<![CDATA[Ara Balears in English - Economy]]> 10 <![CDATA[When we grow too much: Keynes's lesson that the Balearic Islands cannot forget]]> In the Balearic Islands, we don't just have a growth problem. We have a problem with how we manage it. This debate is often presented as a discussion between more intervention or more market. But that's not the issue. The issue is when, how, and with what limits each policy is applied.John Maynard Keynes is remembered as the economist who advocated public intervention in times of crisis. But his central idea is more uncomfortable than is often presented: to be able to spend when everything is falling, you must first have been able to not spend when everything is growing. This is the part we have forgotten.In the years leading up to 2008, public revenue increased sharply. However, a significant portion of this income did not reflect structural economic growth, but rather an exceptional moment in the real estate cycle. The income was high, yes, but unstable. The problem was not spending. The problem was spending as if that income were permanent.This is not a one-off anomaly. It is a recurring pattern. When public revenues grow rapidly, the illusion is generated that more spending can be permanently sustained. But part of these revenues depends on exceptional factors – prices, credit, activity concentrated in certain sectors – that cannot be maintained over time. Spending, on the other hand, does remain. And this is where the problem begins.When the cycle turned, revenues plummeted as quickly as they had grown. And with them, the fiscal margin.At that moment, an expansionary policy was attempted to compensate for the fall in private demand. It was coherent. It was necessary. But it was not viable on the terms that the situation demanded.The increase in the deficit, market distrust, and tension over public debt forced a premature adjustment. Keynesian policy was interrupted ahead of schedule. And the cost was transferred to the real economy: job destruction, business closures, a deeper recession than would have occurred with sufficient fiscal margin.The theory had not failed. What had failed was the moment when it had been decided to be prudent.This pattern is not exceptional. It is recurrent. In expansion phases, extraordinary income is incorporated into the budget as if it were structural. Spending grows on this basis. And when the cycle reverses, the system is left without the capacity to respond.The problem is not ideological. It is institutional. No government –of whatever stripe– has incentives to contain spending when all is well. It is much easier to spend current income than to reserve room for future crises. But without this room, counter-cyclical policy becomes theoretical.In territories like the Balearic Islands, this dynamic is even more accentuated. A significant portion of public revenue depends on sectors very sensitive to the cycle, such as construction and tourism. This makes the good years very good… and the bad ones much more difficult to manage.The question is not whether the public sector should intervene in a crisis. It is whether it will have the real capacity to do so. And this capacity is not decided in the recession. It is decided in the good years.The debate about economic policy is often framed in terms of more or less intervention. But perhaps the relevant question is another: are we capable of designing rules that compel us to be prudent when we don't need to be? Because, without this discipline, fiscal space does not disappear by accident. It disappears by design. And then, when the crisis arrives, it is already too late.Being Keynesian is not just knowing when to intervene when the economy falls. It is knowing not to spend when the economy grows.

]]> <![CDATA[The families of Pla have saved 20.4 million with the elimination of inheritance taxes]]>

Up to 2,000 people or families from the 14 municipalities of Pla de Mallorca have saved a total of 20,412,525 euros since the Government of the Balearic Islands launched fiscal measures at the beginning of the legislature, such as the elimination of the inheritance tax or tax on inheritances, and the elimination of the property transfer tax on the purchase of the first habitual residence.

]]> <![CDATA[Why don't we change the economic model]]>

A group of magnificent columnists are writing collectively this week what many of us think: it is urgent to change the economic model of the Balearic Islands. We all understand that this implies reducing a few million tourists and starting to truly bet on the primary sector and industry.

]]> <![CDATA[Mallorca, getting out of the labyrinth (The essential change of the productive model)]]>

The media play a primary social role and, moreover, hold high democratic value because they contribute to the formation of public opinion. Based on this premise, out of a sense of responsibility and moved by feelings of esteem, respect, and service to the land and citizens of Mallorca, a group of contributors from the three print dailies published on the island (ARA Balears, ‘Diario de Mallorca’ and ‘Última Hora’) have come together to publish this article. The aim is to call upon all political parties, the bodies with the power to modify the current state of affairs – particularly, self-governing institutions and town councils –, as well as, in general, all economic and social powers, capable of conditioning and influencing decision-making, for a radical, progressive, and measured, yet firm, change in the current economic model.

