Only two neighborhoods in Madrid and Barcelona affordable for median incomes
A study by Tecnocasa and UPF found that only two neighborhoods in each of Spain's largest cities remain within reach for a median-income household carrying a standard mortgage. Across the country, 30% of people in municipalities over 10,000 residents cannot afford to buy with a loan. In Palma, Madrid, San Sebastián, and Barcelona, 75% of the population lives in areas where housing is unaffordable. The affordable barrios that do exist are peripheral and small, highlighting a crisis that narrows options for anyone reliant on a mortgage.
Trump threatens to cut all trade with Spain, IBEX drops 3%
President Trump ended the ceasefire with Iran, calling the country 'garbage', and threatened to sever all commercial relations with Spain, labeling it a 'horrible ally' and a 'lost cause'. The Spanish IBEX 35 fell 3% to 19,047 points, while oil prices climbed 5%. Nearly €40 billion in Spanish exports to the US are now at stake; bilateral trade in goods and services totaled €75.161 billion in 2025, with Spain exporting €16.716 billion in goods and importing €30.175 billion. Services exports reached €20.144 billion against €8.126 billion in imports. The trade spat adds volatility to markets and clouds Spain's economic outlook.
Supreme Court rejects sending migrant regularization to EU court
Spain's Supreme Court has declined to refer the government's extraordinary regularization of migrants to the Court of Justice of the EU, ruling that such a step is not pertinent at this stage. The court also refused to suspend the policy, which remains in effect. Three conservative judges had questioned the scheme's compatibility with EU law, but the full chamber voted against sending the matter to Europe. The decision keeps the door open for many undocumented foreign residents to gain legal status.
Supreme Court confirms 'hot returns' of migrants at sea are illegal
The Supreme Court has upheld that immediate pushbacks of migrants intercepted at sea — so-called 'hot returns' — are illegal under Spanish law. The ruling involved an Algerian man who was intercepted while trying to swim to Ceuta on November 14, 2024. The court stressed that returns must follow the procedure in article 58.3 of the Immigration Law, which guarantees certain rights. The decision reinforces legal protections for migrants and sets a precedent for border enforcement.
IMF keeps Spain's growth at 2.1%, cuts eurozone on Iran war
The International Monetary Fund maintained Spain's GDP growth forecasts at 2.1% for 2026 and 1.8% for 2027, while cutting the eurozone projection by 0.2% to 0.9% because of the Iran conflict. Global inflation is expected to hit 4.7% in 2026 before slowing to 3.9% in 2027. Spain's relative strength supports job market stability, but rising global prices could still push up living costs for residents.
Spain begins process for first €800M State Housing Plan payment
The Ministry of Housing has started the paperwork to transfer the first €800 million from the 2026-2030 State Housing Plan to regional governments. To receive the funds, autonomous communities must accept conditions that include protecting newly built social housing from speculation in perpetuity. Madrid and Extremadura have challenged the terms in court. The plan aims to mobilize €9 billion in investment, with regions covering 40% of costs.
Sick leave in Spain surges 84% since 2017, costing €33 billion
Episodes of temporary sick leave jumped 84% between 2017 and 2024, from 4.7 million to 8.6 million cases, according to a study by AIReF. Incidence per 1,000 workers rose 60%, and average leave duration increased 15% to 45.9 days. Absences lasting more than a year tripled, while short leaves under three days climbed 141%. The total cost is estimated at €33 billion, fueling debate over potential labor policy reforms.
Wildfires confine 16,900 people in Catalonia during heatwave
Multiple wildfires in Catalonia forced the confinement of 16,900 residents this week as a heatwave swept the region. Fires in Sentmenat, Navarcles, Pla de Manlleu, and Gavà have been stabilized after burning hundreds of hectares. In neighboring Aragón, the Castillonroy fire led to the activation of Spain's Military Emergency Unit. Authorities remain on alert as hot, dry conditions persist.
