Barcelona’s City Council has closed its 2025 accounts with a significant €51.8 million surplus. This marks the third consecutive year of positive financial results, signalling a firm recovery from the economic pressures of the pandemic. The administration, led by Mayor Jaume Collboni, also achieved a record budget execution rate of 96.4% and substantially reduced the city’s debt, bringing it below the €1 billion threshold for the first time since 2022.
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Deputy Mayor for Economy and Finance, Jordi Valls, announced the results on Wednesday, presenting a positive balance sheet for an administration that operated on a rolled-over budget from the previous year. The city’s total non-financial expenditure reached €3.648 billion, marking a 3.4% increase in execution compared to 2024. This strong performance places Barcelona in a robust financial position, earning high marks from economic analysts for its fiscal health.
A Closer Look at the Numbers
The detailed budget closure reveals a disciplined approach to public funds. The city’s debt now stands at €942.4 million, a notable decrease from the €1,035.7 million recorded at the end of 2024. Consequently, the debt-to-current-income ratio has fallen to 25.5%, well below the legal limit of 35% and its lowest in six years. This reduction follows the Council having to increase its debt by over €250 million between 2020 and 2022 to manage the financial fallout from the COVID-19 crisis.
Total new investments in the city amounted to €654 million, a figure similar to the previous year. The municipal services company, Barcelona de Serveis Municipals (BSM), channelled 48% of these funds. Additionally, the city maintained its reputation as a prompt payer, settling invoices with suppliers in an average of 21.6 days, comfortably inside the 30-day legal requirement.
“We are investing more than ever, executing more than ever, we have reduced the house’s debt… and we pay our bills on time,” Valls stated during the press conference, as reported by La Vanguardia. “We have executed almost 4 billion euros, an amount that Barcelona had never executed before.”
Surplus Funds Tied to Debt Repayment
While the €51.8 million surplus is the largest since 2019, Spain’s budgetary stability law constrains its use. This legislation obliges municipalities to allocate any surplus primarily to reducing financial debt. Valls acknowledged this “rigidity,” expressing a desire for more flexibility to use the funds for other city projects, from major works causing disruption in Poble-sec to enhanced public services like the new Ciutat Vella cleaning plan.
“If there are no changes [to the law], we will have to continue with amortisation; if not, we could make use of the surplus,” Valls explained. The Council is awaiting new directives from the Spanish government that could potentially alter these rules.
European recovery funds have partially supported the city’s improved financial capacity in recent years. Although this funding stream will diminish, Valls expressed confidence that the Ajuntament de Barcelona can maintain its high level of investment using its own resources. This financial stability is crucial as the city navigates a volatile international context and contrasts with the budgetary challenges faced by the regional government, which is currently in a tense showdown over its 2026 spending plans.
Valls concluded by highlighting Barcelona’s resilience and enduring appeal, which he argued is underpinned by its economic stability. This strength, he noted, is why the city continues to attract major international events like the Mobile World Congress, providing a significant boost to the local economy.
