European Commission and REFOR 3 June 2026, COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Spain Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Spain

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This Commission Staff Working Document constitutes the 2026 Country Report for Spain, issued pursuant to the European Semester process and accompanying a Council Recommendation on Spain's economic, social, employment, structural, and budgetary policies. The report assesses Spain's macroeconomic performance, fiscal sustainability, labour market conditions, social fairness, housing, innovation, green transition, and regional disparities, identifying persistent structural challenges including high child poverty, low R&D investment, housing affordability deficits, skills mismatches, and regulatory fragmentation across autonomous communities. The document sets out country-specific recommendations addressing, inter alia, tax system reform, defence expenditure, pension sustainability, water management, energy grid resilience, and compliance with EU Single Market directives.AI