Andalucía Achieves Debt Reduction and Improved Credit Ratings Amid Financial Management Efforts
Andalucía reduces public debt and improves credit ratings through stringent financial management.
- • Andalucía's per capita debt is €4,801, significantly lower than national average.
- • Debt-to-GDP ratio stands at 19%, below the national average.
- • Moody's upgraded Andalucía's credit rating to A3, indicating improved financial stability.
- • The regional government seeks financial autonomy by 2026, calling for reforms in the funding system.
Key details
Andalucía has made significant strides in reducing its public debt and enhancing financial stability, according to the regional government. On October 3, 2025, Carolina España, the Minister of Economy, Treasury, and European Funds, announced that the region boasts one of the lowest debt levels in Spain, with a per capita debt of €4,801, compared to the national average of €7,050 and Catalonia's €11,320. Moreover, Andalucía's debt-to-GDP ratio stands at 19%, below the national average, marking a reduction over the past seven years.
In a notable recognition of its financial management, Moody's has upgraded Andalucía's credit rating to A3, matching Spain's rating, which is expected to improve the region's access to financial markets and attract investments. España emphasized that this achievement reflects a stringent, responsible management of public resources, allowing the region to sustain its obligations without accumulating excessive debt.
By 2026, Andalucía aims to attain full financial autonomy, ceasing reliance on the Autonomous Liquidity Fund, and intends to independently finance its needs in favorable market conditions. However, España also raised concerns over the existing autonomous financing system, arguing that it costs the region about €1.528 billion annually due to unfair allocations. She urged for reforms in this system to ensure equitable treatment for Andalucía while dismissing any proposals for debt forgiveness that would reward mismanagement.