5.5. Structural determining factors linked to governance

The Basque Country stands out for its lower weight in the public sector, the higher degree of decentralisation, and the quality of public institutions

Lastly, there are a number of elements linked to governance which could also be considered structural conditions for development. The first of these elements, shown in Table 19, is the size of the public sector in the region. Whereas in the case of the Basque Country, it is smaller than the European average, the opposite is true in the reference regions. In contrast, they do coincide in the degree of decentralisation, and therefore, in the capacity of subnational governments to implement policies. In both cases, this is higher than the European average, quite markedly so in the case of the Basque Country. They also coincide as regards the quality of these institutions, which is also above the European average, quite clearly so in the Basque Country.

Table 19. Governance indicators representative of structural conditions.
Table 19 Governance indicators representative of structural conditions.
Source: Eurostat, BAK Basel Economics and European Commission. Compiled by authors.