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Spain's economy in plain English: GDP growth, inflation, jobs data, EU funds, and what the Bank of Spain actually says. We track the numbers that affect prices, salaries, and savings — without the jargon.
Get economy news in your inbox every morning →Banks expect to tighten mortgage and consumer-loan criteria through December, the ECB's lending survey shows. Higher funding costs have made new loans less favourable. Rising interest rates drove falling demand in July-September, with home-purchase loans seeing the sharpest drop.
→ Read the full digestSpain's average retirement pension reached €1,577.6 a month in October, up 4.5% annually. Monthly contributory pension spending hit €14.5399 billion, up 6.3%. Inflation-linked increases and the first baby-boom retirements drove the rise in spending.
→ Read the full digestAn ATA survey finds 58.3% of autónomos (self-employed workers) plan price rises before year-end as higher energy and production costs squeeze businesses. Some 81% report rising costs. The share fearing closure or a major contraction within three years rose to 17.5%, from 11% in June.
→ Read the full digestSevere material and social deprivation affected 8.1% of people in Spain in 2025, up from 7.4% in 2015, a Funcas report finds. Spain now has the EU's fifth-highest rate, despite economic growth. The rate reached 10.7% among households with children under 16. Funcas calls for more support for families.
→ Read the full digestEconomists expect the European Central Bank to keep its benchmark rate at 2.5% at its meeting in the week of October 26. French debt turmoil has tightened financial conditions and is cooling demand. The French 10-year bond has climbed to 5%, a level not seen since the euro began in 2002.
→ Read the full digestFood prices have risen 31.8% since December 2021, compared with 20.7% growth in gross pay per employee. That gap explains why groceries still strain household budgets even as food inflation slows. September's annual food price rise was 2.7%, below overall inflation of 4.9%.
→ Read the full digestPension managers and insurers are calling for automatic enrolment in workplace pension plans ahead of the November 29 election. This remains an industry proposal, not a new requirement for workers. Political and social agreement remains distant.
→ Read the full digestAdopted EU rules set a €10,000 cash cap for goods and services from July 10, 2027. Spain can keep lower limits; private non-business transactions and bank deposits are exempt. Businesses covered by anti-money-laundering rules must identify customers paying €3,000 or more in cash.
→ Read the full digestAirlines have removed 3,111 flights to Spain from November and December schedules amid a jet fuel crisis. Cirium data show the cuts remove 563,254 seats, about 51 flights a day. Travellers face fewer flights in both months.
→ Read the full digestIMF figures for 2018-2027 put Spain's rise in public consumption at 2.7%, against 2.1% for advanced economies. A promised public-sector pay rise of 4.5%, possibly 5%, would add about €10 billion at the higher rate. BBVA Research says meeting fiscal rules is getting harder.
→ Read the full digestNatixis IM chief global markets strategist Mabrouk Chetouane says French debt tensions could prompt the ECB to delay a rate rise. He sees no major contagion risk for Spain. His view comes ahead of the ECB meeting on Thursday, October 29, and is one strategist's opinion.
→ Read the full digestRoyal Decree-law 31/2026, in force since October 21, lets some people seek reinstatement of a widow's or other contributory pension suspended under old rules preventing them from receiving both. Applicants must still meet the other eligibility requirements and apply by October 21, 2027.
→ Read the full digestLaw 4/2026 took effect on October 23, excluding some personal-damage compensation from income tests for non-contributory pensions. The exclusion covers amounts legally recognised or set by a court, but not amounts paid after a ruling or agreement. It may help recipients qualify for or keep a pension.
→ Read the full digestSpanish households paid €0,2509/kWh in the first half of 2026, against an EU average of €0,2832/kWh, helped by renewables. For a household using 3,750 kWh, that is €121 a year less. Iberdrola chairman Ignacio Galán predicted on October 21 that rises will continue and reach free-market customers as they renew annual contracts.
→ Read the full digestSpanish operators and distributors must release 4.4 million barrels of diesel and kerosene reserves by December 15. The requirement implements Spain's announced reserve-release plan following a March agreement among International Energy Agency members. It aims to ease shortages linked to the Middle East crisis.
→ Read the full digestAn EU court advocate general's opinion supports Spain's limits on debt cancellation; it is not a final ruling. Spanish law excludes people declared liable for tax debts by a final decision in the previous 10 years unless they paid in full. The case concerns a man liable for over €40,000 in company taxes.
→ Read the full digestSpain's Audiencia Nacional has temporarily suspended Repsol's energy levy payments while its appeal continues. The Tax Agency assessments total over €272.7 million: €152.4 million for 2023 and €120.3 million for 2024. The levy remains in litigation.
→ Read the full digestAn EU Court of Justice ruling requires banks to refund unauthorised transactions within 24 hours, even if the customer was grossly negligent. Banks must refund first and claim the money back from the customer afterwards. Sector sources say claims going back up to five years could cost Spanish banks close to €1 billion.
→ Read the full digestIn force since October 21, Royal Decree-law 31/2026 raises advances for unpaid court-ordered child support from €100 to €300 per child monthly from November 1. Income ceilings are €29,914.50 for one child and €34,188 for two. Current recipients need not apply again.
→ Read the full digestThe government's approved cap limits the regulated gas tariff rise to about 15%, rather than more than 45%, for about 3.1 million consumers. The unpaid difference is deferred for later repayment. The cap responds to higher energy costs after the US-Israeli offensive against Iran closed the Strait of Hormuz.
→ Read the full digestApproved EU regulation 2024/1624 takes effect on July 10, 2027, setting a €10,000 ceiling on business cash payments, including linked transactions. Countries can keep lower limits, so Spain's stricter rules can remain. Private transactions between individuals acting outside a professional activity are exempt.
→ Read the full digestInflation is outpacing average wage adjustments as collective bargaining stalls. Six in 10 sectoral or company pay agreements lack a clause that automatically adjusts wages when prices rise.
→ Read the full digestArquia Banca's 12-month welcome deposit pays 3% annually on €10,000–€200,000 transferred from other banks, with applications open until October 30. Interest is paid at maturity; early closure forfeits all interest, and partial withdrawals are not allowed. Spain's deposit guarantee covers up to €100,000 per holder.
→ Read the full digestThe government plans to put a survivor pension decree-law before the cabinet on October 20. It would cover unmarried couples with children after two years of proven cohabitation. Parliament's standing committee would then need to validate it.
→ Read the full digestCar brands warn that the election could delay electric vehicle purchase aid in early 2027. The Auto+ programme runs until December 31, 2026, and has used 71% of its funds. The sector fears a gap in incentives during the first half of 2027.
→ Read the full digestBanks are offering up to €750 to customers who move their payroll. Commitment periods run from 12 to 48 months, and leaving early means repaying a proportional share of the bonus. Many offers also require Bizum, bill payments, or card use.
→ Read the full digestThe government plans to approve the 2027 pension rise after inflation data due from November 27. First Vice-President and Economy Minister Carlos Cuerpo says existing law guarantees the increase. He believes a caretaker government could approve the Royal Decree-law before the end of 2026.
→ Read the full digestSpain has gone more than 1,000 days without the government presenting a new budget bill and continues to use the extended 2023 accounts. Experts warn that repeated extensions hinder investment and transparency. Public spending continues, and Spain's rules do not provide for US-style government shutdowns.
→ Read the full digestNew contributory retirement pensions average €1,711.4 a month, passing €1,700 for the first time. That figure applies only to newly awarded retirement pensions. Across the whole pension system, the September average was €1,374.6, up 4.6% over a year.
→ Read the full digestSpeed restrictions and cancellations are lengthening journeys on the Madrid–Barcelona high-speed line. Some sections have a 160 km/h cap, and operators have revised timetables and cut services. An AVE train fire in Ricla on October 12 added to disruption on a route already facing restrictions since January.
→ Read the full digestSince October 17, commercial calls must use nine-digit numbers starting with 400, so people can tell them apart from customer-service calls. People cannot call these numbers back. Anyone getting commercial calls from other numbers can complain to the telecoms user office (OAUT) or report them to the CNMC.
→ Read the full digestCongress's standing committee validated a Royal Decree-law extending fuel tax cuts and the gas tariff cap for vulnerable households. Fuel discounts remain until December. PP, PSOE, Sumar and other parties voted in favor. Vox voted against.
→ Read the full digestEurostat confirmed eurozone annual inflation reached 3.8% in September, the highest level in three years. Fresh food prices rose 4%, up from 2.7% in August. The figure adds pressure on the ECB over interest rates.
→ Read the full digestThe Euribor ended September at a monthly average of 3,24%, its highest since July 2024. The average financed home value fell from 294.667 euros in Q2 to 268.333 euros in Q3, and from 300.000 euros in July to 248.000 euros in September. Data: Centro de Estudios de Trioteca.
→ Read the full digestFuncas keeps GDP forecasts at 2,5% this year and 1,8% in 2027, but sees 1,7% in 2028. Public-debt interest payments would rise by some 20.000 million euros, from 43.500 million in 2026 to 63.700 million in 2031. Without adjustments, the deficit would again exceed the EU's 3% of GDP limit starting in 2030.
→ Read the full digestPedro Sánchez promises to revalue pensions before the end of the year, while Alberto Núñez Feijóo commits to an IPC-linked increase. Around 10 million pensioners have a stake in the vote. Feijóo said his government would 'ask for sacrifices'; PP's Juan Bravo conditions pension equalization on a healthy economy.
→ Read the full digestThe INE confirmed that the IPC closed September at 4,9%, six tenths of a percentage point higher than August, driven by higher gasoline prices. The Government will keep the 20-cent-per-liter fuel tax rebate through November, instead of cutting it to 13 cents as planned.
→ Read the full digestThe US Federal Maritime Commission concluded that Spain has applied restrictive port practices against US-flagged vessels and proposed a fee of 200.000 dollars (180.000 euros) per voyage for Spanish ships. It also proposed limits on imports of Spanish goods. The proposal now goes to the Trump administration.
→ Read the full digestThe Government limited the regulated gas tariff (TUR) rise to about 15%, avoiding an increase of more than 45% for about 3,1 million consumers. The difference between actual and applied costs will remain pending and must be repaid later with interest.
→ Read the full digestThe IMF expects the world economy to grow by 3,1% in 2026 and 3,4% in 2027, boosted by AI investment, while warning about debt costs and cyberattacks. Spain's forecast improved by four tenths to 2,5%, remaining the fastest-growing major European economy. Germany improved by six tenths to 1,3%; France was cut by two tenths to 0,4% in 2026 and 0,7% in 2027.
→ Read the full digestConsumer credit has been growing at more than 12% all year, driven by purchases of appliances, phones, cars and holidays, according to Banco de España statistics. Rates on revolving cards exceed 18%, and some cases end up in the Supreme Court on usury grounds. This growth comes as interest rates rise and Frankfurt signals further moves.
→ Read the full digestAfter the ECB raised the deposit facility to 2,50% in September, banks are offering one-year fixed deposits with returns up to 3,45% TAE. BluOr Bank, a Latvian bank, offers 3,45% TAE with a minimum contribution of €1 and a maximum of €100.000; early cancellation is not allowed. Deposits are backed by the Fondo de Garantía de Depósitos up to €100.000 per holder.
→ Read the full digestAbout 3,1 million households on Spain's regulated gas tariff (TUR) must repay, starting January 1, 2027, the difference resulting from the government's cap on the October 1 price rise, plus interest. The cap avoided a rise above 45%, but the TUR still rose about 15%. Repayments will run through quarterly TUR revisions until the amount is recovered.
→ Read the full digestThe average pension for new retirees exceeded 1.700 euros a month for the first time, reaching 1.711,4 euros in August, according to Seguridad Social. The system-wide average rose to 1.374,6 euros in September, up 4,6% year-on-year. Autónomo (self-employed) pensions average 1.062,8 euros, well below the general regime's 1.734,7 euros.
→ Read the full digestMajor electricity suppliers now offer contracts holding the energy price steady for three, five or even 10 years, after prices peaked at 300 euros/MWh this year. Endesa fixes the price for three and five years, Iberdrola offers five- and 10-year options, and Repsol offers a five-year tariff. The fixed price covers kilowatt-hour consumption.
→ Read the full digestThe 2027 pension increase is expected after the November 29 election, leaving timing uncertain, though contributory pensions are legally indexed to inflation. Social Security official Alfonso Muñoz estimates the revaluation at around 3,5%, based on average IPC rates from December 2025 to November 2026. The outgoing government could approve it through a real decreto-ley.
