Balearic debt falls €500m as budget row flares

More than €500 million has come off the Balearic Islands’ public debt, but a fierce budget dispute is unfolding in Parliament in Palma. Vice-president and economy minister Antoni Costa said on Tuesday that public services have continued as normal under the extended 2025 budget.

Costa told the Finance and Budget Committee that the Government of the Balearic Islands had not cut services or held back investment. He said the extension could be adjusted to meet changing needs, although he would have preferred to secure a new budget.

Opposition points to spending cuts

Socialist MP Llorenç Pou said the figures told a different story. He cited cuts of €4.4 million in rights and diversity, €1.5 million in social services and €5 million at the Balearic Employment Service, known as SOIB.

Pou also attacked a 36 per cent fall in investment and raised concerns over new borrowing. He said there were cuts, a collapse in investment and nearly €700 million that the government had failed to manage.

Costa said the investment fall reflected European Next Generation funds that were spent in 2025 and could not be spent again this year. He insisted this was not an investment cut, but a pattern affecting public administrations more widely.

The Balearic Islands’ debt remains above €8,000 million despite the reduction, Costa said. He added that borrowing had helped cover public-sector payrolls.

Talks planned for 2027 budget

Costa said he would negotiate the 2027 budget with every parliamentary group. He expects the Balearic Islands to have greater spending capacity because tax income from island residents is rising sharply.

He said the 2027 accounts should have zero deficit and, in some cases, finish with a surplus. Vox has offered to negotiate, while MÉS per Mallorca spokesman Lluís Apesteguia said electoral competition between PP and Vox would make talks harder.

Topics: Social affairs · Jobs & labour · Politics

Source: Europa Press / Mallorca.com