Palma, 10 November 2026 – Antoni Costa, Vice-President and Minister for Economy, Finance and Innovation of the Balearic Islands, defended economic diversification in Parliament as the main response to persistently high prices for staple foods. The occasion was a question session on the affordability of food on the islands.
Costa described a structural problem facing the island economy: high growth alone does not automatically bring tangible prosperity to households. The Government of the Balearic Islands is therefore focusing on innovation, technology and expanding industrial value creation to reduce dependence on a few sectors. He also stressed that such a transformation takes time and should not be judged from one legislative term to the next.
On short-term relief, Costa pointed to support measures already approved to soften price spikes, which, according to the regional government, were also exacerbated by the conflict in the Middle East and rising energy and transport costs. Further discussions with business and social partners about additional measures had been held. However, no specific new steps were approved in the debate.
Opposition MPs criticised the fact that many families could barely afford fresh produce and called for measures that would have an immediate effect. Tax relief was among the proposals. Costa countered that any changes to VAT were not within the exclusive remit of the autonomous government and would require coordination with the national level. There were also differing views on how effective fiscal interventions would be in affecting individual consumer prices, and no reliable official evidence of their impact in the current situation was available.
The dispute reflects the particular structure of the Balearic economy and its high vulnerability to external shocks. Over the course of the year, the government had introduced several packages to support households and businesses and stepped up talks with industry and social organisations. The focus is on linking immediate relief with long-term restructuring: easing price pressures without holding back the investment needed in productivity and local value creation.
It is confirmed that support programmes were approved and cross-sector consultations were held. Statements about the future effects of planned measures are part of the political dispute and remain forecasts. The debate in the Parliament of the Balearic Islands brought together both strands – emergency aid and structural policy – without any final decisions on further short-term measures to curb prices.
Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).