Spain's Progress and Challenges in the EU's Digital Decade and Economic Landscape

As 2024 draws to a close, Spain is making significant strides in various sectors, from digital transformation to economic growth, but also faces several challenges that need to be addressed.

Digital Decade Targets

Spain has shown a strong dynamic in achieving the EU's Digital Decade targets, particularly in the adoption of Artificial Intelligence (AI) by enterprises. In 2023, 9.2% of Spanish enterprises had adopted AI solutions, contributing positively to the EU's overall goals. Additionally, the country has seen an improvement in basic digital skills among its population, with 66.2% of the Spanish population possessing at least a basic level of digital skills, surpassing the EU average of 55.6%[1].

However, despite these advancements, Spain still lags behind in other critical areas. The adoption of cloud services by enterprises remains limited, with only 27.2% of Spanish enterprises using cloud services, well below the EU average of 38.9%. Moreover, the growth rate in this sector is sluggish, at just 0.4% compared to the EU rate of 7%[1].

Another area of concern is the number of ICT specialists, which stands at 4.4% of the total employed population, below the EU average of 4.8%. Spain's national roadmap targets are also lower than EU expectations, highlighting the need for further efforts to attract and retain ICT specialists[1].

Economic Growth and Labour Market

On the economic front, Spain continues to be a driving force behind European growth. The country's economic activity has remained buoyant throughout the first half of 2024, driven primarily by foreign trade and a gradual recovery in private consumption. According to forecasts, Spain's real GDP is expected to grow by 3.1% in 2024, significantly outperforming the eurozone average of 0.8%[3].

The labour market in Spain has shown strength since 2021, with the number of people registered with social security increasing to 21.3 million in October 2024, a 3.5% rise since the start of the year. The unemployment rate has also fallen sharply to 11.2% in November 2024, down from 13.5% in November 2021. However, the youth unemployment rate remains high at 26.7%, and the number of long-term unemployed individuals is still a significant concern[3].

Tourism and Industry

Tourism continues to be a vital sector for Spain, with the country receiving 38.7 million passengers in the first five months of 2024, a 13.6% increase from the same period in 2023. The Ministry of Industry and Tourism has been proactive in promoting sustainable tourism, with Minister Jordi Hereu advocating for a tourism model that prioritizes people and creates quality jobs, especially for women and young people[4].

In the industrial sector, Spain is committed to a new European pact to ensure fair competition with third countries. Hereu has emphasized the need to reduce energy costs and simplify existing EU legislation to remove barriers and uncertainties for industrial investment. The government has also launched initiatives such as the PERTE VEC, which includes an investment of over €3.7 billion to support an electrified, sustainable, and affordable mobility model[4].

Youth Strategies and Digital Rights

Spain has also made significant strides in its youth strategies. The National Youth Strategy 2022-30, developed by the Spanish Youth Institute (INJUVE), focuses on young women, LGBTIQ+ individuals, and other marginalized groups. The strategy includes measures to support access to adequate housing and employment, reflecting a broader commitment to the well-being of young people[2].

However, concerns about digital rights have risen. Only 36% of Spanish respondents believe the EU protects their digital rights, a significant drop from previous years. There is also growing worry about online safety for children and control over personal data, highlighting the need to reinforce digital rights at the national level[1].

In conclusion, while Spain is making notable progress in digital transformation and economic growth, it faces critical challenges in areas such as cloud adoption, ICT specialist recruitment, and youth unemployment. Addressing these issues will be crucial for Spain to continue its momentum and meet the EU's Digital Decade objectives.