→ Read the full digestSpain's economy led EU growth and set employment records during the last legislature, with GDP up 15% since 2018 and unemployment at its lowest since the bubble burst. But the housing shortage and high rents remain major unresolved issues, and inflation has not fully disappeared. The Banco de España raised its 2027 GDP forecast to 2,2%.
→ Read the full digestUnder new packaged-drinks rules aligned with EU environmental law, bars, restaurants, and supermarkets will charge a refundable deposit of about 10 céntimos on bottles and cans. Spain follows countries such as Portugal, Germany, and Denmark. The deposit is refunded when the container is returned, as part of the SDDR system to boost recycling.
→ Read the full digestThe Bank of Spain lifted its 2026 GDP growth forecast to 2,6%, two tenths above its June projection, and its 2027 estimate to 2,1%. Unemployment is expected to fall below 10% next year, to 9,7%. Inflation, however, is now forecast to close 2026 at 3,9% and remain near 4% until 2028.
→ Read the full digestThe November 29 general election could delay the 2027 pension increase. Since 2021, contributory pensions have been updated in line with inflation, using average year-on-year IPC rates over the 12 months before December. If government formation extends into January 2027, the rise might miss the January payroll. One option is to approve the revaluation by decree.
→ Read the full digestThe EU and China have reached a deal to cut Chinese exports of hybrid and plug-in hybrid vehicles to the EU. Trade Commissioner Maros Sefcovic said the deal involves reducing exports by several million units over four years. Tariff cuts on automotive components, olive oil and food are expected to save European firms 225 million euros.
→ Read the full digestThere is no general legal limit in Spain on withdrawing cash from a bank account. Banks must identify clients for cash transactions of 1.000 euros or more, and cash deposits above 3.000 euros may be reported to the Agencia Tributaria. Exceeding these amounts is not illegal, nor does it automatically open an investigation.
→ Read the full digestThe ECB raised its deposit facility rate by 25 basis points to 2,5% at its September 9-10 meeting but gave no guidance on future rates. It cited the Middle East conflict and an energy shock that has not fully materialised, with August CPI at 3,2%.
→ Read the full digestA new real decreto changes how customers prove they qualify for a free basic payment account if they are in a situation of economic vulnerability or at risk of financial exclusion. Income thresholds remain tied to IPREM, and no family member may own real estate other than the habitual home.
→ Read the full digestA real decreto published in the BOE lets Spanish companies dual-list on exchanges outside the EU, such as those in New York or London, without moving their headquarters abroad. It would have allowed Ferrovial to keep its registered office in Spain.
→ Read the full digestBizum turns 10 with 32,5 million users and 40 payments per second in Spain. Around 70% of adults use it, and the average payment between individuals is 55 euros.
→ Read the full digestSpain's regulated electricity tariff (PVPC) has softened part of the price surge driven by soaring gas costs linked to the conflict in Iran. Without the Mercados a Plazo adjustment term in force since January, PVPC energy would have been 29% more expensive, according to El Diario. The mechanism has acted as a discount since September because of the greater weight of futures prices, shielding about 8 million supply points.
→ Read the full digestOne in four Spaniards now devotes more than 30% of income to food, according to the Food 2026 barometer. Lower-income households are hit hardest: food reached 19,6% of their spending, and adding housing and fuels took it to 61,5%. Average household food spending rose 4,4% to 5.626 euros, out of total average spending of 35.101 euros.
→ Read the full digestPension revaluation, the agreed pay rise for civil servants and the IMV increase now depend on a government decree, leaving more than 18 million people waiting. Revaluation affects 10,8 million pensioners and 2,7 million IMV recipients. Labour Ministry sources say the SMI increase process will continue.
→ Read the full digestThe wholesale electricity pool will average 201,99 euros/MWh on Tuesday, up 2,6% from Monday. It is the highest daily average since December 5, 2022, driven by higher demand and more expensive gas. Households on variable rates may see higher bills.
→ Read the full digestRecord tax collection, rising GDP and historic employment figures sit alongside inflation near 5% and housing as Spaniards' main concern. The economy is growing but rising prices and rents continue to pressure households.
→ Read the full digestLarge Spanish banks expect a slowdown in mortgage demand and more expensive credit as Euribor climbs and the ECB is expected to raise rates further. CaixaBank CEO Gonzalo Gortázar said the market is approaching an affordability problem, with many buyers unable to afford current prices. Mortgage data already points to slower growth.
→ Read the full digestVulnerable families with minors can get 100 to 220 euros a month on a prepaid Tarjeta Monedero for fresh food and hygiene products. A one-adult, one-minor household receives 100 euros; families of five or more receive 220 euros. Applicants need income below 200% of IPREM and at least one minor in the household.
→ Read the full digestCNMC is finalizing its first sanctions over the April 28, 2025 Iberian blackout, aiming to close around 50 cases by March. The case against Red Eléctrica has been left for last, and a flexible interpretation may leave it the least punished. Fines for very serious offenses range from 6 to 60 million euros.
→ Read the full digestSome 95.499 early retirees with over 40 years of contributions receive a Social Security supplement to correct past pension penalties. It applies to early retirements between 2002 and 2021, requiring at least 44 years and six months of contributions. The supplement equals the difference and is paid in 14 installments a year.
→ Read the full digestPensions will be revalued by 3,6% in January, the third-largest increase since 2010. Rising fuel, gas and electricity prices are pushing inflation back up after Spain had moved closer to the 2% target recommended by central banks. The revaluation forces Social Security to make a record payout.
→ Read the full digestThe regulated gas tariff (TUR) rose by an average of 17,6% from October 1, and part of that increase is deferred, not cancelled. RDL 25/2026 caps the raw material cost increase at 35%, giving 3,5 cents per kWh, and from January 1, 2027, the cap on increases cannot exceed 15%. OCU warns that the measure is a deferral and that the cost will be recovered in future tariff revisions.
→ Read the full digestEurozone annual inflation rose to 3.8% in September, the highest since September 2023, according to Eurostat's flash estimate. Energy prices climbed 18.8% and core inflation reached 2.5%. Spain posted the largest rise among major EU economies at 4.6%, adding pressure on ECB rates and Euribor.
→ Read the full digestNew retirees in August began receiving an average retirement pension of 1,711.4 euros a month, while the system-wide average reached 1,374.6 euros in September, up 4.6% year-on-year. General scheme workers average 1,734.7 euros, while autónomos (self-employed) average 1,062.8 euros.
→ Read the full digestThe regulated gas tariff (TUR) rises by 17.6% compared with July, affecting nearly three million households. The TUR vecinal for communities of owners rises by between 22.6% and 33.1%. Heating and hot water bills will rise sharply for those on the regulated tariff.
→ Read the full digestThe IPC reached 4.9% in September, its highest level since February 2023. Economist Pablo Gil warned that inflation "is destroying the middle class" and that the energy crisis could turn into a food crisis. He said household incomes are not keeping up with essential expenses.
→ Read the full digestThe European Commission opened an infringement procedure against Spain for failing to report its updated electricity risk-preparedness plan. Brussels sent a formal notice to Spain and France. The plan must cover extreme weather, cyberattacks and fuel shortages.
→ Read the full digestThe Madrid Provincial Court ordered ING to return €35,000 to an elderly couple scammed through a fake bank website. The court said the bank could not prove that the couple or their son had been negligent. Banks must refund phishing victims when customers were not negligent.
→ Read the full digestSpain estimates olive oil production at 1,602,596 tonnes for 2026/2027, up 23% from the previous harvest. Total availability, with carryover stock, could reach around two million tonnes. Farm groups want to activate a market withdrawal mechanism; Minister Luis Planas urged prudence.
→ Read the full digestThe Euribor averaged 3.24% in September, its highest level since July 2024. Families with an average 180,785-euro mortgage that is revised annually will pay 105 euros more per month, or 1,260 euros more per year. For a 300,000-euro mortgage, the increase reaches nearly 172 euros a month and about 2,074 euros more per year.
→ Read the full digestChinese electric car battery projects in Spain total 8,365 million euros and 7,490 jobs. Gotion High-Tech will pay 1,100 million euros for 49% of the Sagunto gigafactory owned by Volkswagen's PowerCo. The plant is expected to start operating in early 2027 with 1,500 initial employees.
→ Read the full digestThe average user on the PVPC regulated tariff paid 104.31 euros in September, up 28% year-on-year and the highest for that month since 2022. Facua estimates the newly approved tax cut would have lowered the bill by 13.65 euros to 90.66 euros. The profile used has 4.4 kW of contracted power and monthly consumption of 366 kWh.
→ Read the full digestGasoline averaged 1.934 euros per liter on Tuesday, 11.6% more than on August 31. From October until year-end, a fuel discount applies: 20 cents per liter in October, 13 cents in November, and 6 cents in December. Diesel has stabilized near 1.93 euros per liter.
→ Read the full digestSpanish payment platform Bizum and other European instant transfer networks have chosen Madrid as the headquarters of a new company, European Network for Payments. The alliance includes Bancomat, SIBS-MB Way, EPI, and Vipps MobilePay. The shared infrastructure aims to be operational next year.
→ Read the full digestSpain's CPI rose 4,9% year-on-year in September, the highest rate since February 2023. Fuel costs drove the rise after a summer of Middle East energy pressure; core inflation climbed to 3,1%, its highest since April 2024. Tourist package prices also fell less than a year earlier. Detailed product data arrives in two weeks.
→ Read the full digestThe government extended fuel discounts to year-end, keeping 20 cents per litre on diesel and adding petrol from October 1. The aid tapers to 13 cents in November and 6 cents in December, with a safeguard to restore 20 cents if fuel CPI rises more than 15%. If tax cuts are fully applied, petrol would fall from 1,954 euros per litre to 1,80 euros per litre.
→ Read the full digestPetrol, electricity and gas prices are at their highest since 2022. Gasoline 95 reached 1.952 euros per litre and diesel 1.942 euros on Monday, with 40% of stations selling petrol at 2 euros or more. The government is set to approve a new anti-crisis package on Tuesday before the current one expires on Wednesday.
→ Read the full digestSenior bankers expect ECB rates to rise above 3% and even 4% in 2027. Santander's CEO sees rates 'maybe above 3%' before falling, while Caixabank's CEO calls 4% 'a high but reasonable band'. That would push up mortgage costs and improve savings returns.
→ Read the full digestForecasts point to a pension revaluation of around 3.2% in 2027, taking the average retirement pension above 1,625 euros a month. The move would add at least 7,400 million euros to the Social Security bill.
→ Read the full digestVariable-rate mortgage holders will pay more at their next revision as the Euribor closes September at around 3.22%. An average 178,365-euro mortgage over 25 years rises by 69 euros per month, or 828 euros per year; a 300,000-euro loan jumps 115 euros monthly and about 1,380 euros yearly. The ECB raised its key rates on September 10.
→ Read the full digestThe BOE has published Line 2 of the Plan Auto+ 2026, offering subsidies of up to 7,500 euros for autónomos (self-employed) and companies buying electric or electrified vehicles. Self-employed workers can apply for aid for up to three vehicles; companies for up to ten. Dealerships and points of sale are excluded.
→ Read the full digestHouseholds can save an average of 1,310 euros per year by choosing the cheapest supermarket, according to OCU. In Madrid, the saving reaches 4,381 euros, and nearby towns such as Alcobendas show 4,270 euros. The study analyzed more than 100,000 prices across 244 products.
→ Read the full digestThe average hotel overnight price in Spain reached almost 167 euros in August, a record and nearly 70% higher than a decade earlier. Average revenue per occupied room rose from 109.3 euros in 2019 to 166.9 euros this August. Prices range from 64 euros in Extremadura to 230 euros in the Balearic Islands.
→ Read the full digestSpain's supermarket basket now costs 39.5% more than five years ago, based on OCU analysis of 101,520 prices. Ground coffee has risen 142% since 2021, size M eggs 135%, size L eggs 123% and milk chocolate 101%. Orange juice, ice cream bars and stewing beef also climbed sharply.
→ Read the full digestPetrol and diesel prices have risen for 20 and 16 consecutive days, respectively, with averages of 1.946 and 1.942 euros per litre. Catalonia has the cheapest 95-octane petrol at 1.915 euros and 72.8% of stations below 2 euros; Navarra has the cheapest diesel at 1.903 euros. Murcia, La Rioja, the Valencian Community and Aragon also have many stations below 2 euros.
