Changes

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</ul></div>An overall assessment of these figures allows sketching some general lines of interpretation. Firstly, the high degree of specialisation in tourism in the Balearic Islands (Illes Balears) and the Canary Islands (Canarias) extended throughout their entire economic and social structures, including employment. This factor seriously limited the capacity of the public administrations to act by undermining their budgetary resources. Secondly, and conversely, diversified regional economies, such as the Region of Murcia (Región de Murcia), Navarre (Navarra), Cantabria and Extremadura, where industry and the agri-food sector account for a sizeable part of the productive structure, proved more resilient to the impacts of the pandemic. Consequently, more attention shall be paid to the productive sectors that are truly essential for the smooth running of society. Thirdly, the difficulties observed in industrial regions, such as Catalonia (Catalunya/Cataluña) and the Basque Country (Euskadi/País Vasco), and those hinged on the tertiary economy, such as the Region of Madrid (Comunidad de Madrid), were probably derived from their intense insertion and, therefore, increased exposure to global economic flows. Furthermore, for the Region of Madrid (Comunidad de Madrid) and Catalonia (Catalunya/Cataluña) [more specifically Barcelona], being the headquarters of large corporations at a time when many were returning negative results entailed significant effects on tax revenue.

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On the one hand, the sharp drop in economic activity forced implementing and extending direct support mechanisms, such as furloughs, which mobilised large amount of resources to cushion the impact of the pandemic on employment and on the business fabric and pave the way for a rapid recovery. On the other hand, basic public services, such as health and education, required additional funding to serve the population directly affected by the disease, roll out a mass vaccination programme, and ease non-face-to-face teaching modes and smaller student/teacher ratios.

Within Spain, this rise in public deficit entailed a further increase in the cumulative debt of the regions in relation to their Gross Domestic Product (GDP). This ratio had been stabilising or even slightly decreasing after the peak from 2015 and 2016 (see the map on the Cumulative public debt of the Regional Administrations). Just as there are disparities between the different EU states, also the different Spanish regions show sharp contrasts. In some, such as the Region of Madrid (Comunidad de Madrid), the Basque Country (Euskadi/ País Vasco) and Navarre (Navarra), the debt did not exceed 20% of GDP in 2020 and indebtedness with the national administration was non-existent. Others, such as the Region of Valencia (Comunitat Valenciana), are in debt to the tune of nearly 50% of their regional GDP, and four-fifths of this debt is owed to the national Public Treasury. These historical disparities in regional debt levels, which were further sharpened by the pandemic, may largely be explained by regional differences in income per capita, tax bases and the complexity of the tax revenue distribution system between the different regions in Spain.