]]> <![CDATA[Mallorca's hoteliers expect 70% occupancy this Easter.]]>

The Majorca Hotel Business Federation (FEHM), based on information gathered from hotel associations and affiliated chains, forecasts an average occupancy rate of around 70% for this Easter week, in line with last year's results. These forecasts come in an international context marked by geopolitical uncertainty, although the hotel sector highlighted the stability of tourist demand for Mallorca thanks to the strength of the destination. The hotel opening rate will reach 92%, two percentage points higher than last year, confirming the consolidation of the early season and the progressive expansion of the tourist calendar.

Sources at FEHM insist on the need to "remain cautious" given the current international context, marked by constant changes and a geopolitical situation that requires "continuous monitoring due to its effects on the economy and international mobility." They also reiterate the message conveyed during ITB Berlin, stating that "the sector's wish is for the armed conflicts and human suffering in both the Middle East and Ukraine to end as soon as possible."

]]> <![CDATA[Not only the what, but also the how]]> In my latest article, 'Beyond Growth', It argued that we live trapped in the capital-life conflict: a structural tension that transforms the economy into a machine of perpetual extraction while eroding the material and social foundations that sustain existence. This is the daily reality of an accelerated, precarious, and ecologically overwhelmed world, in which emergencies become chronic and politics often manages the symptoms while protecting the causes.

]]> <![CDATA[The Balearic Government will create a seal for products made in the Balearic Islands with ingredients from outside the islands.]]>

The Balearic Government is working on a new label, "Product Made in the Balearic Islands," which will allow manufacturers to promote their products made in the Islands, even if they use materials and raw materials from elsewhere. The initiative comes after current regulations on local products require that at least 50% of the ingredients be from the Islands for a product to bear the "Product of the Balearic Islands" label. This criterion, which many in the production sector fully understand, excludes many products made in the archipelago but with raw materials from elsewhere. This is the case, for example, with certain cheeses made with imported milk, cookies made with foreign flour, and traditional almond and coffee products that are made with imported ingredients. Although these products have a manufacturing process entirely rooted in the Islands, current regulations prevent them from obtaining official recognition as local products. According to the Director General of Industry, Alfons Gómez, the Balearic Government has made significant progress on the draft of the new seal, which "will allow, for example, a bleach producer to highlight that the process was carried out in the Islands, even if the ingredients used are not." In such a small territory, "it's not easy for raw materials to come from the Balearic Islands, but if processors add value, as is the case with many well-known brands, it's absurd that this cannot be recognized," he told ARA Baleares. "It's possible to differentiate between products with local ingredients and products made in the Islands, with a transparent system that reflects the production phase that does take place in the archipelago," he added. The measure aims to recognize and promote industrial and artisanal activity in the Balearic Islands and make it easier for consumers to identify products made in the Islands, even if they don't meet the 50% local ingredient requirement. It also aims to enhance the visibility of the work of local producers and boost the food and manufacturing industry of the Archipelago. considered by most experts as a catalyst for change in the current economic model, based on tourism monoculture.

]]> <![CDATA[Samuelson, Friedman and the politics of labels]]> Do we really believe that the economic problems of the 21st century can be solved by choosing between two T-shirts?

]]> <![CDATA[The frog inside the water bath]]> The Fitur tourism fair, Spain's main tourism trade fair, traditionally serves as a platform for the island authorities to present the season's results and boast about their achievements. This year's figures are particularly triumphant, if by triumph we mean having received more tourists than ever before—some 19 million, a new record. Congratulations! You can read the exact figures in the... Chronicle by Maria Llull for ARA Baleares.

