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First modification: 02/17/2026 - 03:33

The President of the Spanish Government, Pedro Sánchez, presented the “Spain in Growth” fund, which seeks to mobilize some 120 billion euros for housing, energy and technology. The announcement coincided with the signing of an increase in the minimum wage of up to 3.1% compared to last year, leaving it at 1,221 euros per month, divided into 14 payments.

Spain opened the week with a double announcement of high economic impact: on the one hand, the launch of a new sovereign fund aimed at mobilizing million-dollar public and private investment; on the other, the signing of the increase in the interprofessional minimum wage (SMI), which will benefit 2.5 million workers.

The President of the Government, Pedro Sánchez, was in charge of presenting the “Spain in Growth” fund, a tool that the Executive defines as strategic to consolidate economic expansion after the pandemic and to progressively replace the European resources of the NextGenerationEU program, which expire at the end of this year and from which the Iberian country has been the most benefited in the entire eurozone.

Spain was one of the main beneficiaries of European recovery funds after the Covid-19 pandemic, receiving around 160 billion euros between grants and loans. This boost contributed to the economy growing 2.8% in 2025, almost double the euro zone average, according to official figures cited by the Executive.

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According to the president, the new financial vehicle will start with 10.5 billion euros from community funds, but aims to catalyze up to a total of 120 billion in public and private capital, a figure equivalent to 7% of the country's gross domestic product.

Sánchez framed the initiative as an “exercise of national sovereignty” aimed at strengthening sectors considered strategic.

Priority areas include energy, digitalization, artificial intelligence and security. The Government maintains that the objective is to reinforce economic autonomy in an international context marked by geopolitical tensions and growing technological competition.

Investment to contain the housing crisis

One of the pillars of the plan will be the construction of houses and apartments. Of the 120,000 million planned, up to 23,000 million euros will be allocated to this sector, with the goal of promoting the construction of some 15,000 homes per year to alleviate the real estate crisis. However, the Executive did not specify how many years this rate of investment will be maintained.

"The fund will roll out the red carpet for private investors, but not to speculate on a constitutional right, but to build homes for the majority of citizens who, today, have difficulties, or even the impossibility, of accessing housing," Sánchez explained.

Access to housing has become one of the main social concerns in Spain. In the last decade, the average rental price per square meter has doubled, according to data from the Idealista real estate portal, which has especially stressed young people and middle-income families.

"This energizes the housing supply, to make decisive progress in closing the housing deficit by financing – that is our objective, that is our purpose – the construction of 15,000 homes per year."

Salary increase and corporate anger

In parallel with the announcement of the sovereign fund, the Government sealed the agreement to raise the minimum interprofessional salary (SMI) to 1,221 euros per month, distributed in 14 payments.

The increase, of at least 37 euros per month, represents an increase of 3.1% compared to the adjustment made in 2025 and will be retroactive from January 1.

The measure was agreed between the Ministry of Labor and the unions, and will directly benefit some 2.5 million workers, although it did not have the approval of employers, who consider that the increase was excessive. The new amount will continue to be exempt from taxation, as confirmed by the Executive.

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For his part, the president argued that macroeconomic indicators support the Government's economic policy, highlighting that Spanish GDP growth far exceeds the average of its European neighbors.

In this context, the Executive seeks to combine massive investment in strategic sectors with salary improvements to sustain domestic consumption and reinforce the growth model.

With information from AFP and local media.

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