→ Read the full digestSpain will introduce deposit-return systems under an EU packaging waste regulation that has been in force since August 12. Bars, restaurants and supermarkets will charge a refundable deposit of about 10 cents on bottles and cans. The EU wants a collection rate of at least 70%; Spain collected only 41.3% of single-use plastic bottles in 2023.
→ Read the full digestGovernment fuel tax discounts expire on Thursday, October 1, as gasoline consolidates annual highs and diesel approaches them. Diesel now averages 1,942 euros per litre, the same price as before discounts took effect. OCU warns that removing support completely would add at least 20 cents per litre for diesel drivers.
→ Read the full digestSpain's economy grew 0.7% in the second quarter, confirming the preliminary figure, with year-on-year growth of 2.6%. Private consumption rose 1.2% and productive investment advanced 1.7%, offsetting a negative contribution from the external sector. External demand subtracted 0.9 percentage points from GDP growth.
→ Read the full digestSocial Security spent a record 14,498 million euros on contributory pensions in September, up 6.3% year-on-year. The average retirement pension rose 4.5% to 1,576.1 euros per month, while the average pension reached 1,374.6 euros. The general 2026 pension increase is 2.7%, in line with average CPI.
→ Read the full digestThe OCU says shoppers in Spain can save up to 1,310 euros a year by comparing supermarket prices. The shopping basket has risen 1.8%, and the consumer group warns many families have not recovered lost purchasing power. It is calling on the government to adopt measures and aid.
→ Read the full digestVolkswagen, Audi and Seat are recalling around 2.8 million vehicles worldwide over a possible steering defect caused by corrosion in a fixing screw. Affected models include the VW Tiguan, Touran, Golf Variant, Golf Sportsvan and Caddy, the Audi Q3, and the Seat Ateca and Tarraco. Owners should check whether their vehicle is part of the recall.
→ Read the full digestRenfe is investigating a cybersecurity incident originating from compromised Adif servers that exposed a limited volume of customer data, mainly names and email addresses. The company says no DNI numbers, payment methods or financial information were stolen. There is no evidence the material has been publicly disclosed.
→ Read the full digestPetrol averages €1.928 per liter and diesel €1.918 after 11 consecutive weekly rises. Petrol is up 30% since late June; filling a 55-liter tank costs about €106, €25 more than a year ago. Prices remain below July 2022 records of €2.141 for petrol and €2.1 for diesel.
→ Read the full digestRenault will invest €600 million in Spain from 2026 to 2030 to produce five new models in Valladolid and Palencia, including its first 100% electric vehicles made in Spain. The project, backed by the Spanish Government and Castilla y León, includes a battery assembly line in Valladolid.
→ Read the full digestThe EU Court of Justice ruled that a national three-year deadline cannot block refunds collected under abusive contract clauses. The case involved a German heating contract, but the ruling could affect similar claims in Spain, including mortgage clauses. The Spanish Supreme Court separately annulled CaixaBank multi-currency mortgages for lack of transparency.
→ Read the full digestThe OECD lifted Spain's 2026 GDP growth forecast to 2.6%, up 0.4 points, making it the fastest-growing advanced economy. But it worsened the inflation outlook to 3.7% in 2026 and 3.4% in 2027, citing energy prices and El Niño-driven food prices. Growth should outpace the US (2.2%) and more than double the eurozone (1%).
→ Read the full digestEconomy Minister Carlos Cuerpo confirmed the government will approve a new support package linked to the war in Iran next Tuesday. Existing measures expire on October 1 and have already cost more than €10 billion since March. The state absorbed half of the increase in diesel and gasoline prices, cutting inflation by up to one percentage point.
→ Read the full digestRenfe will make transport passes and tickets available on the iPhone starting next year, after having already supported Android. The change allows users to use digital passes without physical cards and opens the door for other operators and transport consortia to use iOS.
→ Read the full digestOCU estimates the regulated gas tariff (TUR) will rise about 69% in October. A household using 9,000 kWh annually would pay around €910, up from about €600, adding €310 a year. The TUR.2 rate would climb from 4.12 to 6.95 cents per kWh.
→ Read the full digestPibank will raise its 12-month deposit to 3.03% TAE from September 29, with no minimum or maximum amount, quarterly interest, and partial or total cancellation. The remunerated account will rise to 2.02% TAE from 1.76%, and the payroll account to 2.50% TIN (2.52% TAE) for balances over €5,000 from October 1.
→ Read the full digestSpain's exports reached a record €35,554 million in July, up 3% year-on-year, but imports rose 6% to €40,678 million. The deficit was €5,224 million, and the accumulated deficit through July hit €38,005 million, the highest since 2022. Energy exports surged 61% to €3,319 million.
→ Read the full digestSpain faces the largest drop in the pension replacement rate among major European economies by 2050, according to a Fedea study. Aging and baby-boomer retirements will add 2.5 points of GDP to the pension deficit between 2022 and 2050. Workers paying into Spanish Social Security will see public pensions replace a smaller share of their final salary.
→ Read the full digestForeign investment reached €12,446 million in the first half of 2026, up 31.2% from a year earlier. The US was the main investor, accounting for 23% of the total, with gross investment up 84%. Greenfield project investment grew more than 52%. Rising investment signals confidence and can create jobs.
→ Read the full digestThe European Fiscal Board doubts Spain's use of the national escape clause to avoid an excessive deficit procedure. It says defense spending has been "very limited" and questions the flexibility. Spain is in the very high debt group, above 90% of GDP; debt hit 100.7% in 2025, with 99.6% forecast for 2026. The deficit was 2.4% in 2025.
→ Read the full digestThe Euribor hit 3% in daily quotes for September, up from 2.954% in August and 2.114% a year ago, pushing variable mortgage payments higher. Spain's inflation rose to 4.6% in August compared with 3.2% in the eurozone, the widest gap since August 2022, as the Iran conflict drives up energy prices.
→ Read the full digestIberdrola's La Muela pumped-storage hydro plant in Valencia can store up to 20 hours of electricity and produce up to 1,800 MW. It can reduce gas consumption by 12% on a sunny working day in September and supplies nearly 600,000 homes annually.
→ Read the full digestAugust inflation reached 4.3% in Spain and 3.9% in Aragon, driven by rising fuel prices. Economists and businesses in Aragon say they are concerned but not alarmed. Farmers are planning street protests over diesel costs.
→ Read the full digestAgricultural diesel now averages €1.405 per liter; a 300-liter tractor tank costs €421.50 to fill. Farmers call the surge devastating and demand that subsidies expiring on September 30 be maintained. The Iran conflict is inflating energy prices, likely pushing food costs higher.
→ Read the full digestSpain's INE revised annual GDP figures, raising 2024 growth to 3.7% and lowering 2025 growth to 2.6%. The 2023 growth estimate was trimmed to 2.4%. The revision covers years marked by inflation, EU funds, defense investment, and the US trade conflict.
→ Read the full digestSpain's contributory pensions are on track for a revaluation above 3% in 2027, up from 2.7% in 2026. August CPI hit 4.3%, the first reading above 4% in three years, and BBVA Research's chief economist expects September inflation to reach 4.8%. Higher energy prices are driving the increase.
→ Read the full digestPrivate-label products now represent 53.8% of purchase volume in Spain, the fastest growth in Europe. Consumers save an estimated €2,400 per year as 69.2% fill half or more of their baskets with store brands. Aldi cut private-label prices by 2% while the market average rose 1.9%.
→ Read the full digestA new EU packaging regulation brings deposit, return, and refund systems to Spanish bars, restaurants, and supermarkets. Consumers will pay a refundable deposit of about 10 cents per bottle or can. The EU requires collection of at least 70% of these containers; Spain collected only 41.3% of single-use plastic bottles in 2023.
→ Read the full digestThree months after the Mercosur-EU trade agreement took effect, meat is expected to become cheaper for European consumers. The pact eliminated 91% of tariffs on European exports and 92% on Mercosur exports on some products. Brazil, Argentina, Paraguay, and Uruguay are among the world's top ten meat exporters.
→ Read the full digestForeign tourist card spending in Spain rose 8.8% between May and August, boosted by geopolitical tensions and the August eclipse, according to BBVA Research. International tourists accounted for 85% of total tourism spending in those months, and total tourist spending increased 5.7% year-on-year in the second quarter.
→ Read the full digestSpain's public debt closed July at 99.9% of GDP, the lowest ratio since February 2020 and the first time below 100% since before the pandemic. Nominal debt still reached a record €1.744 trillion, up 3.8% year-on-year. During the pandemic, the ratio exceeded 120% of GDP.
→ Read the full digestThe government approved a capacity market system that will auction electricity to guarantee supply during periods of high demand. The mechanism favors combined cycles and nuclear, and penalizes wind and solar. The European Commission estimates the cost at €9 billion, passed on to consumers through electricity bills.
→ Read the full digestMoeve broke ground on its 300 MW renewable hydrogen plant in Palos de la Frontera, Huelva, the first phase of the Valle Andaluz del Hidrógeno Verde. It aims to produce up to 300,000 tonnes of green hydrogen per year and create more than 8,000 direct and indirect jobs. Operations are expected to start in 2029.
→ Read the full digestMortgage foreclosures in Spain rose 20.9% year-on-year in Q2 2026 to 4,090 as the Euribor climbs due to the Iran war. Foreclosures on primary residences rose 27.5% to 3,703, the highest since early 2017. More than half involve mortgages signed before 2008.
→ Read the full digestEuropean Commission President Ursula von der Leyen said the EU has paid €90 billion extra for fossil fuels since the Iran war began. Spanish industry faces €7.4 billion in additional costs. Higher energy costs can drive up inflation and living expenses across Spain.
→ Read the full digestSpain's contributory pensions are expected to rise more than 3% in 2027, based on the average CPI from December to November. August inflation hit 4.3%, pushing the provisional increase to 3.2%. Pensioners would see benefits rise, protecting their purchasing power.
→ Read the full digestAugust inflation rose to 4.3%, the highest since early 2023, driven by a 16.9% year-on-year jump in gasoline prices. Core inflation, excluding energy and fresh food, cooled to 2.9%, while food prices rose 2.3%. Households face higher fuel and food costs.
→ Read the full digestBankinter increased the interest on its digital account to 3% TAE for new clients, up from 2.5%, on balances up to €100,000. The promotion runs from September 15 to October 28, and clients with payroll direct deposit can receive up to €600 gross in the first year. The account has zero fees and a free debit card.
→ Read the full digestThe Council of Ministers approved DORA III, Aena's regulatory framework, with nearly €13 billion in investment for 2027-2031 and an average annual airport fee increase of 0.33%. The tariff changes can affect flight prices.
→ Read the full digestThe 12-month Euribor daily rate rose to 3.3% after the ECB raised its reference rate to 2.5%. The provisional monthly average sits at 3.109%, a level not seen in two years. Variable-rate mortgage holders in Spain will pay more, with typical increases of around €84 per month on a €150,000, 25-year loan.
→ Read the full digestBrent crude rose 2.6% to $107.30, and European gas hit €83/MWh, its highest since late 2022, amid tensions over Iran and the Strait of Hormuz. The rise feeds into fuel, electricity and transport costs across Spain.
→ Read the full digestSpain's competition authority has launched an Alias Registry that verifies senders of SMS, MMS and RCS messages to Spanish numbers. Entities must prove a link to their brand, trade name, company or domain to use an identifier. The system aims to cut smishing fraud by making fake bank and company texts harder to send.
→ Read the full digestThe 12.5 kg butane cylinder will rise by 4.96% on Tuesday to €18.84, its highest price in four years. The increase reflects raw material and freight costs, partly offset by a hydrocarbon tax cut. Households in areas off the gas grid will pay more for cooking and heating.
→ Read the full digestUnder the EU packaging regulation, Spain will introduce a deposit-return and refund system. Supermarkets, bars and restaurants will charge about 10 cents per bottle or can, refundable when containers are returned. The EU requires the collection of at least 70% of these containers; Spain collected only 41.3% of single-use plastic bottles in 2023.
→ Read the full digestS&P and Fitch left Spain's credit ratings unchanged, while Scope upgraded the country from A to A+. Moody's declined to raise Spain's rating in July. Political weakness blocks budgets, reforms, and decrees, limiting economic reforms despite growth.
→ Read the full digestFuel price spikes driven by the war in Iran, tensions in the Strait of Hormuz, and Ukrainian attacks on Russian refineries are pushing French and Portuguese drivers to refuel in Spain. French drivers fill up in northern Spain, while Portuguese drivers do so in western Spain.