]]> <![CDATA[Avoid the avoidable]]> The start of a new year is usually accompanied by numerous analyses and predictions about what will happen. In some cases, guessing is easy; in others, the uncertainty is almost absolute, especially regarding things beyond human control, like an earthquake. On the other hand, what depends on our will is easier to predict, and when something is going wrong, it should be avoidable, at least in theory. But not everyone understands this because there are events or processes that depend on our decisions and yet are perceived as inevitable.

]]> <![CDATA[The Balearic Islands account for nearly a quarter of Spain's private boat rental market.]]>

The Balearic Islands maintained their leading position as the main market for recreational boat registrations in Spain in 2025, despite a year-on-year decrease in activity, according to a market report prepared by ANEN using data from the Directorate General of the Merchant Marine. Of the 1,418 boat rental registrations nationwide, the Balearic Islands accounted for 321 vessels for this activity. Thus, the Balearic Islands lead the national market and concentrate nearly a quarter of the total charter market, despite experiencing a 23.2% drop. Following the Balearic Islands are Barcelona, ​​with 194 registered units, and Alicante, with 171.

]]> <![CDATA[The real economic challenge: knowing when to say enough]]>

The Balearic Islands in the 21st century are putting economic theories to the test. While the principles established by theorists generally speak of growth, of going further, in the Islands right now the only thing increasing is the consensus on the need to change course and reduce. Depending on the organization or specialist consulted, the proposals and prescriptions for the future vary between decreasing or maintaining current passenger numbers. But in no case—not even the accommodation sector—is there a proposal to increase arrival statistics. The economic challenge for the Balearic Islands in 2026 has a name: knowing when to slow down and set limits.

]]> <![CDATA[Let's talk about housing]]> The UPC's Centre for Land Policy and Valuation has published the study Five theses on housing policy in SpainPrepared by professors Blanca Arellano-Ramos and Josep Roca-Cladera of the Barcelona School of Architecture (ETSAB), these five theses dismantle the PP-Vox arguments regarding the neoliberal housing policies they advocate. Let's examine them:

]]> <![CDATA[For a minimum wage typical of the Balearic Islands]]> Article 16 of the current Statute of Autonomy of the Balearic Islands urges the regional public authorities to defend and promote the social rights of the citizens of the Balearic Islands. It is certainly one of those declaratory provisions whose impact and implementation depend on the political will of institutional bodies and non-institutional actors. In other words, the explicit absence of a specific statutory competence does not prevent the Government, Parliament, political parties, economic and social stakeholders, organized civil society, etc., from promoting debate and considering expanding self-governance capabilities to address the specific problems of the citizens of the Balearic Islands.

]]> <![CDATA[From genuflection to tourism to questioning its excess in a quarter of a century]]>

March 14, 2001. The ITB Berlin tourism trade fair was just days away, and there was great anticipation surrounding it because the sector was intensely engaged in the debate about implementing a tax on overnight stays for visitors. It was one of the major campaign promises of the Socialist president, Francesc Antich, who had broken the right-wing hegemony in 1999. Hoteliers had been criticizing the initiative for months, even claiming that its implementation would have devastating effects on demand. The then-president of the business association, Pere Cañellas, said: "If the mere announcement of the project already causes alarm, the consequences of its implementation could be disastrous." This opposition generated a climate of political and social tension, since while many saw the ecotax as a tool to transform tourism in the Balearic Islands towards a more sustainable model, hoteliers felt it as a threat to their profitability. The tension was extreme. Not only because, according to the sector, it went against business, but because "they considered it interference. They didn't like a government, much less a left-wing one, making decisions that affected the sector," recalled Celestí Alomar, then Minister of Tourism and at that time a public enemy of the sector. But let's return to Berlin. In the midst of a crossfire between the government and the hoteliers, the GOB spokesperson, Miquel Àngel March, surprised everyone by calling a press conference at none other than the headquarters of the German federal government. German and foreign media listened to the explanations of the environmental leader, based on a very comprehensive report: "We have gone from 5.9 million tourists in 1991 to almost double that, 11 million, in 2001. The consumption of resources caused by this runaway growth is unsustainable, and you will be aware of it." That's why March was calling on the international press for "a tax to mitigate the impacts of this activity, which is not an attack, but a tool to guarantee environmental conservation and the quality of tourism." That visit to Germany still held one more surprise: a meeting with members of the German Ministry of Finance, where the environmentalists presented the draft ecotax law translated into German. One of the masterminds behind that trip, Gerald R. Hau, a geographer and member of Euronatur, recalls that "it was a significant move. The Antich government had courage, but great inexperience. Our action ensured that the entire German press saw the rigor of the GOB's analysis and that the measure wasn't a whim. Germans will be happy to pay for the environmental benefits." "When we returned to Mallorca, we met with Antich's government and confirmed that the decision to implement it was already irreversible. We modestly contributed to its approval by demonstrating that the hotel industry's alarmist claims were unfounded. Look what ended up happening. In retrospect, it's laughable."

