Record fall in Balearic debt

The debt increased massively because of the financial crisis

Antoni Costa, Balearics finance minister (centre), walked out of a meeting of the Council for Fiscal and Financial Policy. | Mariscal

Andrew EdePalma04/03/2025 10:06

Balearic debt in 2024 fell by 458 million euros and went below 20% of GDP for the first time since 2012. At the end of 2024 it stood at 8,121 million euros, of which 5,699 million were owed to the Spanish Government.

The debt has decreased on five occasions this century - 2018, 2021, 2022, 2023 and now 2024. The second largest fall was in 2023 - 295 million euros. The current government of the Partido Popular has continued the efforts of the second PSOE-led administration to cut the debt, which peaked under PSOE in 2020 (9,120 million euros).

The debt owed to the state came about because of the financial crisis and rose massively under the PSOE coalition of 2007 to 2011 and the PP government of José Ramón Bauzá from 2011 to 2015. In 2007 it stood at 1,798 million euros, which was just under seven per cent of GDP. By 2015 it was 8,330 million euros. In 2015 it was close to 30% of GDP. The pandemic led to this rising to 32%.

Balearic finance minister and vice-president, Antoni Costa says the government is "very proud" that the debt is now at such a low level. "From the first day we have applied a financial policy to reduce this debt not only in relative terms, but also in absolute terms. It is possible to lower taxes, improve essential public services and reduce debt."

Debt will be an issue for Tuesday's parliamentary session, the Balearics having rejected a Spanish Government proposal to wipe off 1,741 million euros that are owed to it.