The high cost of living and growing inflation mean that Spaniards are still voting with their wallets, even in spite of a relatively high employment rate.
The Watermelon King: Carlos Moreno’s Impact
Carlos Moreno, affectionately dubbed “The Watermelon King,” became a household name in Spain in 2020, when inflation soared to 15% after the COVID-19 pandemic and the Russian invasion of Ukraine.
La Trastienda: A Refuge for Shoppers
His low-cost grocery store, La Trastienda, has been a refuge for Spanish shoppers looking for good deals on goods for almost two years. Moreno provides a straightforward explanation of the situation, saying, “People are not earning enough, so we have to keep lowering prices more and more.”
Economic Struggles Despite Growth
Despite having one of Europe’s fastest-growing economies, many Spaniards still struggle to make ends meet due to the high cost of living. One customer tells Euronews, “Given the current state of affairs, it’s insufficient. You’re looking for a rental apartment but the cost is out of your reach.”
Consumer Concerns
“You just think we all got mad when you see that a liter of oil in the supermarket costs €10,” adds one more consumer.
Higher Costs and More Jobs
With almost 21 million people employed, Spain is presently experiencing its lowest unemployment rate in sixteen years, according to recent statistics.
Economic Discrepancy
However, even though the majority of Spaniards believe that the general state of the economy is favorable, the economy continues to be their top concern, according to a study conducted by the National Center of Sociological Studies.
Broader Geopolitical Uncertainties
According to Jorge Galindo, deputy director of the Centre for Economic Policy at ESADE Business School, broader geopolitical uncertainties can explain this discrepancy between Spain’s overall economic success and unfavorable individual economic circumstances.
Challenges Faced by Spaniards
“We experienced a pandemic and a disruption in the supply chain. We are currently engaged in a battle on European land, and in addition, the upcoming European elections will likely be more important than before. And I believe that everyone can see this,” Galindo clarifies.
Inflation and Employment Statistics
The economic future for many Spaniards remains clouded by inflation, even in the face of encouraging employment statistics. Spain’s inflation rate as of May 2024 is approximately 3.6%, which is lower than past highs but yet significant enough to affect daily living.
Wage Moderation and Purchasing Power
“In Spain, until last year, there was a considerable wage moderation precisely aimed at keeping wages at moderate levels so that inflation wouldn’t rise further,” says Galindo. “And while inflation moderates, there is a perception of a loss of purchasing power.”
Missing Economy in Campaigns
Nevertheless, the economy is noticeably missing from the European parliament campaign, even though it is the primary preoccupation of Spanish voters.
Focus on Other Matters
The discourse from Spanish parties has mostly focused on other matters, including pardoning exiled Catalan leaders like Carles Puigdemont or accusing Begoña Gómez, the wife of Prime Minister Pedro Sanchez, of corruption.
How has the rise in inflation affected the daily lives of Spaniards?
The high inflation rate has significantly impacted Spaniards, increasing the cost of basic necessities and making it difficult for many to make ends meet despite the growing economy.
What role does Carlos Moreno play in the lives of Spanish consumers?
Carlos Moreno, through his low-cost grocery store La Trastienda, has become a vital figure for Spanish shoppers looking for affordable goods amidst the high inflation and cost of living.
Why is there a discrepancy between Spain’s overall economic success and the individual economic circumstances of Spaniards?
Broader geopolitical uncertainties, such as the pandemic, supply chain disruptions, and the European conflict, have contributed to this discrepancy, making individual economic circumstances less favorable.
How does wage moderation affect inflation and purchasing power in Spain?
Wage moderation was aimed at controlling inflation, but it has led to a perceived loss of purchasing power among Spaniards, even as inflation rates moderate.
Why is the economy missing from the European parliament campaign discussions?
Despite being a primary concern for voters, political discourse has focused on other issues like the pardoning of Catalan leaders and corruption allegations, sidelining economic discussions.