]]> <![CDATA[The transformation]]> A few weeks ago, GOB Mallorca took advantage of the opportunity afforded to civil society to "occupy" the Parliament building to engage in politics. Yes, to engage in politics, which is what we do every day through our activism, our daily lives, and also, obviously, through grassroots, popular organizations, what are called social movements or organized civil society. Not partisan politics, but politics in the broadest and most social sense of the word, deployed with its full potential.

]]> <![CDATA[Unemployment falls by almost 3% year-on-year in the Balearic Islands in December]]>

Registered unemployment at public employment offices in the Balearic Islands fell by 914 people in December compared to the previous month (-3.02%) and by 887 people compared to the last month of the previous year (-2.94%), ending the year below 30,000 unemployed (29,305), according to data published by the Ministry of Social Labor. At year-end, the sectors with the most unemployed were services (22,323, down 850 from November, a decrease of 3.67%) and construction (3,181, down 23, a decrease of 0.72%), while the sectors with the fewest unemployed were agriculture (1,245, down 33, a decrease of 2.58%).

]]> <![CDATA[Menorca enters hibernation]]>

More than half of the shops, bars, and restaurants in the center of Ciutadella are already closed. The tourist season officially ended three weeks ago, and Menorca has gone into hibernation. The airport now only offers direct flights to Barcelona, ​​Madrid, Palma, Valencia, and London, and the island has lost 20,000 inhabitants in just eight days. The population has plummeted from over 110,000 at the end of October to a mere 90,000, according to the Menorca Socio-Environmental Observatory (Obsam) since the beginning of November. The island currently has 13,000 fewer residents than the 103,281 recorded in the last official census. "The population decline is more abrupt at this time of year than before the season began," notes David Carreras, director of Obsam.

]]> <![CDATA[Terranostra, a supermarket against the system]]>

"It's essential to understand that if we want to improve society, we must get involved in building economic alternatives." These are the words of Jordi López, president of Mercado Social Illes Balears. Getting involved means not only reflecting on our consumption habits but also participating in collective enterprises that are committed to a different way of doing things. Hence the importance of a small but significant business like Terranostra, the only cooperative supermarket in Mallorca, which goes beyond simply being a retail establishment: a large portion of its 600 members work in the store for two and a half hours a month, and, moreover, they all make the decisions that affect the cooperative. Defending local products, the land, and the dedication of farmers, as well as recognizing that consumption is crucial to the functioning of the world, are two of the driving forces behind the creation of Terranostra, which opened its doors after years of assembly-based work to lay the foundations of the project. In addition to the members, the project also employs two people. Over the years, the company has demonstrated its economic viability and is no longer operating at a loss: sales and the number of members have increased, and relationships with some seventy local suppliers have been strengthened.

]]> <![CDATA[The relative weight of tourism, the real weight of everything]]> The latest data suggests that tourism has lost relative weight in the Balearic economy. But an honest assessment is necessary: it's not that there's less tourist activity or that the pressure it exerts on the territory has decreased. Other sectors have grown even more, and many of them are closely linked to the same model. The real estate business, construction, commerce, and domestic consumption resulting from population growth dilute tourism's percentage share. But the fact that the sector weighs less proportionally is no consolation.

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