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While the economies of the major European countries are in recession or witnessing modest growth, the Spanish economy is performing well with a 3.2% growth of GDP in 2024. Where Belgium, Britain and France have announced drastic austerity plans and cuts to social welfare, the ‘liberal’ Spanish government claims that it is “improving people's lives”. Where Paris, London, Berlin, etc., are openly talking about increasing military spending, President Sánchez appears to ‘resist’ these increases. While most European governments are taking unashamed measures to restrict the arrival of immigrants, the Spanish government appears to be a ‘bulwark’ against xenophobia and populism. So, is this radical image of the left-wing Spanish government justified? Absolutely not.
If other states, just as supportive of war and capitalist exploitation as Spain, are willing to perpetuate this myth of the ‘new Spanish miracle’, it is because they seek to perpetuate the misconception that a ‘prosperous’ capitalism is possible and that it is possible to stop war or the rise of populism with left-wing governments such as the one led by Sánchez.
Have working class living standards improved?
The official statistics contradict this claim. Since 2008, the purchasing power of wages has fallen, eroded by rising prices, particularly housing costs, which have seen a sharp increase, leading to overcrowding and insecurity for working-class families. What is growing is what is known as “working poverty”, i.e. increased numbers of working-class families who, even though in work, cannot afford basic necessities.[1]
The reduction in unemployment, so touted by the government and its trade union and left-wing partners, is in reality a replacement of stable employment with part-time, temporary or “fixed term” jobs[2], where workers' lives are at the mercy of commercial developments or the whims of the employer. Now we hear talk of a new “social breakthrough” with the hypothetical reduction to the working day, when in reality the proportion of employees working unpaid overtime is even higher today than before the 2019 labour reform.
The government boasts of economic growth that is in reality based largely on speculative investments (in the property sector), a dependency on tourism (which accounts for 13% of GDP) and the profits arising from the extreme exploitation of workers, mainly those with immigrant origins.
A government for peace?
As a left-wing government, Sánchez's administration tends to hide its commitment to exploitation and war behind “national solidarity” and pacifist pretentions. This was the case at the recent NATO summit, where the president ‘stood apart’ from other leaders, seemingly dissociating himself from the frantic race to war and the increase in military budgets. But the truth is that, a few months earlier, this ‘progressive’ government had agreed to increasing its military expenditure by 2.5% of GDP (nearly 41 billion euros), further increased with a Plan for Industrial Defence (an additional10 billion euros) and a commitment to invest an additional 34 billion euros in future years.[3] A few weeks later, Pedro Sánchez personally announced a plan to increase military manpower from 116,000 to 140,000 over the next eight years.
With sickening cynicism, Sira Rego, Minister of Youth and member of the most left-wing party, SUMAR, said: “It would be contradictory to have to choose between developing a social programme and military spending, and to see hospitals and schools closing, and to see the future of our generation threatened by the accumulated production of weapons”. But that is exactly what they are doing with a freeze on aid to people dependent on it and by encouraging workers to take out private health insurance owing to the decline of the public health system. They are also making a lot of teachers redundant and teachers in Catalonia, the Basque Country, Asturias, Madrid, etc. have been actively demonstrating their opposition to these attacks.
A government in favour of migrant workers?
Another characteristic of the propaganda of the left-wing parties of capital is to exaggerate the atrocities of the right wing in order to cover up their own record. This has happened recently, for example, in the United States,[4] as well as in the events in Torre Pacheco in Spain, when the ‘Socialist’ government of Sánchez and its leftist supporters tried to present themselves as being the more 'liberal' by denouncing the xenophobic and racist behaviour of far-right gangs. While the ‘progressive’ government claims to be on the side of the workers, it's only to exploit them better. It tells them to take credit for the ‘prosperity’ in Spain. And how they should take credit! A recent study revealed that migrant workers in Spain earn 30% less than workers with Spanish nationality.[5] With all her hypocrisy, Minister Pilar Alegría said, regarding the attacks on the migrant population in Torre Pacheco: “Our country has nothing to do with these violent individuals who mistreat people under the pretext of defending Spain”.’ And this comes from the spokesperson of a government that is responsible for the Melilla barrier massacre and that negotiates with the governments of Morocco, Mauritania, etc., over the crackdown on those trying to escape wars and chaos.
The left-wing government states that ‘the people’ want it to resist change in order to defend the “social benefits won over decades”. This is a lie hiding the fact that no matter which government is in charge, the only future that global capitalism can offer humanity is that of increasing wars and poverty. The only way to avoid this grim fate is by the working class, mobilising and uniting as a class in its struggle against all factions of the exploiting class. They want us to believe that within the various factions of the ruling class there are some that are ‘more beneficial to workers’ or that they offer a ‘more humane’ form of capitalism. This is the worst kind of deception, used to disarm us in the face of growing barbarism.
Valerio (1 August, 2025)
[1] According to a report by the NGO Save the Children, this is the case for 17% of families. The percentage rises to 33% if they have a child.
[2] The fight against the increase in this type of contract has been at the heart of protests, particularly those by teachers in Asturias and steelworkers in Cadiz. In May 2025, 83% of employment contracts were temporary, part-time or fixed-term.
[3] These are figures from the report by the Delás Centre, the Spanish equivalent of SIPRI (Stockhom International Peace Research Institute).
[4] See on our website the leaflet that we ask you to distribute (June 2025): “Against Trump's xenophobic attacks on the working class and against the slogan of 'defending democracy', the working class must independently develop its own struggle”.
[5] These figures were published in the newspaper El País.