Basque Country’s Decentralised Model Shows How to Counter Spain’s ‘Empty Spain’ Crisis

Spanish towns are losing residents, feeding the “Empty Spain” phenomenon, while the centre-right PP proposes tax breaks to lure young buyers to rural homes. The Basque Country, however, tackled a similar challenge after its traditional heavy industries collapsed in the 1980s. In 1990 the Basque government introduced the Territorial Balance Act, spreading industry evenly across valleys, secondary cities like Vitoria-Gasteiz and San Sebastián, and smaller municipalities in the Goierri and Debabarrena regions.

This decentralised strategy created multiple economic hubs, each with its own manufacturing niche, and technical colleges that channel local youth into well-paid jobs at home. The Mondragón Cooperative, the world’s largest federation of worker-owned firms, anchors its enterprises in their founding towns, prioritising job retention and community reinvestment. Although housing costs have risen across Euskadi, the region demonstrates how balanced territorial planning can improve population distribution, wealth sharing, and social cohesion throughout Spain.