⚠️ Italy suspends Schengen with Spain as Ceuta deaths reach 67
Italy suspended the Schengen free-movement regime with Spain at maritime and air borders, effective Saturday, after the mass migrant influx into Ceuta killed at least 67 people. About 50,000 migrants reached the Spanish enclave in recent days. Spain will install buoys at the Ceuta breakwater to create a visual border for express returns, following a Supreme Court ruling. Italian Prime Minister Giorgia Meloni announced the one-month suspension, citing national security, while Spanish Prime Minister Pedro Sánchez called the events a 'violation of territorial integrity'. Travelers between Italy and Spain now face additional checks.
Euribor hits 2.86% as inflation climbs, raising mortgage costs
The Euribor closed July at 2.855%, its highest since September 2024, while eurozone inflation reached 2.9% in July, driven by a 10% surge in energy prices. The combination makes a September ECB rate hike more likely. On a typical €150,000 variable mortgage over 30 years with a 0.99% differential, monthly payments will rise by about €65, or €777 per year. Core inflation edged up to 2.5%. The higher Euribor directly burdens homeowners with variable-rate loans.
Valencia raises wealth tax exemption to €2 million for 23,000 wealthy residents
The Valencian government, led by PP with Vox support, raised the wealth tax exemption to €2 million, meaning roughly 8 out of 10 wealthy residents in the region will owe nothing. About 23,000 wealthy residents are now exempt. The regional government also cut the IRPF for earners above €100,000, and cumulative inheritance and donation tax savings have exceeded €630 million this legislative term. High-net-worth individuals in the Valencian Community stand to see a significant reduction in their tax bills.
Disability pension reviews end at retirement age, Spain confirms
Spain's Social Security confirmed that permanent disability benefits automatically convert to retirement pensions once the beneficiary reaches ordinary retirement age, with no further medical reviews allowed. The payment amount stays the same, as in the case of a €1,200 monthly total permanent disability pension. Article 200.2 of the General Law of Social Security prohibits reviews after that point. The rule offers financial certainty to older recipients.
ICO to offer €12.25 billion in affordable housing loans from September 1
Spain's state credit agency ICO will launch €12.25 billion in loans on September 1 to build affordable housing, with at least half earmarked for rental units. The program, part of the 'España Crece' fund, includes non-repayable aid for rentals capped at €9 per square meter. Only about ten companies have previously used similar ICO financing, which resulted in 3,720 homes. The new funding could expand the supply of affordable housing.
Spain wildfires burn five times more land than last year
Forest fires across the EU destroyed 457,459 hectares through July 29, a 31.8% increase from 2025, with Spain the hardest hit at 217,609 hectares burned—five times the 41,903 hectares from the previous year. Large fires affected southwestern Madrid, Ávila, Toledo, Guadalajara, Castellón and the French region of Gironde. Environment Minister Sara Aagesen cited a national figure of about 180,000 hectares. Intensifying wildfires pose risks to health and property.
Navia, Asturias to see Spain's longest total eclipse on August 12
The Asturian town of Navia will experience nearly 1 minute 50 seconds of total darkness during the August 12 solar eclipse, the longest duration in Spain. The partial eclipse starts at 19:30, totality runs from 20:26 to 20:28, and the event ends at 21:21. It will be the first total eclipse visible from the Iberian Peninsula in more than a century. The maximum totality on Earth reaches 2 minutes 18 seconds, according to the National Geographic Institute.
🛒 Mercadona is closed tomorrow — stock up your fridge!
