European Monarchies: Are They Really More Expensive Than Republics? A Revealing Analysis

European monarchies have been the subject of criticism regarding their budgets and the expenses associated with their functions. However, a deeper analysis reveals that, compared to republics, the cost of maintaining these institutions may not be as high as commonly thought. In fact, the budget for the monarchy in Spain is, by far, the lowest in Europe, a reality that often gets overshadowed by the spotlight of public controversy. With a budget of 8.43 million euros in 2023, the Spanish Royal Household occupies the last position in the list of European monarchical costs. This expenditure represents a modest 0.01% of the national GDP and 0.006% of the state budget. In contrast, other monarchies like Belgium and Sweden have annual budgets of 12.5 million and 13 million euros, respectively. Nevertheless, the real spending is observed in republics, where the costs of maintaining heads of state often exceed those of monarchies. For example, the budget for the German presidency hovers around 20 million euros, while France's budget rises to over 100 million. This raises the question of whether these expenses are truly extravagant or, conversely, necessary to ensure the high representation that these institutions provide, both domestically and internationally. While many argue that a monarchy may seem anachronistic, the cost of its maintenance appears comparatively more reasonable. The recent history of the British monarchy also offers an interesting perspective on the issue. Since the abolition of the civil list in 2011, the "Crown Estate" has provided the British Crown with £240.2 million, of which 15% is allocated to fund the monarch's activities. This money comes from taxes, underscoring that monarchies are not exempt from the fiscal responsibilities they share with other state institutions. The notion that the monarchy is an expensive luxury for society is challenged when exploring how the costs associated with royalty are distributed. In Spain, the salary of the Kings accounts for only 6.4% of the total budget of the Royal Household, meaning that most of the funds are allocated to other aspects of the institution. Additionally, strict controls on gifts and presents contribute to greater transparency and accountability in resource management. The Spanish monarchy, unlike others in Europe, also benefits from a regulatory framework that limits the acceptance of gifts and favors, reinforcing the idea that its functioning is designed to preserve the dignity and political neutrality of the institution. In comparison, the situation in other monarchies may be less regulated, which could lead to misunderstandings about the use of public funds. When observing the budgets of different heads of state in Europe, it is evident that the monarchy is not, in absolute terms, the most burdensome. In fact, in many cases, the expenses associated with republic presidents exceed those of their monarchical counterparts. This poses a dilemma for those who criticize the existence of monarchies: why is so much attention focused on the actual spending of royalty when the costs of the presidency are notably higher? The monarchy, in essence, represents a distinctive aspect of a country's cultural and political identity. While some argue that its existence is obsolete, others see it as a symbol of continuity and stability. This debate about the relevance of monarchies in the contemporary context becomes even more interesting when considering their role in attracting tourism and fostering the local economy. Figures may vary, but the reality is that each European country has decided how to manage its own system of government. The monarchy in Spain, often seen as a relic of the past, can also be considered a bastion of tradition and national identity. Economically, the data suggests that it is not the burden many believe it to be. Thus, the real challenge lies in how institutions, whatever they may be, find a balance between their functions and their costs in a world where every euro counts.