Spain is suffering particularly badly from the global economic crisis and significant fiscal cuts seem unavoidable. On the other hand, Spain remains the poster child of a reinvigorated European research landscape and a remarkable example of how well-directed funding can catalyse the emergence of a world-class research base in a short time.

Even as other equally affected countries, notably the US, inject cash into research to stimulate the economy, many scientists and societies like SEBBM (Spanish Society for Biochemistry and Molecular Biology) are expecting some funding contraction after the 2009 science budget shrivelled from the planned 16% increase to a mere 2.5%. The situation remains confused on the eve of the upcoming budget decisions: on September 24th, the Spanish media reported a 28% overall cut, but a 3% increase for the biotech industry. A day later, science Minister Cristina Garmendia stated that nothing would change. On October 1st, a 14.7% cut (about 300 million Euros) was reported, which even when offset against the biotech spending increase would remain a 3% cut overall (a 13.6% cut was earmarked for the National Research Council, CSIC, which accounts for half the research activity). The following Monday, Spanish premier Rodríguez Zapatero quoted a 0.2% increase for Becas (research fellowships), while cuts would be focussed on grants and lab infrastructure at government research centres (los Organismos Públicos de Investigación, encompassing CSIC). As we went to press, Garmendia reaffirmed on breakfast TV her plans to redirect funds to the biotech industry to increase the number of firms fivefold.

Significant real-term cuts may be unavoidable, although Spain would do well to invest stimulus funds into both basic and applied research, as proven long-term wealth generators. A dramatic re-focus from basic science to biotech incubation would belie a short-term income-generating strategy that should be carefully considered. Industry relies on thriving basic research. Spain has painstakingly built an enviable reputation in basic research, but maintaining this requires reliable funding streams.