→ Read the full digestRevolut has established Spain as its third-largest market with 7 million clients, about 9% of its 80 million global users. Penetration is around 15%, with one third of people aged 25 to 34 holding an account. The company plans to surpass 8 million clients by January and open a physical store in Barcelona in early 2027.
→ Read the full digestDiesel margins over crude hit a record of $112.17 per barrel in the US and $98 in Europe in early September, more than double the June average of $44.75. Brent crude hovers around $104 as supply disruptions in Russia and the Middle East reduce refined fuel availability. In Spain, conventional diesel costs nearly €1.90 per liter, while premium varieties reach €2 per liter.
→ Read the full digestAnalysts surveyed by the European Central Bank expect the deposit rate to stay at 2.5% until the third quarter of 2027. A cut to 2.25% is expected in the fourth quarter of 2027. The ECB raised rates to 2.5% on Sept. 10 because inflation remains above target; analysts see inflation at 3.2% in Q3 2026 and 3.3% in Q4 2026, falling to 2% by late 2027.
→ Read the full digestScope Ratings raised Spain's long-term debt rating from A to A+ and changed its outlook to stable. The agency expects the economy to grow 2.6% this year and 2.1% in 2027, with public debt falling from 100.7% of GDP in 2025 to below 92% by 2031. It cites solid growth and improving public finances, though high debt and unemployment remain challenges.
→ Read the full digestSpanish company PLD Space presented its Miura 9 rocket, designed to launch satellite constellations and strengthen Europe's commercial space position. The Elche-based firm is developing the rocket under a €158.9 million contract with the European Space Agency. Spain is Europe's fourth-largest space economy.
→ Read the full digestAtlantic Copper inaugurated CirCular in Huelva, a plant that recovers copper, gold, silver, platinum, palladium, tin, nickel and zinc from electronic waste. It is the first such facility in southern Europe and required an investment of €550 million. Its initial capacity is 60,000 tons of materials per year.
→ Read the full digestCeuta Chamber of Commerce President Karim Bulaix says the city's economy is in a critical situation after the migration crisis. Direct losses reached €33,038,768 as of Aug. 31, equivalent to 20.6% of monthly GDP, while tourist demand from the mainland fell 90%. Bulaix called the situation an "authentic disaster" for the city's productive fabric.
→ Read the full digestThe MEI pension mechanism will rise to 1% as of January 1, 2027. Workers will contribute 0.17% of their base salary, up from 0.15% in 2026, while employers will pay 0.83%. The increase will hit all workers, with no salary-level exceptions; for example, an employee earning €25,000 gross pays about €37.50 this year.
→ Read the full digestAfter the European Central Bank raised interest rates for the second time this year, banks are competing harder for deposits. Neobanks such as ING, MyInvestor and Trade Republic now offer 3% on their main products, while large banks focus on investment funds, pensions and payroll accounts. Variable-rate mortgages will become more expensive.
→ Read the full digestFuel stations warn prices will rise sharply starting October 1 unless the government restores fuel tax rebates. Brent crude trades near $105 per barrel. With the 20-cent rebate ending, gasoline would rise by 6.05 cents per litre and diesel by 24.2 cents. CEEES says the situation threatens SMEs and autónomos (self-employed).
→ Read the full digestRyanair CEO Michael O'Leary warns ticket prices may rise if oil prices stay high, following a 34% drop in the airline's profit. Brent crude reached $108 and is trading near $105, with some experts warning of $119.40. Ryanair has fuel hedges at $67 per barrel for 2027 and has covered 15% of its 2028 needs at $85.
→ Read the full digestA draft decree requiring new renewable plants to supply 80% of data centers' electricity is drawing criticism from renewable and industrial sectors. Renewable groups call the simultaneous supply requirement unworkable; industrial sources say it could double project costs. Data centers warn projects may move to other countries.
→ Read the full digestBrent crude surpassed $105 a barrel on Thursday, and European gas reached its highest level since December 2022, adding to inflation pressures the same day the ECB raised rates. Brent rose by up to 4% and has climbed more than 70% this year, while US benchmark WTI passed $100. TTF European gas rose another 2.5% to exceed €82 per megawatt hour, a rise of more than 155% since the start of the war in Iran. Higher energy prices push up household costs across Spain.
→ Read the full digestUber, WeRide and Avomo received Spain's first authorization for autonomous passenger robotaxis from the DGT and the Community of Madrid, with tests planned for late 2026. The permit allows autonomous passenger vehicles in delimited areas of public roads. Initial work includes mapping operating zones, validating routes and testing vehicle operability. A new mobility option in Madrid could eventually change transport costs and availability.
→ Read the full digestThe European Central Bank is expected to raise interest rates by 25 basis points to 2.5% on Thursday. Sovereign bond yields have climbed as investors grow more reluctant to finance public debt, and old zero-rate debt is now being refinanced at a higher cost. The Middle East conflict adds pressure to the bank's updated forecasts. The move will affect Euribor-linked mortgages and credit costs in Spain.
→ Read the full digestGasoline hit its highest price of the year at €1.835 per liter after the government cut the fuel discount from 10 to 5 cents per liter on September 1. Filling a 55-liter tank now costs about €100.9, €5.64 more than eight days earlier. Gasoline is 24% more expensive than in late February. Diesel prices have fallen after the diesel discount doubled to 20 cents per liter.
→ Read the full digestSpanish business margins reached €97 billion in the second quarter, with a 12.8% margin on sales versus the 10.5% average from 2009 to 2021. The energy sector is posting record profits as Brent oil nears $100 and the European TTF gas benchmark trades above €75 per MWh, up 138% since the Iran war began. Inflation has climbed back above 4%, driven by fuel prices. Unions want the minimum wage (SMI) to rise by more than 5% and pay increases of up to 7% in collective bargaining agreements.
→ Read the full digestSpain's Treasury raised €2.415 billion in short-term debt. Nine-month bill yields reached 2.783%, the highest since October 2024, while three-month bills paid 2.464%. Total demand hit €6.866 billion, 2.8 times the amount awarded. The yield on Spain's 10-year bond reached 3.832%, its highest level since November 2023.
→ Read the full digestItalian group Coricelli has positioned itself as the favourite to buy Spanish olive oil group Deoleo, owner of Carbonell, Koipe, Hojiblanca and Bertolli, with a €500 million offer. Dcoop director general Rafael Sánchez de Puerta asked the Spanish government to get involved, saying Deoleo should remain a Spanish and Andalusian company. He described the process as complicated and said it needs close monitoring.
→ Read the full digestThe INE's next GDP revision, due Sept. 18, is expected to raise 2024 growth by one to two points, adding €15-30 billion, and could confirm Spanish GDP per capita has grown almost as fast as the US since 2019. The revision would support estimates that Spanish GDP per capita has grown 9.4% since 2019, close to the US rate of 11.3%. The analysis says it would complicate the narrative of a widening Europe-US gap and show immigration-friendly policy is not incompatible with higher per-capita income.
→ Read the full digestRenfe will keep pulling Talgo bogies from circulation on safety alarms even without detected cracks, but spare parts are exhausted and Talgo has not supplied replacements, so the operator may eventually reduce its train offer. High-speed capacity is unaffected so far because retired bogies have been replaced, but Renfe has no more spare parts available. Since summer 2025, eight bogies were withdrawn from the Madrid-Barcelona line; 19 further cases were identified on the Madrid-Valencia line. Among those 19, three bogies were removed after inspection findings and 16 removed preventively.
→ Read the full digestUGT and CCOO have called for a 'common front' with public administrations to guarantee Seat's survival, and say they would seek alliances with other manufacturers, possibly Chinese, if Volkswagen will not fund electrification. Volkswagen and Seat acknowledged last week that the brand could be eliminated after 2030. The unions warn that ending Seat would hurt sales and employment. They call the commitment to Seat and Cupra 'a bet for the country'.
→ Read the full digestMarkets expect the ECB to raise rates by 25 basis points this week, taking the deposit facility to 2.5%, the highest since March 2025. Eurozone inflation hit 3.3% in August, driven by energy prices in the wake of the US-Iran conflict. JP Morgan and BNP Paribas expect another hike before year-end, likely in December. Higher ECB rates often push up Euribor and variable-rate mortgages in Spain.
→ Read the full digestSpain extracted more gas from storage than it injected in July and August, recording a net drawdown of 161.2 GWh and breaking the usual summer refill pattern. LNG arrivals fell almost 23% as tankers chased higher-paying buyers amid the Strait of Hormuz blockade, while gas use for power generation rose 31%. Storage ended August at 74% full, above the EU average of 65%, so sector sources rule out winter shortages.
→ Read the full digestA new EU packaging regulation, effective August 12, requires Spain to introduce deposit-return systems for bottles and cans. Supermarkets, bars and restaurants will charge a refundable deposit of around 10 cents, returned when the empty container is handed back. The EU requires a 70% collection rate; Spain collected only 41.3% of single-use plastic bottles in 2023.
→ Read the full digestUS forces disabled two tankers and destroyed a third after Iran's Revolutionary Guard fired ballistic missiles at US Navy warships. Admiral Brad Cooper said the tankers funded the Revolutionary Guard. The conflict has disrupted the Strait of Hormuz, through which 20% of world crude oil transited before the war. Fuel prices are rising, affecting household budgets in Spain.
→ Read the full digestThe digital euro is advancing toward a possible launch in Spain by 2029. Money would be issued directly by the European Central Bank rather than by commercial banks. The user experience would be similar to existing mobile payments. It could eventually become a new official digital currency for everyday payments.
→ Read the full digestRoyal Decree 1082/2025 introduces mandatory labeling requirements for preserved fishery and seafood products in Spain. Labels must use the official national and scientific denomination matching the FAO ASFIS database. The rules apply to canned mussels, sardines, cockles, tuna and ventresca, among others. Shoppers will see clearer, standardized labels on canned fish.
→ Read the full digestThe Ministry of Finance pushed through its regional financing reform in the CPFF with votes from Catalonia and the Canary Islands, despite rejection from PP-governed regions and two socialist regions. The plan adds €21 billion and heads to Congress, where approval is not guaranteed. Madrid's government, led by Isabel Díaz Ayuso, boycotted the meeting. The proposal aims to replace the model that has been expired since 2014.
→ Read the full digestVolkswagen CEO Oliver Blume said it is increasingly complicated to keep investing in the Seat brand due to the high cost of electrification, but he backed Seat S.A. and Cupra. The future of the Seat brand remains under review, according to a joint statement. Seat has been part of Volkswagen for 40 years; plans could sacrifice the brand by the end of 2029. Seat S.A. has its main industrial center in Martorell.
→ Read the full digestGlobal food prices rose 1.9% in August to their highest level since late 2022, driven by cereals, sugar and dairy, according to the FAO. Wheat prices rose 2.6% month-on-month, while sugar jumped 11.9%. Geopolitical tensions, energy costs and extreme weather such as El Niño are pushing prices up. The Bloomberg Agriculture Spot index rose more than 13% in August, its biggest monthly jump since July 2012.
→ Read the full digestThe Fiscal and Financial Policy Council is set to approve Spain's new regional financing model on Friday, 12 years after the previous system expired. The reform adds €21 billion and is backed by the central government, Catalonia (PSC and ERC), and the Canary Islands. Regions can join voluntarily or remain under the 2009 system. Madrid has said it will not attend, calling the model "deeply unjust" and "imposed by Catalonia".
→ Read the full digestVolkswagen's supervisory board has unanimously approved its Future Plan 2030, which could cut around 50,000 additional jobs worldwide. This comes on top of roughly 50,000 jobs already agreed since late 2024 across Volkswagen, Audi, Porsche, and Cariad. Four German plants — Emden, Zwickau, Hannover, and Neckarsulm — face uncertainty. The company must present a reorganization plan for European production by June 2027, leaving Seat's future unclear.
→ Read the full digestFuel prices in Spain have climbed for nine consecutive weeks. Diesel is up 24% and gasoline is up 20.4% since July, with average prices at €1.865 and €1.732 per liter respectively. The government ended the VAT cut on June 29 and replaced it with a hydrocarbon tax bonus. As of Sept. 1, the diesel bonus was raised to 20 cents per liter.
→ Read the full digestRenfe recorded a net profit of €60.2 million in 2025, its first profitable fiscal year since 2019, after losses of €2.9 million in 2024. The rail operator transported 531.4 million passengers, and revenue rose 19% to €2 billion. High-speed and long-distance ticket sales increased 7.5% to €1,469 million. The turnaround could support better services and rail investment.
