Canary Islands economy grows, but environment budget collapses in 2027

The Canary Islands' economy grew by 2.5 per cent in real terms in the third quarter. In the 2027 budget, however, the budget for ecological transition and energy is set to shrink by 68.6 per cent as special EU funding comes to an end.

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The Canary Islands' economy grew by 2.5 per cent in real terms in the third quarter compared with the same quarter last year.
The budget for ecological transition and energy will fall by 68.6 per cent to 142.43 million euros in 2027, as the EU's special funding comes to an end.
Clavijo, President of the Canary Islands, warned the European Commission against centralising funding for outlying regions.

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The economy of the Canary Islands grew by 2.5 per cent in real terms in the third quarter. The Canary Islands Statistical Office ISTAC compares price-adjusted economic output with the same quarter of the previous year. The corresponding volume index stood at 141.55 points.

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The Canary Islands‘ budget plan for 2027 envisages a significant cut in one department. The Ministry of Ecological Transition and Energy will then have more than 142.43 million euros at its disposal. In the current year, the figure stands at 453.64 million euros, meaning the budget will fall by 68.6 per cent. The reason: the extraordinary EU funding for the Canary Islands‘ environmental budget from the Recovery and Resilience Facility is coming to an end.

The Canary Islands government is also concerned about future funding from Brussels. Fernando Clavijo, President of the Canary Islands, warned Raffaele Fitto, Executive Vice-President of the European Commission, against the centralisation of EU funds for outermost regions. Clavijo opposes the idea of centralising the administration and distribution of funds for the outermost regions within the Member States. He warned that this could weaken the Canary Islands‘ economic decision-making capacity.