Spain beat Portugal 1-0 in the World Cup Round of 16, with Mikel Merino scoring the winning goal deep into added time. The result sends Spain into the quarterfinals and continues their strong tournament. Fans celebrated nationwide after the dramatic late victory.
Podemos leader Ione Belarra announced the party would not support any housing decree that includes tax exemptions for landlords. Junts demands those tax breaks as a condition for backing the decree, creating a political deadlock. The government needs both parties' support to pass the legislation. Without it, rental market reforms aimed at easing the housing crisis remain on hold.
Wage growth remains the ‘weak point’ of the Spanish economy, according to the OECD, with no improvement in purchasing power expected in 2026 or 2027. Low productivity and persistent inflation are holding back real income gains. Unemployment stands at 10.3%, more than double the OECD average. The report warns that living standards for workers will likely stagnate for the next two years.
BlackRock selected Spain as its preferred country for equity investment in the second half of 2026, citing strong fundamentals. The investment giant highlighted 8% economic growth since the pandemic, a current account surplus of 2.2%, and inflation below 3%. The endorsement reflects rising confidence in Spain’s economic stability and may attract further foreign capital.
Economic think tank Funcas raised its 2026 growth forecast to 2.5%, up from 2.2%, while keeping 2027 at 1.8%. The group expects over 900,000 net jobs to be created across the two years, pushing unemployment down to 9.1% in 2026. Public deficit is projected to ease to 2.4%, with debt falling below 97% of GDP by end-2027.
The Spanish government set a non-financial spending cap of €226.03 billion for the 2027 budget, a 6.6% increase from 2026. The limit, which is 88% higher than in 2018, must now clear Congress before the full budget is presented in September. The expansionary budget signals higher public investment in services and infrastructure, pending parliamentary approval.
The PP reversed course in the Senate and reintroduced an exclusion that bars existing pensioners from transferring mutual fund rights to the Social Security system. The measure affects professionals like lawyers and architects, many of whom receive pensions as low as €300-400 per month. The law had previously passed the lower house without this restriction, and the Senate vote keeps the pathway closed for those already retired.
Wildfires have burned 50,384 hectares in Spain from January to July 1, 2026, a 141% increase from the same period last year. Spain accounts for nearly 40% of all EU-wide burned area, with 300 fires recorded. The EU approved €120.55 million from its Solidarity Fund to help cover damage. The fires pose ongoing risks to air quality and property across affected regions.
Households with two or more rental properties have a median annual income nearly four times that of renting households, according to a government-backed study. Their net worth can be up to 450 times higher. The research identifies housing inequality as the main driver of economic disparity in Spain, not age. The findings come as political debate over rent control and landlord taxes intensifies.
Spain’s second heatwave of the season continues, with temperatures topping 40°C in many areas and weather alerts active across most of the country. Aemet expects the extreme heat to last at least through Thursday. Residents are advised to take precautions against heat-related illness, and the prolonged hot spell also heightens the risk of wildfires.
Prime Minister Pedro Sánchez defended Spain’s role in NATO during the alliance’s summit in Ankara and responded to US President Donald Trump’s criticism of allies over the Iran conflict. Sánchez stressed Spain’s ongoing dedication to collective security. The exchange highlighted a tense moment in transatlantic relations.
The DGT issued new instructions requiring motorhomes over 10 years old to pass an ITV inspection every year, and camperized vans of the same age every six months. Vehicles between 4 and 10 years old face inspections every two years for motorhomes and annually for vans. The changes aim to improve road safety and environmental standards. Owners should plan for the updated schedule to avoid fines.
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