Economic Sectors and Regions of the EU and Spain

Posted on Oct 14, 2025 in Geography

Economic Regions in the European Union

The EU states are a diverse group of countries with different economic, social, and demographic characteristics. There are distinct economic regions within the EU.

Key Economic Regions

  • Central and Atlantic Europe: Characterized by high levels of income per capita, this region is the main economic driving force in the EU. It has significant energy resources, good communications, and a strong industrial sector.
  • The Nordic Region: Features a dynamic economy, high levels of income per capita, and an advanced welfare state. There is large investment in technology.
  • Eastern Europe: Marked by low levels of income per capita. It has an obsolete industrial sector, and the primary sector is the most important.
  • The Mediterranean Region: Has moderate levels of income per capita, an important agricultural sector, declining industries, and high revenues from tourism.

Cohesion and Inequalities in the EU

The European Union implements policies through financial mechanisms to promote the development of less-advanced regions and achieve social and economic cohesion.

Types of Financial Mechanisms

  • Structural Funds (Cohesion Funds): These are used to help countries whose Gross National Income (GNI) is below 90% of the EU average to adapt their economies and become more competitive.
  • Investment Funds.

Key European Structural and Investment (ESI) Funds

  • ERDF: The European Regional Development Fund
  • ESF: The European Social Fund
  • The Cohesion Fund
  • EMFF: The European Maritime and Fisheries Fund
  • EAFRD: The European Agricultural Fund for Rural Development

Location of Economic Activities in the EU

Primary Sector

This sector employs very few people (2%). Crop and livestock farming and forestry are very productive due to the use of high-tech methods.

Secondary Sector

Employing 28% of the population, this sector is energy-dependent, highlighting the importance of oil and gas imports. Industrial sectors are very diverse and concentrated in three main regions: Central (Italy, Germany, UK), Mediterranean, and Eastern.

Tertiary Sector

This sector employs 70% of the population. The EU has the densest transport networks and the world’s largest economy. The financial sector is very important, featuring two of the world’s main currencies (Euro and Pound). It also generates more than a third of all the world’s tourism revenue.

Primary Sector Activities in Spain

Location

Due to low precipitation and high average elevation, there are large areas dedicated to crop and livestock farming. Spain’s long coastline also supports an important fishing industry.

Agriculture

Spanish agriculture is commercial, highly productive, and uses high-tech methods.

  • Extensive Non-Irrigated Farming (79% of farmland): Predominant in inland areas with lots of land and low population. Yields have increased due to mechanization and high-tech methods. Common crops include olive trees, vines, and cereals.
  • Irrigated Farming (21% of farmland):
    • Intensive: In greenhouses and open fields, producing multiple harvests each year.
    • Extensive: In open fields, producing only one harvest, but with higher yields.

Livestock Farming

There are two main types: intensive (farmed animals) and extensive (open pastureland). The sector benefits from large investments in veterinary care and animal selection.

Forestry

Spain has many forested lands. The main raw materials obtained in this sector are wood, resin, and cork.

Fishing

The Spanish fishing fleet is one of the largest in the world, and Spain is the largest fish producer in the EU. 70% of production is through catches and 30% through aquaculture.

Secondary Sector Activities in Spain

Mining

The mining sector has seen a decrease in the number of mines, jobs, and general productivity due to three main reasons:

  • The best mineral deposits have been exhausted.
  • The collapse of the construction sector led to decreased demand.
  • Competition from abroad offers lower prices due to high production.

Coal Mining

This sub-sector faces a profitability problem, as it is cheaper to produce electricity using imported coal. It is also affected by the EU’s environmental policies, which are leading to the sector’s disappearance.

Energy Sources

During the mid-20th century, to meet growing demands for electricity, the government opted to use coal and oil as energy sources and opened the first nuclear power stations. Over the last 15 years, renewable energies have become more important for several reasons:

  • Dependence on oil.
  • The EU’s environmental policies to reduce carbon dioxide emissions and diversify energy sources.

The renewable energy boom, combined with a decrease in electricity consumption, has resulted in overcapacity.

Industry

Following a crisis in the 1970s, Spain underwent industrial restructuring in the 1980s. The purpose of this policy was to modernize and adapt the industry to foreign competition and EU demand.

Key Restructuring Actions

  • Unprofitable industries were closed or had their production reduced, leading to an increase in unemployment and social protests.
  • Industrial offshoring: Factories were moved to developing countries with cheaper wages and less strict employment regulations.
  • Urgent reindustrialization zones were established for the creation of new industries.

Characteristics of Spanish Industry

  • Predominance of SMEs: While they find it difficult to compete globally, they generate the most jobs in Spain.
  • Dependence on foreign technology: Spain buys patents, raw materials, and energy from abroad.
  • Presence of large multinationals: These are responsible for most production activity and profits.

Industrial Areas in Spain

  1. Declining industrial zones: Specialize in industries undergoing intensive restructuring.
  2. Dynamic industrial zones: Feature a diversification of industrial activities and the presence of innovative sectors. Most industries are located around metropolitan areas and major transport links.

Main Industries in Spain

  • Food: Located in areas close to raw materials or where consumption is high.
  • Automotive: Export-oriented and dominated by multinationals.
  • Petrochemical: Important for the energy sector.
  • Metallurgy and Iron/Steel: Currently being restructured (Cataluña, País Vasco, and Cantabria).
  • Electricity, Electronics, and Optical Materials: Innovative and very valuable sectors (Madrid, Barcelona, and País Vasco).

Spain’s Tertiary Sector

This sector employs more people than any other, leading to a tertiarization of the economy. The main subsectors are:

Trade

  • Domestic Trade: Characterized by a predominance of SMEs, though large shopping centers are increasing their market share.
  • Foreign Trade: Exports have increased over the last 15 years.

Tourism

Spain is a leading tourist destination, and the number of tourists has increased. This sector is very important for the economy, generating significant income. Features that attract visitors include culture, heritage, weather, beaches, and lower prices.

Transport

  • Ground Transport: This is the predominant mode. The road network has improved over the last 30 years, thanks to EU subsidies.
  • Railway Network: This has also changed, with technical improvements and the introduction of high-speed trains.
  • Air Transport: Essential for the tourism sector.
  • Sea Transport: Based in a few ports specialized in the transport of goods.