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Coverage of this week’s seismic election result in Germany focused on the disturbing rise of the far right, and chancellor-in-waiting Friedrich Merz’s warning that Europe can no longer rely on the United States for its security. But for European progressives, there was also a third depressing takeaway: the comprehensive rejection of Olaf Scholz’s Social Democratic party, which recorded its worst postwar result.
Across the continent, centre-left parties have been exiled from the corridors of power, while the radical right has fuelled anxieties over immigration and economic stagnation to extend its influence. There is, however, one startling outlier to this dismal trend. Last year, Spain recorded the highest growth of any major country, at 3.2%. This was achieved under a Socialist-led coalition government that has welcomed high levels of immigration as a driver of economic prosperity, and which from this year plans to offer residency and work permits to up to 900,000 undocumented migrants. In 2024, over 400,000 vacancies were filled by migrants and dual nationals, as overall unemployment figures fell to their lowest level since the 2008 crash.
The case for migration in a country with one of the lowest birthrates in the European Union – forcefully made by the prime minister, Pedro Sánchez – has been complemented by a commitment to generous public spending that is also at odds with the zeitgeist. Boosted by EU post-pandemic recovery funds, levels of government expenditure reached an all-time high at the end of last year. Most of the money has gone on upgrading vital infrastructure and green investment, including urban low-emission zones and subsidies for small businesses.
On the European stage, too, Spain is blazing a progressive trail. As crucial negotiations over future EU spending begin, Madrid has proposed a doubling of the next seven-year budget, financed by joint borrowing mechanisms pioneered after Covid. In an era in which spending on defence risks diverting resources away from other public goods and the green transition, Mr Sánchez is right to argue that more Europe, not less, should be part of the solution.
Panglossian hyperbole should be avoided. An important factor boosting Spain’s growth has been the booming tourist industry, which is creating tensions in cities and resorts hollowed out by Airbnb. A related housing crisis urgently needs to be addressed. And interpreting to what extent impressive GDP figures translate into general wellbeing is far from straightforward.
Nevertheless, at a time when much of the mainstream centre-left appears to have lost faith in progressive political solutions, the Sánchez government’s achievements deserve to be celebrated. A robustly social democratic approach to economic renewal, and a recognition of what migrants can offer ageing societies, remains the best response to the rise of nationalist, xenophobic politics.
When unveiling his government’s plans to make it easier for migrants to settle last October, Mr Sánchez commented: “Throughout history, migration has been one of the great drivers of the development of nations, while hatred and xenophobia have been – and continue to be – the greatest destroyer of nations. The key is in managing it well.”
It has become vanishingly rare to hear political leaders not only making such an argument but also acting on it. This may be a moment of maximum hubris for the Trumpian right across the west. But Spain continues to show that there is another way.