→ Read the full digestThe government has extended the public comment period for a draft decree tightening data center requirements to September 10 at 17:00. The draft would require data centers to obtain a "European card" and to cover 80% of their consumption with new renewables. Industry association SpainDC requested substantial changes. The regulation could affect tech investment and jobs but has limited direct impact on most residents.
→ Read the full digestEurozone inflation hit 3.3% in August, highest in nearly three years, driven by a 14.3% energy surge. The 12-month Euribor closed August at 2.95%, rising for a second month, so variable-rate mortgage holders face higher payments. On a 150,000-euro mortgage over 25 years with a 1-point differential, an annual review adds about 68 euros to the monthly payment, or 810 euros per year. The ECB meets on September 10 to consider a rate hike.
→ Read the full digestThe government approved a 309 million euro package for Ceuta after the migration crisis, including permanent Corporate Tax and IRPF breaks extended to Melilla. Funding covers 21 million for essential services, over 90 million for security, 118 million for minors and aid, and 80 million for businesses and workers. First Vice President Carlos Cuerpo said the business aid equals 4% of Ceuta's GDP.
→ Read the full digestSpain's Treasury placed 6,495 million euros in 6- and 12-month bills on September 1. Twelve-month bills yielded 2.846%, the highest since November 2024, and six-month bills were awarded at 2.641%. Total demand reached 10,466 million euros. Higher yields offer better returns on short-term savings but also reflect rising borrowing costs.
→ Read the full digestThe Ministry of Transport approved extending the Abono Único to regional and municipal transport systems that join voluntarily. Two personalized 30-day passes are established: one general and one for minors and young people up to 26 with legal residence. It initially integrates state road concessions, Cercanías, Rodalies de Renfe, and several Media Distancia routes. It aims to cut emissions.
→ Read the full digestSpain received 11.5 million foreign tourists in July, up 4.6%, and they spent 18,217 million euros, up 10.9%, both record figures. Average spending per visitor was 1,579 euros. In the first seven months of 2026, 58.1 million tourists arrived, and projections suggest Spain could exceed 100 million visitors for the first time in December. Strong tourism supports jobs but pressures housing and prices.
→ Read the full digestIKEA's parent companies are investing 53.4 million euros to lower prices on 397 products in Spain by an average of 21%, part of a 1.2 billion euro European initiative. Reductions average 15% to 25% on popular items including BESTÅ, KALLAX, HEMNES, KIVIK and POÄNG. The cuts ease cost-of-living pressure on household budgets.
→ Read the full digestThe Euribor closed August at 2.95%, its highest level since August 2024, up 11 basis points from July and 84 basis points year-on-year. A €150,000 variable-rate mortgage will see monthly payments rise by €70.25, or €843 per year. The data is preliminary, pending confirmation by the Bank of Spain.
→ Read the full digestThe average regulated electricity bill hit €88.81 in August, up 19% year-on-year and the highest for August since 2022. Back-to-school costs now reach €2,484 per child, 4% more than last year and €514 more than in 2019. Fuel and electricity drove inflation to a three-year high. Madrid and Catalonia remain the most expensive regions.
→ Read the full digestFilling a 50-liter diesel tank now costs €93.05, €22.70 more than a year ago, while petrol costs €86.15, €12.30 more. Diesel prices rose 15.7% in July, triggering an automatic discount of 20 cents per liter from September; petrol gets a 5-cent discount. Prices have now risen for eight consecutive weeks.
→ Read the full digestThe Euribor closed August at 2.95%, its second consecutive monthly increase. A €150,000 mortgage over 25 years with a 1-point differential will cost about €68 more per month, or €810 more per year. A €300,000 mortgage under the same conditions will rise about €135 per month and €1,620 per year. Analysts expect the ECB to raise rates again in September and possibly December.
→ Read the full digestSpain's diesel tax rebate rises to 20 cents per liter on September 1, up from the planned 5 cents. The increase was triggered automatically because diesel prices rose 15.7% year-on-year in July, above the 15% threshold. Gasoline, which rose 7.3% in July, keeps a 5-cent discount in September. The Economy Ministry estimates the anti-crisis measures have reduced inflation by 1 percentage point on average.
→ Read the full digestBack-to-school costs in Spain have risen 16% in two years, averaging €594 per pupil in public schools. Costs climb to €702 in concertada (state-funded private) schools and €1,752 in private schools, with an average enrollment fee of €522. Textbooks are free in public and concertada schools through regional programs. August inflation stood at 4.3%, the highest since 2023, and the household savings rate fell to 11.3%.
→ Read the full digestThis summer's extreme heat cost Spain between €17 billion and €24 billion, or 1%–1.4% of GDP, according to Allianz Research and Triodos Bank. Tourism is already suffering in the warmest destinations. Spain is critically vulnerable to climate change, which affects agriculture, construction, transport and productivity.
→ Read the full digestThe Economy Ministry will resume approval of the Financial Customer Defense Authority in September. A new consumer credit contracts law is expected to enter into force in November and aims to cap interest rates on consumer credit. The banking sector opposes both measures.
→ Read the full digestSmall retail is losing autónomos (self-employed) due to a lack of generational succession. The sector has 9,201 fewer autónomos than a year ago, while overall self-employment gained 60,000 contributors. Inflation at 4.3%, the highest in three years, adds pressure.
→ Read the full digestBanks will no longer be able to issue credit cards or increase limits without prior client authorization under a draft Consumer Credit Law. Previously they could issue cards and raise limits without approval. The goal is to prevent the risk of debt and give consumers more control over financial products.
→ Read the full digestSpain's CPI rose to 4.3% in August, up 0.7 points from July and the highest since early 2023. Underlying inflation moderated to 2.9%. Fuel price increases, linked to the Iran conflict and holiday travel, drove the rise, while food prices fell less than they did a year ago. The prolonged conflict has also pushed Euribor to its highest level since September 2024, worsening the September cost squeeze.
→ Read the full digestThe Ibex 35 rose 0.81% to close at 20,041.9 points. The gain returned the index to the 20,000-point mark. Fed President Kevin Warsh's speech at Jackson Hole raised expectations of a possible rate hike.
→ Read the full digestConsumer Affairs has opened its first sanction case against a transport ticket seller for not including management fees in the initial price, a practice banned since December. The company could face a fine of up to €100,000 or six to eight times the illicit profit. The case is in the opening phase under the modified Customer Service Law.
→ Read the full digestThe ECB is expected to raise interest rates again, making loans more expensive. Board member Isabel Schnabel said inflation may remain above 2% for a prolonged period because of energy costs and a resilient economy. Natural gas prices have doubled since the start of the war in Iran. Eurozone inflation returned to 3% in July, while rates stand at 2.4%. For borrowers with variable-rate mortgages, more hikes mean higher monthly payments.
→ Read the full digestSpain's pension spending reached a record €14,470 million in August, up 6.2% year-on-year. The system paid 10.5 million pensions to more than 9.5 million beneficiaries. The average pension was €1,373.4, up 4.6%, while the average retirement pension was €1,575. The average retirement age rose to almost 66 years. The rising bill and later retirement age matter for anyone planning to retire in Spain.
→ Read the full digestThe OCU estimates families will spend an average of €2,484 per child for the 2026-2027 school year, up about 6% from last year. Public school costs €1,294, concertado €3,450, and private school €8,761. Madrid leads at €3,512 per child, followed by Cataluña at €2,994. The survey included 773 parents with children aged 3 to 18.
→ Read the full digestSpain's major banks closed 440 branches in the year to June, reducing the network to 9,984 offices and earning record profits of €20,164 million in H1. Santander closed 266 branches, more than all other banks combined. The non-performing loan ratio fell to 2.54%, the lowest since August 2008, with bad loans down €272 million. Fewer branches can make in-person banking harder in rural areas.
→ Read the full digestThe government will issue a royal decree to take full control of new data center deployment. Companies must submit compliance declarations, and projects without grid access permits can be halted. The aim is to avoid electricity price spikes and grid imbalances seen in Ireland, the Netherlands, and the US.
→ Read the full digestSpain's monthly pension spending reached a record €14,470 million in August, up 6.2% from a year earlier. Social Security paid 10.5 million pensions to more than 9.5 million people, with the average pension up 4.6% to €1,373.4. The average retirement pension is €1,575; new retirees receive €1,707.2 on average. Rising pension costs matter for long-term system sustainability.
→ Read the full digestA 23% drop in the French potato harvest and a Spanish crop hit by high temperatures could push potato prices up. French imports have already risen 33% over a decade, from 708,000 tonnes in 2016 to 941,000 in 2025. Spanish production is estimated at 1.96 million tonnes, but COAG says 20,000 more hectares would be needed to cover demand.
→ Read the full digestSpanish household electricity prices rose 8.3% year-on-year in July, compared with an EU average of 1.6% and a eurozone average of 2.1%. Among major economies, only Italy posted a bigger increase at 13%, while bills fell 5.3% in Germany and 1% in France. Eurostat links the rise to energy price volatility from the war in Iran.
→ Read the full digestA Fedea study finds 33.8% of minors in Spain are at risk of social exclusion, driven mainly by the high cost of raising children rather than parental unemployment. The child monetary poverty rate was 28.3% in 2025, far above the EU average of 19.3%. Around 9.48 million people, or 19.5% of the general population, were at risk of monetary poverty.
→ Read the full digestDiesel reached €1.875 per litre on August 23, up 21% since July 1; petrol 95 hit €1.735, up 13% and the highest in four years. Filling a 55-litre diesel tank now costs about €103.10, roughly €18 more than in early July. Prices climbed with international oil markets, with Brent around $72.
→ Read the full digestPotatoes recorded the biggest food price increase in August, up 14%, with a 5-kg mesh at Hipercor rising from €5.99 to €7.75. Conference pears at Carrefour rose 20.3% to €2.55, and De Cecco macaroni rose 10% to €2.85. Extra virgin olive oil fell 6%, while seedless white grapes fell 18%.
→ Read the full digestRyanair rejected Transport Minister Óscar Puente's statements as false, saying its capacity decisions in Spain are due to Aena's tariff model, not a shortage of aircraft. The airline says it has received all 210 Boeing MAX-8200 aircraft ordered and has assigned new planes to Morocco, Italy, Albania, Poland, Slovakia and Sweden. It blames Aena's pricing model for reduced service at Spanish regional airports.
→ Read the full digestInternational investors have financed almost all of Spain's debt increase since the end of 2022, amounting to €244,128 million by May 2026. That support has helped Spain weather bond market tensions even as borrowing costs have hit their highest level since 2017. Spain's bond yield has tracked Germany's and has remained better than Italy's and France's.
→ Read the full digestCentral bankers will gather in Jackson Hole, Wyoming, from August 27 to 29 with inflation and energy shocks on the agenda. ECB President Christine Lagarde will attend the annual symposium, which focuses on financial innovation. Eurozone inflation was 2.9% in July and energy prices rose 10%. The ECB was the first among major central banks to raise rates in June, and signals here will shape mortgage costs.
→ Read the full digestSpain's pension funds could lose €74 billion by 2040 unless new incentives are introduced, according to INVERCO. The industry group wants individual pension plans and investment funds to be included in the European savings account (CAI). Since the 2021 reform, €12.5 billion has stopped flowing into individual plans, and annual contributions were cut to €1,500.
→ Read the full digestBack-to-school spending ranges from €505 to €1,849 per child depending on school type and region. Cetelem puts the average at €478, up 12% from €425 in 2025. Some 65% of families say they are economically affected, up from 46% last year, and 48% turn to second-hand items, saving an average of €193. A basic basket costs €505.16, 1% more than in 2025.
→ Read the full digestInés Bermejo, CEO of HP Iberia, highlights Spain's combination of talent, infrastructure, and lifestyle as a draw for investment, despite Spain not being the best in any single area. She started at HP over 25 years ago as an intern. AI is seen as a key opportunity for companies to differentiate themselves.
→ Read the full digestThe Euribor index reached 3.003% on Friday, passing 3% for the first time since September 2024. The rise from about 2.2% in January stems from inflation driven by the Middle East conflict and higher energy prices. Variable-rate mortgage holders may pay around €76 more per month, or €911 per year, according to Kelisto. The increase hits those with upcoming rate reviews and new borrowers.
