The Spanish public debt, which had exceeded 124% of GDP in 2021, has fallen to 99.9% of GDP as of July, according to the Bank of Spain. In contrast, the French public debt is expected to rise to 119.3% of GDP by the end of the year, according to the French Ministry of Finance. Spain has not implemented an austerity plan since 2023 and has not passed a budget since 2023, yet it has managed to reduce its public deficit to 2.4% of GDP this year. This gives Spain more maneuvering room than France, which is struggling to stabilize its own debt. Spain has been able to reduce fuel taxes in response to rising fuel prices, after lowering the VAT from 21% to 10% in the spring and obtaining an EU exemption in September that allowed it to reduce excise duties below the minimum set by the EU. This measure cost more than 2 billion euros, but Paris, facing a higher deficit, has so far refused to adopt it, preferring targeted aid instead. Spain's fiscal situation not only allows Madrid to borrow at a lower rate than France, but also gives it more flexibility to cushion the shocks affecting purchasing power. According to Jesus Castillo, an economist specializing in southern Europe at Natixis, Spain succeeded in reducing its debt-to-GDP ratio by withdrawing pandemic-related aid faster than France did and because of stronger growth. Spain has taken on the role of the "economic engine" of Europe, with a projected growth rate of 2.3% in 2026 compared to 0.4% in France. This means that Spain has managed to reduce its debt-to-GDP ratio by increasing the denominator (GDP) faster than the numerator (debt), making the weight of its debt more bearable. However, there is no real structural effort to consolidate the budget, which could pose problems in the future for funding major challenges related to an aging population. Spain has not been spared the repercussions of the conflict in the Middle East (inflation reached 4.3% in August), but its economy remains vigorous because it is more oriented towards domestic demand. "It is less sensitive to the global environment, especially because the weight of its industry is less than that of some of its neighbors like Germany or Italy," confirms Jesus Castillo. Its growth is particularly driven by the health of services, especially tourism, which generated record revenues of nearly 135 billion euros last year (+6.8%). Even though its industry is less significant, Spain has a competitive advantage over its neighbors in this sector: much lower labor costs for equivalent levels of qualification. There, an hour of work in industry cost an average of 27.70 euros. That was 32 euros in Italy, 46.3 euros in France and 48.8 euros in Germany. The average for the European Union was 33.90 euros. This inexpensive labor is also found in other sectors of the economy. To address staffing shortages in food service, construction, logistics or health, Spain has relied on hundreds of thousands of foreign workers, mainly from the Americas, which has boosted employment. "In the last three years, more than 60% of the jobs created were filled by foreign labor," says Jesus Castillo. Between 2019 and 2025, the working-age foreign population increased by 39%, according to a note from the French Treasury, and this category contributed two-thirds of the growth in the country's active population during the period. Another study by the Funcas bank estimates that the integration of foreign labor explains 47% of the cumulative growth of GDP between 2022 and 2025. These job creations have supported the engine of Spanish growth, namely domestic demand and therefore consumption, which in turn boosted business activity and contributed to new job creations. Not to mention the 163 billion euros of the European post-Covid recovery plan (the second largest beneficiary), which fueled investment in the country. "We have a kind of virtuous circle," summarizes Jesus Castillo, recalling that the structurally high unemployment rate on the other side of the Pyrenees has nevertheless fallen below 10% for the first time since 2008 at the beginning of the year. Could France draw inspiration from the Spanish recipe to restore its public accounts by mainly relying on a boost in growth? This seems unlikely given the structure of its economy and the extent of the drift in its finances, which will likely require "activating all levers," that is, reducing spending and increasing taxes, estimates Jesus Castillo. All while being careful not to break the little growth we have left with a too abrupt fiscal adjustment.