Spain is the State of the European Union (EU) that registers the most unequal unemployment rate in the regions that make up the country, followed by France and Italy, as published this Monday by the European Committee of the Regions (CoR).
In its annual report on the state of EU cities and regions, the CoR warns of the “prominent regional inequality” that exists in Spain in terms of employment and points to a gap of 19.8 points in 2022 between the community that has the most work and the least.
The community entity points out that, by the end of 2022, the three European regions with the highest unemployment are Spanish: Ceuta (28.4%), Melilla (21.6%), and Andalusia (19%). Then I will go to Extremadura with 17.62%.
The analysis of the Committee of the Regions, which studied the data of the regions of all the EU countries, concluded that at the current pace, it is “difficult to achieve” in 2030 the objective of the community with at least 78 employed workers. % of EU citizens aged 20-64.
The CoR, which is the consultative body of the EU that represents the regions and cities of the Twenty-seven, also warns that the poorest people in the Union are more likely to have financial problems, a situation compared to the status report that the continent experienced afterward. the 2008 crisis.
“At the same time, income inequality is worsening because of concentration of wealth which prevents equal opportunities and upward social mobility, while fueling political polarization,” the CoR warned, calling for greater collaboration from central governments in regions and cities.
Castilla and Extremadura, are at risk due to population decline
The report of the Committee of the Regions also warns of the loss of young people of working age suffered, in particular, by Castilla y León, Castilla-la Mancha, and Extremadurathree Spanish communities that, according to the CdR, are at risk of becoming what the entity calls a “talent trap.”
Nevertheless, the CdR mentions as a positive example the Castilian-La Mancha law approved in 2021 against rural depopulation, and highlights its “pioneer” character due to the comprehensive approach to the event, with “economic, social and fiscal measures.”
The CoR analysis also places Asturias as one of the most vulnerable regions in Europe for the transition towards a sustainable industry, as a reference to a study by the Organization for Economic Cooperation and Development (OECD), which was published in February 2023.
The OECD sees it as problematic that the Principality has “a high level of employment only in the production of base metals, as well as higher per capita emissions” linked to this sector.
To adapt to the needs of each territory, the CoR calls in the report to “regionalize” the design of reindustrialization plans, processes that can be supported by European post-covid recovery funds.
In this sense, the CoR highlights that Spain is the EU country where local officials are the most involved in the application of post-covid funds, according to a survey carried out in 2023 on 2,907 local and regional officials from all the countries of the Union.
In Spain, 49% of those surveyed said they participated in the implementation of European aid, more than 16% marking the European average, a figure that did not please the Committee of the Regions, which criticized the funds in the post-covid it seems “a blind tool” from the point of view of the territory.
“Allowing States to decide whether or not to involve subnational authorities in designing programs will weaken their chances of success,” the report warned.
Climate change threatens tourism in Spain
The Committee of the Region foresees “detrimental effects” on the local tourism industry in Spain, and in other European countries in the Mediterranean, due to the anticipated increase in global temperatures due to climate change.
The drop in tourist demand could be up to 9% in territories such as the Balearic Islands or Murcia, while the Atlantic communities such as Galicia, Asturias, or Euskadi will better avoid the drop, according to the CdR based on the study of Research Center EU Joint Commission (JRC).
According to a CoR survey, 75% of cities and regions across the EU say they suffer from a lack of specific financial mechanisms to address climate challenges.
According to an estimate by the European Environment Agency, Europe needs €40 billion a year to adapt to an increase in global temperatures of up to 1.5 degrees above 1990 levels.
In the worst scenarios, this figure rises to 120 billion euros and 200 billion euros per year to adapt to a temperature increase of 2 degrees, or between 3 and 4 degrees, respectively.