→ Read the full digestThe government extended the Almaraz nuclear plant's operation to 2030, with its two reactors now running until June and October 2030 instead of closing in 2027 and 2028. The decision responds to the energy crisis from the war in Iran. The extension could affect closure plans for Ascó I and Cofrentes, but the Ministry of Ecological Transition says the general calendar is unchanged.
→ Read the full digestSpanish imports of olive oil from non-EU countries rose 83.9% in the first five months of the year, reaching 73,400 tonnes. Total imports of oils and fats increased 23.6% in value to €3,077 million in the first half of 2026, while exports fell 6.5% to €3,608 million. The industry links the surge to lower-than-expected Spanish production.
→ Read the full digestThe average wholesale electricity price will fall to €94.57 per MWh on Saturday, the first time below €100 in 12 days and down 17.03% from Friday's €113.98. Hourly prices will range from zero or negative between 11:00 and 17:00 to a peak of €172.59 between 21:00 and 22:00. Year-on-year, the price is still 76.40% higher than the €53.61 on August 22, 2025.
→ Read the full digestIn 2027, Spain will raise social security contributions for high salaries and companies for the third consecutive year. The MEI rate rises from 0.9% in 2026 to 1%, with employers paying 0.83% and workers 0.17%. A higher maximum contribution base and solidarity quota add to the bill, while maximum pensions revalue more slowly, so high earners pay more without equivalent future pension benefits.
→ Read the full digestFrom July 10, 2027, an EU regulation caps cash payments at €10,000 for single or related transactions in goods and services. The rule applies to financial entities, auditors, tax advisors, notaries, lawyers, and certain goods traders; football clubs and agents are included from July 10, 2029. Large cash purchases in Spain will require bank transfers instead.
→ Read the full digestFuel prices have increased for seven consecutive weeks since the reduced VAT ended in early July. Diesel rose 0.38% this week to €1.828 per liter, while gasoline rose 0.17% to €1.705. Diesel is up 21.5% and gasoline 18.5% since the VAT break ended. August is expected to see 54.5 million long-distance trips.
→ Read the full digestA Fedea study of 179,000 retirees found 282 additional deaths among people aged 60 to 67 due to longer working life, with stronger effects in arduous professions such as miners, railway workers, and firefighters. The pension bill does not decrease despite later retirement.
→ Read the full digestBanco Santander closed the acquisition of Webster Bank for about €10.5 billion, becoming one of the ten largest retail banks in the United States. The deal involved a capital increase of about €3.5 billion, with 65% paid in cash and 35% in new shares. US authorities and the ECB approved the transaction.
→ Read the full digestSpain's Tax Agency is investigating 35 cases of possible VAT fraud in the hydrocarbon sector, following the Aldama case involving €180 million in fraud. Five of the top ten tax debtors are fuel companies owing about €900 million, including Bio Zenite Energy (€232.9 million), Metaway Combustibles (€195.6 million), and Vertix Petroleum (€194.7 million).
→ Read the full digestEurozone annual inflation rose to 2.9% in July, up from 2.8% in June, while EU inflation reached 3%. Energy prices jumped 10.3% year-on-year and core inflation edged up to 2.5%. Spain's harmonized inflation was 3.9%, above the eurozone average. The data moves the ECB further from its 2% target and increases the likelihood of another interest rate hike, which would raise borrowing costs for mortgages and loans.
→ Read the full digestConsumer credit reached 24.5 billion euros in the first half of 2026, up 12% year-on-year, while mortgage lending grew 3.3% to 42.61 billion euros. It is the highest consumer credit volume since 2007. A survey shows 36% of consumers plan to request consumer credit in the second half of 2026, the highest since 2020.
→ Read the full digestSpain's Ministry of Social Rights, Consumer Affairs and Agenda 2030 has fined car rental company Avis one million euros. Avis charged customers between 33.88 and 45 euros to identify drivers for traffic fines, a step the company is legally required to carry out. The ministry considers the clause abusive because it shifts a legal obligation cost to consumers.
→ Read the full digestInternational tourists in Spain spent an average of 46.77 euros per transaction in early summer 2026, 62% more than residents' 28.88 euros. Total international tourist spending reached 63.836 billion euros in Q1, up 7% year-on-year. Spain received 46.6 million international tourists in the first half, up 4.6%.
→ Read the full digestSpain is split in two by housing prices and the income needed to afford them, according to economist Santiago Niño Becerra. Rising prices are excluding an increasing number of potential buyers. Many citizens cannot reach the savings capacity needed to buy a home. The gap is creating deeper inequality between those who can access property and those who cannot.
→ Read the full digestSpain's consumer ministry fined car rental company Avis €1 million for charging customers to process traffic fines. Avis charged between €33.88 and €45 per fine to identify drivers, a legal obligation the company already has. The ministry classified the charges as abusive and a violation of consumer law. The fine is the maximum for a very serious infringement.
→ Read the full digestSpain's public debt reached a new all-time high of €1.763 trillion in June, up 4.2% from a year earlier. The debt-to-GDP ratio fell to 101.5% from 103.4%, driven by economic growth. State debt accounted for €1.6 trillion, or 92.2% of GDP, while Social Security debt stood at €136.178 billion, 7.8% of GDP.
→ Read the full digestDiesel prices in Aragón have climbed 23% this summer, reaching €1.831 per liter. The current price sits close to the March 21 record of €1.947. Drivers face higher costs from the Iran conflict, the end of the VAT rebate, and seasonal demand.
→ Read the full digestSpain's goods exports reached a record €35.545 billion in June, driven by a 49.9% surge in energy exports. First-half exports rose 2% to €201.134 billion. Imports increased 15.7% to €43.232 billion in June, leaving a trade deficit of €7.686 billion.
→ Read the full digestRenfe is moving to homologate its Talgo series 106 and 107 high-speed trains for Portugal. Transport Minister Óscar Puente announced the shift after regulatory barriers delayed expansion to Paris. Spain aims to have cross-border connections ready by 2030.
→ Read the full digestElectricity prices in the first half of August point to a bill above €101 for PVPC users, the highest since 2022. Facua calculates the bill at €101.23 if prices hold. Prices are up 17.3% year-on-year, with peak-hour kWh at 27.74 cents, flat at 19.29 cents, and valley at 21.34 cents including indirect taxes.
→ Read the full digestMadrid City Council collected more than 100 million euros in low-emission zone fines between 2022 and the first quarter of 2025, according to an audit. Total collections reached 105 million euros. Low-emission zones should be implemented in 24 municipalities with over 50,000 inhabitants, but only 10 of 19 municipalities had regulated zones by March 31, 2025; eight were fully operational. Four municipalities were drafting regulations, four were in the public information phase, and Arganda del Rey had not started. Five municipalities did not provide data: Collado Villalba, Colmenar Viejo, Getafe, Parla, and Valdemoro.
→ Read the full digestSpain has received over 78 billion euros, 76.5% of its allocated Next Generation EU funds. More than 1.02 million SMEs and micro-enterprises have received funding, about 68% of the total number of SMEs. Spain contributed 41% of all new EU jobs in 2025 and met 338 milestones and objectives. Brussels disbursed the sixth tranche of 6,234 million euros in August.
→ Read the full digestNeobank penetration in Spain exceeded 27% in 2025, up from 21.8% in 2024. Monzo Bank will start operations in Spain in the second half of 2026, offering 25 euros and a 2.5% interest-bearing account; Monzo has over 15 million customers. Twelve plans to launch on December 12 in Madrid, Barcelona, and Burgos. Twelve raised 1.1 million euros from Tokenized Green, Wolver Ventures, and Fundación Caja de Burgos.
→ Read the full digestSpain has renewed the operating permit for the two Almaraz nuclear reactors until at least June 8, 2030, pushing back previous closure dates of 2027 and 2028. Spain has seven reactors in five plants, making it the EU's second-largest nuclear operator after France, with total installed capacity of 7,398.77 MW. Nuclear power supplied 19% of Spain's electricity in the first half of 2024, and Almaraz generated about 30% of that nuclear output.
→ Read the full digestJuly inflation reached 3.6% as diesel prices jumped 15.7% year-on-year, crossing the 15% threshold set in Real Decreto-ley 18/2026. The safeguard clause under the Plan de Respuesta automatically raises the diesel fuel tax rebate to 20 cents per liter in September instead of the 5 cents initially planned. Gasoline rose 7.3% year-on-year and remains under the ordinary gradual withdrawal, with a 5-cent rebate in September. Electricity posted an annual rate of 8.4%.
→ Read the full digestShein said it will raise prices in Europe to partly offset the EU's €3 tax on packages under €150 from third countries, in force since July 1. The company disclosed the plan in a filing for its Hong Kong stock exchange debut. Temu and AliExpress have not yet commented or announced a strategy. Spain receives more than 180 million such packages per year, and 59% of EU packages originate in China.
→ Read the full digestVueling will restart flights between Madrid and Barcelona on October 5, 2026, after suspending the route in April 2025. It will offer 10 weekly flights initially, rising to 11 from October 11 when Saturday flights are added. Tickets are already on sale through March 29, 2027. The airline says the route is a response to higher demand, particularly from business travelers.
→ Read the full digestFerrovial will delist from Euronext Amsterdam after its last session on September 10, 2026, with the delisting effective on September 11. It will continue trading on the Nasdaq and Spanish exchanges, where average volumes reached 59.21% and 40.63%, respectively. The company moved its headquarters to the Netherlands in 2023 to support its US listing. Chaired by Rafael del Pino, Ferrovial notified the CNMV and said the move simplifies its listing structure.
→ Read the full digestAn ICEX-KPMG study finds 97% of Chinese companies in Spain plan to maintain or increase investments in 2026, with 71% expecting to keep or expand workforces. Automotive and battery companies represent 13% of the firms analyzed and are among the top three sectors. Separately, the Defense Ministry will approve Chinese automaker SAIC's factory in Ferrol, reversing earlier security warnings about its location five kilometers from a naval base. Defense Minister Margarita Robles called Galician president Alfonso Rueda to confirm the favorable opinion, without prejudice to operational conditions that may be necessary.
→ Read the full digestInterest payments on Spain's regional debt will climb from €3,608 million in 2022 to €11,528 million by 2029, according to Fedea. The increase follows European Central Bank monetary tightening and higher interest rates. Rising debt costs may force regional governments to review spending in education, health, and fire prevention. The debate over regional financing reform is expected to open in September.
→ Read the full digestDiesel and gasoline prices in Spain steadied before the August 15 Operation Salida, with diesel at €1.806 per liter and gasoline at €1.691. Filling a 55-liter diesel tank costs an average of €99.30; a gasoline tank costs about €93. Prices remain below their March 21 peaks of €1.942 for diesel and €1.796 for gasoline. A July 29 royal decree ended the 10% VAT cut on fuels and reduced the special hydrocarbon tax rebate from 15 cents to 10 cents per liter.
→ Read the full digestThe European Commission disbursed 6.23 billion euros under NextGenerationEU, bringing the total recovery funds Spain has received to 78 billion euros, equivalent to 76.5% of its allocation. The payment includes 5.97 billion from the sixth request and 265 million from suspended milestones. Spain has met 60% of its Recovery Plan commitments.
→ Read the full digestWomen in Spain receive an average retirement pension of 1,267.48 euros, a monthly gap of 528.17 euros compared with men's 1,795.65 euros. The 29.4% gap, down from 40% in 2012, has barely fallen below 30% and remains above the EU average. The system penalizes interrupted careers, which often stem from caregiving responsibilities.
→ Read the full digestSpain's Ibex 35 rose 0.2% to close at 20,213 points, a record high. Oil prices rose on stalled US-Iran talks, with Brent crude up 0.8% to $88.5 a barrel. European indexes were mixed, while Wall Street traded lower.
→ Read the full digestRevolut Bank has secured a full banking licence in France, placing its Spanish business under regulatory oversight from Paris. Deposit guarantees for accounts in Spain and other Western European markets will now originate from France, while other regions remain under Lithuanian protection. Revolut has invested more than €1 billion in the region and plans to add more than 600 staff, opening a Paris headquarters in 2027.
→ Read the full digestThe average return on bank deposits in Spain rose to 1.92% in June, the highest since March 2025, following the ECB's rate hike to 2.25%. The yield is up more than 17% year-on-year, and the best promotions now top 3%, with neobanks and foreign institutions driving competition. Savers can find offers such as Deutsche Bank at 3.25% TAE and Revolut at 3.51%.
