s cooperation policy and improve the management of development assistance through a more robust structure and more coordinated, strategic, and effective action by all cooperation actors.

Strategic planning of the cooperation is articulated through the Master Plan, among other instruments. The V Master Plan of the Spanish Cooperation covered the period 2018–2021. During the observation period, no new plan was adopted, but the Agency for International Development Cooperation (AECID) implemented an updated action plan for 2022–2023 in October.

Law 1/2023 includes a specific section on the “Planning, Monitoring, and Evaluation of Spanish Cooperation for Sustainable Development.” A new Evaluation Office of Spanish Cooperation will be established as a unit attached to the Secretariat of State for International Cooperation. The 2022 evaluation report included an advanced assessment of the 2021 cooperation policies, improving upon previous reports.

Spanish cooperation policy aligns with the Sustainable Development Goals (SDGs) aimed at capacity-building for poverty reduction. Solidarity with disadvantaged people and future generations, sustainable development, poverty eradication, social and territorial cohesion, and the fight against global inequalities are fundamental principles of Spanish development cooperation.

In the 2023 budget, official development aid stands at 0.34% of GNI, up from 0.28% in 2022, but still far from the government’s commitment to reach 0.5% in 2024. Law 1/2023 stipulates that 0.7% of GNI should be dedicated to official development assistance by 2030, with ten percent of this budget targeted for humanitarian assistance.

Spanish universities play a significant role in development cooperation and are represented on the Cooperation Council. As contributors within the Spanish cooperation system, public universities actively promote knowledge-sharing and innovation with developing countries. They are required to report their performance in this field to the Ministry of Foreign Affairs and Cooperation. The Observatory of University Development Cooperation (OCUD) is an initiative led by the Conference of Rectors of Spanish Universities, in collaboration with AECID and the Ministry of Foreign Affairs and Cooperation.

According to AECID, Spanish development aid focuses on saving lives and strengthening public health systems. It fosters universal health coverage in developing countries by supporting the strengthening of national health systems and services. The goal is for partner countries to provide quality and equitable services at all levels of healthcare, both primary and specialized. This is achieved through technical cooperation programs, such as the Specialized Medical Training Programs (Drugs for Neglected Diseases Initiative) and programs within the Pan American Health Organization.

The OECD identified various laws and regulations in 2022 that hinder the flexibility, predictability, and accountability of the development program. Regulations, procedures, and the capacity to offer multi-year funding vary across instruments, including those directly managed by AECID.

Citations:
AECID. 2022. “Plan de Acción 2022-23.” https://bibliotecadigital.aecid.es/bibliodig/es/catalogo_imagenes/grupo.do?path=1031063

Secretaría de Estado de Cooperación Internacional. 2022. Informe anula de evaluación 2021.

OECD. 2022. “Development Co-operation Peer Reviews: Spain.” https://www.oecd-ilibrary.org/sites/a97b60ee-en/index.html?itemId=/content/component/a97b60ee-en
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