→ Read the full digestThe Defense Ministry and the CNI intelligence agency have warned Galicia's regional government that SAIC Motor's planned car plant in Ferrol could be used to spy on nearby naval facilities. The site, about five kilometers from the military arsenal, sits close to a Navantia shipyard that builds Navy frigates equipped with sensitive radar systems. The investment has backing from Prime Minister Pedro Sánchez and Xunta president Alfonso Rueda, though national security concerns may complicate approval.
→ Read the full digestThe average mortgage financing cost rose to 2.89% in June, up from 2.67% at the start of the year, reaching its highest level since January 2025. The increase follows an earlier-than-expected ECB rate hike triggered by the Middle East conflict and its effect on the Euribor. Spain's six largest banks are also under CNMC investigation for possible anticompetitive practices, while fixed-rate segments of mixed mortgages have been revised upward.
→ Read the full digestNew US tariffs of 25% to 50% on artificial quartz surfaces take effect on Aug. 15, directly striking Almería-based Cosentino. The multinational draws half its sales from North America. The measure was requested by US rival Cambria, whose CEO is a Trump donor; Canada, Mexico, and several other countries are exempt while the EU is not.
→ Read the full digestRetail investors poured €15 billion into Spanish Treasury bills over six months, driving household holdings to a record €20.331 billion in May. The six-month bill yielded 2.512% at the latest auction, the highest since January 2025, while 12-month bills reached 2.679%, the best since September 2024. The surge reflects oil prices rising over 40%, inflation above 3%, and the ECB's June rate hike. Savers can access these higher returns directly through the Treasury's website.
→ Read the full digestThe UN Food and Agriculture Organization's (FAO) food price index rose 0.6% in July to 131.1 points, the highest since January 2023, though still 18.2% below the March 2022 peak. Cereal prices surged 3.4% month-on-month on wheat supply worries, while vegetable oils hit their highest since June 2022. Rising global costs may feed into higher grocery bills in Spain.
→ Read the full digestThe Ibex 35 closed Friday at 20,176 points, snapping a streak of four record highs with a fractional loss. The dip followed US jobs data showing 23,000 positions lost in July, the worst since 2010. Despite the slip, the index gained nearly 2% for the week and is up 16.7% year-to-date.
→ Read the full digestPetrol and diesel prices in Spain have jumped dramatically in the past five weeks, the sharpest July-to-August increase in two decades. The removal of a fuel tax rebate and the return of VAT to 21% pushed petrol from €1.44 to €1.69 per litre, up 17.3%, and diesel from €1.50 to €1.79, up 19.3%. Despite the spike, prices remain below the 2022 peaks of €2.11 for petrol and €2.08 for diesel. The increases directly affect driving costs during the busy summer travel season.
→ Read the full digestSpain's benchmark stock index, the Ibex 35, extended its record streak to four sessions, closing at 20,180.4 points after briefly topping 20,300. The index has gained more than 16% year-to-date, buoyed by hopes of a US-Iran deal that would reopen the Strait of Hormuz. Cellnex, Acciona Energía, Telefónica, and Unicaja led the session's gains. The rally signals confidence in Spanish equities and can boost the value of investment portfolios and pension funds.
→ Read the full digestFrom November 2026, a deposit return system (SDDR) will apply to plastic bottles, glass containers and aluminium cans. Consumers will pay around 10 cents per container, refunded when the container is returned. The EU requires a collection rate of at least 70% for these waste items, but Spain only collected 41.3% of single-use plastic bottles in 2023. The measure aims to boost recycling and avoid EU fines, directly changing daily shopping habits.
→ Read the full digestSpain’s Ibex 35 closed on Wednesday at 20,057 points, consolidating a rally of more than 40% over the last year. Gains were driven by banks and better-than-expected corporate results. The previous record near 16,000 points from 2007 was surpassed nearly a year ago. People with savings, pensions or investment exposure in Spanish assets are seeing the effect of this long bull run.
→ Read the full digestIn July, Chinese-controlled brands reached a record 14.27% of passenger car sales in Spain, with 107,008 registrations out of the 749,656 units sold from January to July. More than 30 brands have entered the market in about two years, backed by manufacturers such as SAIC, BYD, Chery and Geely. The growing presence brings more choice and price competition for anyone buying a car in Spain.
→ Read the full digestSpain's benchmark Ibex 35 index closed at a record 20,023 points, up 0.21%, as European and US markets also advanced. Brent crude oil rose 1.6% to €86 a barrel, and ArcelorMittal shares gained on steel industry recovery signals. The milestone affects investments, pensions, and savings across the country.
→ Read the full digestThe Treasury sold €6,215 million in six- and twelve-month bills, with the 12-month marginal interest rate jumping from 2.523% to 2.679%. The 6-month bill yield rose to 2.512%, the highest since January 2025, as total demand hit €11,079 million. Rising yields can push up mortgage rates and savings returns for households in Spain.
→ Read the full digestThe €400 million Plan Auto+ program began accepting applications on August 4 for purchases made from January 1, 2026. Subsidies reach up to €4,500 for passenger cars and €5,000 for light commercial vehicles, and dealers must provide at least a €1,000 discount. Those buying an electric car in Spain can apply online.
→ Read the full digestInternational tourist arrivals rose 4.6% in January–June to 46.56 million, with spending climbing 7% to €63.84 billion, according to industry figures. The UK was the top source market with more than 9.3 million visitors, followed by Germany (5.7 million) and France (5.6 million). The average tourist spent €1,393 per trip, and the most common length of stay was four to seven nights. The surge in visitors supports jobs but adds to housing and price pressures in popular cities.
→ Read the full digestSpain's Ibex 35 index rose 1.01% to 19,982 points, an all-time closing high, as oil prices eased on hopes of US-Iran talks. The index has gained 15.45% so far in 2026. Brent crude fell below $84 a barrel after President Donald Trump said talks with Iran would resume, though Iran denied this. The rally boosted Spanish equities across the board.
→ Read the full digestAfter mortgage lending jumped nearly 18% to about 500,000 loans in 2025, Spanish banks are now tightening access to credit or raising requirements. The housing crisis, marked by high prices and scarce supply, is making it harder for buyers to secure financing. The cooling mortgage market adds another burden for families already struggling to afford a home. For anyone looking to buy property, higher down payments and stricter criteria are now likely.
→ Read the full digestThe average price of petrol hit €1.705 per litre on August 1, the highest since March, and diesel topped €1.8 per litre. The government cut the fuel tax rebate from 15 to 10 cents per litre. It will drop further to 5 cents in September and expire in October. Both fuels have risen for about 20 consecutive sessions, gaining about 3 cents in a single day. The end of the subsidy will steadily raise transport costs for all drivers.
→ Read the full digestShort-term Spanish Treasury bill yields have climbed, with the nine-month bill reaching 2.63% in July, the highest since November 2024. The ECB's 25-basis-point rate hike in June and expectations of further increases after summer are driving demand for Letras del Tesoro. Spanish savers held €20,331 million in Treasury bills in May, a sign of revived appetite. Savers with money in Spanish Treasury bills can benefit from the improved returns.
→ Read the full digestSpain's consumer price index rose to 3.5% in July, up from 3.2% in June, and has now stayed above 3% for five months. Core inflation, which excludes unprocessed food and energy, edged up to 3%. Fuel and electricity costs, partly driven by the Iran conflict, are the main factors.
→ Read the full digestSpain's economy expanded 0.7% in the second quarter, accelerating from 0.6% in Q1. Year-on-year growth held at 2.7%. Household consumption grew 0.7%, investment 0.4%, and exports 0.8%. The economy has now grown for 21 consecutive quarters compared to a year earlier.
→ Read the full digestThe government's fuel discount dropped from 15 to 10 cents per liter on August 1, coinciding with the start of the August holiday exodus. Petrol now costs €1.64 per liter and diesel €1.74. Since early July, petrol has risen 7.8% and diesel 14.3%, pushing the cost of a 50-liter fill-up to around €82–87.
→ Read the full digestThe 12-month Euribor is set to close July at an average of 2.8%, the highest since September 2024. For a typical €150,000 mortgage over 25 years, that means an extra €712 per year — an 8% increase. The rise follows signals that the ECB will lift rates further in September. Variable-rate mortgage holders, including many foreign residents, will feel the squeeze on their monthly budgets.
→ Read the full digestAirport operator Aena posted a first-half net profit of €1,002 million, up from €893 million a year earlier, with passenger numbers rising 3.7% to 156.2 million. The company raised its annual traffic growth forecast to 3%, citing Spain's image as a safe destination and disruptions in high-speed rail. The increase could mean busier airports and more travel options for travelers.
→ Read the full digestA minimum €3 surcharge per product category on non-EU imports under €150 took effect July 1, targeting platforms like Shein, Temu, and AliExpress. Economist Santiago Niño Becerra says the fee will mainly boost tax revenue without driving consumers to local shops. Over 90% of such imports come from China. Shoppers who rely on these platforms may notice slightly higher costs.
→ Read the full digestChinese electric vehicle maker BYD saw pre-tax profit in Iberia jump 349% to €15.5 million in 2025, with revenues climbing from €176 million to €789 million. The company added 30 employees, reaching 82, and credits better productivity and scale. The growth reflects rising electric vehicle adoption in Spain, which could expand charging networks.
→ Read the full digestEconomist Gonzalo Bernardos pointed out that Spain's pension replacement rate exceeds 82% of a worker's last salary, higher than in Germany. He warned that this generous system will be hard to maintain and predicts later retirement ages for future generations. This insight is relevant for anyone contributing to social security and planning retirement in Spain.
→ Read the full digestRising fuel prices mean filling a gasoline car can cost about €90, while charging an electric vehicle at home runs €5 or less. The per-kilometer savings can exceed 90%. This is making EVs more attractive for cost-conscious drivers across Spain.
→ Read the full digestThe Spanish government approved an additional €17.9 billion for electricity network investment through 2030 to support renewable energy and rising demand. A separate €615 million modification to grid planning is expected to save €450 million annually. The upgrades aim to connect housing, industry, and electric transport, improving energy reliability for all residents.
→ Read the full digestThe average household on a regulated tariff will pay about €56.70 in July, up 19% from June's €47.65. Heatwaves and the Iran conflict drove up demand and natural gas costs, following a 17% rise in June, when VAT returned to 21%. Year on year, the bill is roughly 13% higher. Regulated tariff customers should brace for higher summer energy costs.
→ Read the full digestThe Council of Ministers will declare wildfire-affected areas as disaster zones, unlocking aid for damaged homes, businesses, and farms. Compensation amounts, unchanged since 2005, include up to €15,120 for a totally destroyed primary residence and €18,000 for death or permanent disability. Property owners in the fire zones can apply for these payouts.
→ Read the full digestGeely is investing €221 million for a 34% stake in Ford’s Almussafes plant, raising annual capacity from 90,000 to 400,000 units. The deal secures jobs for 4,296 workers who will return to regular work. Other Chinese groups like Chery have formed similar alliances in Spain.
→ Read the full digestDiesel now costs €1.75 per liter and gasoline €1.664, marking increases of 21.3% and 11.2% compared to last year. Filling a standard 55-liter tank costs over €91 for gasoline and over €96 for diesel. With more than 104 million road trips expected this summer, the end of fiscal fuel measures on June 30 is driving up prices.
→ Read the full digestThe European Commission is consulting on a new regulation to expand oversight of foreign investments, particularly targeting critical materials and industries. Spain’s openness to Chinese investments, such as at the Ford plant, is under scrutiny. The rule could also affect US technology investments, creating potential hurdles for foreign business owners.
→ Read the full digestFrom July 1, 2026, any package from outside the EU valued under €150 incurs a minimum €3 surcharge per product category. Over 90% of such shipments come from China, affecting platforms like AliExpress, Shein, and Temu. Economist Santiago Niño Becerra doubts the fee will shift shoppers to local stores, predicting it will mainly raise tax revenue.
→ Read the full digestBrent crude oil crossed the $100 per barrel threshold as the Iran conflict intensifies, threatening global supply. Around 20% of world oil transits the Strait of Hormuz, now highly militarized, while disruption at Bab el-Mandeb could cut another 7%. European gas prices have climbed above €62 per megawatt-hour. The spike risks higher inflation and prolonged elevated interest rates, directly squeezing household budgets and mortgage costs across Spain.
→ Read the full digestThe European Central Bank kept interest rates unchanged at 2.25%, with President Christine Lagarde citing a unanimous decision despite some pressure to raise them due to the Iran conflict and the closure of the Strait of Hormuz. Meanwhile, Brent crude jumped 6.22% to $100 per barrel after Houthi militants attacked two Saudi tankers in the Red Sea and the US continued its offensive against Iran. The spike in oil prices means higher fuel and energy costs for households across Spain.
→ Read the full digestThe Spanish government won parliamentary backing for an anti-crisis decree that extends fuel tax cuts through October and continues the rent cap until July 2028. The package also includes aid for farmers and transporters, with a clause allowing measures to be reactivated if the Middle East conflict worsens. The relief comes as oil prices hover near $100, threatening household budgets. Residents benefit directly from lower fuel prices and continued limits on rental increases.
→ Read the full digestThe United States announced new tariffs of 10% to 12.5% on 60 trade partners — 59 countries plus the European Union — citing an ineffective ban on imports made with forced labor. The duties, based on Section 301 of the 1974 Trade Act, replace a temporary tariff that expires Friday. Spanish exports to the US could take a hit, potentially slowing growth and affecting job opportunities.
→ Read the full digestThe European Central Bank is expected to keep its key interest rate at 2.25% this month after eurozone inflation eased to 2.8% in June, its first decline in 2026. Analysts, however, see a possible rate hike in September if oil prices push inflation up again. The decision affects Euribor, the benchmark for many variable-rate mortgages in Spain, leaving homeowners in a holding pattern. With eurozone GDP stagnant in the first quarter, monetary policy remains cautious.
→ Read the full digestHospitality associations warn that a proposed anti-tobacco law banning smoking on terraces could force the closure of 30,000 bars and cost up to 300,000 jobs. The legislation, already approved by the Council of Ministers, still needs parliamentary approval. Terraces account for 30-50% of revenue for many establishments, making the ban a potential death blow. The sector, which employs many foreign workers, is bracing for a major hit.
→ Read the full digestFord and Chinese automaker Geely have agreed that Geely will use an idle assembly line at the Almussafes plant in Valencia to produce vehicles. Ford retains ownership of the plant, which once built 420,000 cars a year but now has a surplus of 1,000 workers. The deal, attended by President Pedro Sánchez, secures the plant's future and brings much-needed jobs to the region. Foreign nationals in Valencia stand to benefit from the industrial investment.
→ Read the full digestThe Bank of Spain reported that banks tightened credit standards for home mortgages and business loans in the second quarter of 2026. Loan demand fell across both segments, partly due to the war in Iran. The central bank expects the tightening to continue in the third quarter. Foreign residents seeking mortgages or business financing may face stricter conditions and higher costs.
→ Read the full digestPayment fraud is now the top risk for banking clients, the Bank of Spain warns in its 2025 complaints report. Fraud-related complaints jumped 18% from the prior year. Banks paid out €6.8 million in settlements, with CaixaBank and BBVA receiving the most complaints. Total complaints fell 45% to 30,970, largely due to normalization after mortgage cost rulings.
→ Read the full digestThe government activated the Auto+ plan, providing subsidies of up to €4,500 for the purchase of electric and hybrid vehicles. The plan has a €400 million budget and covers purchases made since January 2026. An additional €600 million was approved to help energy-intensive industries offset decarbonization costs.
→ Read the full digestThe price of a traditional butane cylinder in Spain rose 16% to €17.83. The main driver was the restoration of VAT from the temporary 10% rate to 21%. Without the VAT change, the increase would have been only 4.94%. This directly raises household expenses for the millions of residents who rely on butane for cooking and heating.
→ Read the full digestThe General Council of Economists revised its 2026 inflation forecast for Spain upward to 2.9%, while maintaining GDP growth at 2.4%. The government expects 2.6% growth, and the eurozone is forecast to grow just 0.9%. Some analysts predict inflation could reach 3.2%. Rising prices will continue to pressure household budgets across the country.
→ Read the full digestRyanair's net profit fell 34% in its fiscal first quarter to €538 million. The airline cited a 6% drop in average fares and higher fuel costs, even as passenger numbers rose 6% to 61.3 million. Total revenue edged up 1% to €4.38 billion. The results may signal continued low fares for travelers using the budget carrier.
→ Read the full digestThe European Commission fined AliExpress €550 million for violating the Digital Services Act. The platform allowed the sale of counterfeit goods, unsafe toys, and dangerous cosmetics, often leaving listings live for weeks after detection. The penalty aims to enforce stricter controls on product safety, which could affect online shopping for Spanish consumers.
→ Read the full digestPrime Minister Pedro Sánchez traveled to Algeria to normalize diplomatic relations and negotiate a 10% increase in gas supply. Algeria already supplied 35% of Spain's gas imports in 2025, while the US provided 30%. A deal could help stabilize energy costs for households.
→ Read the full digestOlive oil prices rose 2.2% in June compared to last year, breaking a 19-month streak of declines. The peak was in October 2023 with a 73.5% surge. Asaja warns that 70% of traditional olive groves are unprofitable, and US trade tensions are hurting exports.
→ Read the full digestThe government will resubmit its fiscal stability path to Congress, expecting another veto. After a second rejection, it will apply deficit targets agreed with the European Commission. The move aims to maintain fiscal credibility amid political deadlock.
→ Read the full digestMajor lenders including Santander, BBVA, and CaixaBank are establishing subsidiaries for family fortunes exceeding €30-50 million. The number of wealthy taxpayers in Spain rose nearly 30% to a record 18,829. Banks are also tailoring savings offers, potentially leaving average savers with less favorable conditions.
→ Read the full digestSpain's tourism industry generated €200 billion in 2024, accounting for 12.6% of GDP and supporting 2.7 million jobs. The country was the second most visited globally, with international tourists spending €105.1 billion. The data comes amid a World Cup final matchup against Argentina, whose economic strength lies in agro-food exports.
→ Read the full digestEurozone annual inflation fell to 2.8% in June from 3.2% in May, hitting its lowest level since March. Energy price growth slowed to 8.5%, helping push core inflation down to 2.4%. The drop eases cost-of-living pressures and could strengthen the case for the ECB to cut rates, affecting mortgages and savings. Sweden, the Czech Republic and Denmark posted the lowest rates in the bloc.
→ Read the full digestThe European Commission wants to simplify banking regulation and move Europe away from a 'zero tolerance to risk' culture, aiming to make EU banks more competitive. The non-binding plan calls for focusing on systemic risks rather than eliminating all risk. The ECB has voiced concerns about deregulation. Legislative proposals are expected in early 2027, which could eventually affect mortgage and loan access in Spain.
→ Read the full digestGovernment investment per inhabitant ranged from €590 in Murcia to just €101 in the Canary Islands in 2025, with a total exceeding €15.3 billion. Galicia received €582 per capita, while Catalonia got €163. In absolute terms, Madrid attracted €3.2 billion, followed by Valencia and Andalusia. These gaps affect the quality of public services and infrastructure available to residents.
→ Read the full digestEconomists predict food inflation across Europe will reach 5–9% in 2027, driven by the war in Iran and intensifying heatwaves. Heatwaves alone could add up to 1 percentage point to annual inflation, while rising production costs contribute another 0.5–0.7 points. The forecast signals higher grocery bills for Spanish households, adding to the cost-of-living squeeze.
→ Read the full digestGasoline and diesel prices have increased for a second straight week following the return of full 21% VAT. A litre of gasoline now costs €1.541 on average, up 1.58%, while diesel sits at €1.549, a 0.91% rise. A new government discount of 15 cents per litre in July, sliding to 10 cents in August and 5 cents in September, aims to cushion the impact. Commuters and drivers across Spain will feel the pinch at the pump.
→ Read the full digestThe Audiencia Nacional annulled the €25 million penalty that the competition watchdog CNMC had imposed on Iberdrola for allegedly manipulating electricity prices in 2013. The move follows a criminal court's acquittal of the energy giant on the same facts. The ruling limits regulators' ability to punish past market conduct and could influence future energy oversight.
→ Read the full digestSpain's consumer price index stayed at 3.2% in June for the third consecutive month, according to final data from the INE. A 5.1% monthly drop in fuel prices and softer food inflation offset a 16.1% jump in electricity costs. The government's Middle East response plan and a new fiscal package helped contain prices, though the VAT reduction on fuels was swapped for a lower hydrocarbon tax.
→ Read the full digestThe Ministry of Economy has given the state-owned ICO a 30-day deadline to present financial instruments for the Spain Crece sovereign fund. The fund, designed to replace EU recovery money after August 31, aims to mobilise €120 billion with a focus on housing, renewable energy, and SME financing. It will rely on €13.6 billion from EU funds.
→ Read the full digestThe European Commission is in talks with Washington to remove a 15% tariff on €115 billion worth of EU exports, including olive oil, wine, cheese, and machinery. The negotiation follows a trade treaty ratified in May; the EU scrapped its tariffs on US goods on July 1. Meanwhile, President Trump had threatened 25% duties on European cars.
→ Read the full digestThe Treasury placed €2,126 million, with the 9-month yield reaching 2.630%. The 12-month yield fell to 2.523%. Higher short-term yields signal rising interest rates, which could push up mortgage costs for variable-rate loans and improve returns on savings.
→ Read the full digestElectric vehicles now represent 13% of Chinese FDI in Spain, with the CATL-Stellantis gigafactory in Figueruelas standing out. Energy (17%) and logistics (14%) remain top sectors. This investment could create jobs and business opportunities in the automotive and green energy fields.
→ Read the full digestOil prices surged 4.5% to $79.7 per barrel and Spain's Ibex-35 dropped 0.25% to 19,300 points after renewed hostilities between the United States and Iran. Asian markets also fell sharply: Shanghai lost 2.06%, Shenzhen 3.48%, and the Kospi 8.95%. Higher fuel costs could soon hit Spanish households.
→ Read the full digestSpanish banks are intensifying competition for high-net-worth individuals, with private banking assets reaching €1.025 trillion in 2025, up 17%. Margins for clients with over €30 million have shrunk from 0.80% to 0.30%. Santander, CaixaBank, and BBVA control 74.5% of the market.
→ Read the full digestA new EU tariff of at least €3 per item type now applies to parcels under €150 from non-EU countries. A package containing multiple item types incurs multiple charges. Economist Niño Becerra says the measure will mainly boost tax revenue and not significantly shift shoppers to local stores, as Chinese platform prices remain lower. The tariff took effect July 1 and affects over 90% of such shipments from China.
→ Read the full digestSpain consumed 14,300 terajoules for space cooling in 2024, second only to Italy in the EU, and has more than doubled its consumption since 2010. Air conditioning accounts for 2.5% of household energy, though that figure is far lower than in Malta or Cyprus. Higher summer usage pushes up electricity bills for residents.
→ Read the full digestAn EY report reveals that after five years of Next Generation EU funds, Spain's GDP per capita has risen by just 0.2%, while private investment remains 3.3% below 2019 levels. The government had projected that €140 billion in public funds would unlock €500 billion in private investment, but that multiplier has not materialized. The disappointing results raise questions about the effectiveness of the recovery plan for the country's long-term growth.
→ Read the full digestSeven NATO countries—Belgium, Croatia, France, Poland, Spain, Turkey, and the UK—will jointly own and operate a fleet of A400M aircraft, ensuring the program continues at Airbus's Seville plant. The factory had already dismantled two of its four assembly hangars, anticipating the project would end after 2028. The agreement, announced at the NATO Defense Industry Forum in Ankara, safeguards local jobs and a key aerospace hub.
→ Read the full digestRoom rental prices in Spanish cities continue to rise while the rest of Europe sees an average drop of 4.6%, according to HousingAnywhere. Barcelona leads with an average of €650 per month, up 8.3% from a year ago, followed by Madrid at €600 and Valencia at €425. Foreign students and young professionals face mounting costs for shared accommodation.
→ Read the full digestThe Romanian community in Spain has shrunk from 900,000 in 2012 to 609,000 in 2025, a decline of about one third. Similar exits are seen among Bulgarians, driven by stagnant salaries, expensive housing, and better purchasing power back home. The departure of active workers and professionals affects social networks and services for residents from other countries.
→ Read the full digestThe EU is imposing anti-dumping tariffs of up to 45.3% on Chinese tires after their market share in the bloc surged from 18% to 28%. The tariffs address unfair competition, as Chinese tires were up to 35% cheaper than European versions. Car maintenance costs in Spain will likely rise, affecting all drivers.
→ Read the full digestThe European Central Bank raised its key interest rate by 25 basis points to 2.25% in June, its first hike since 2023. The bank avoided forward guidance on future moves to prevent repeating mistakes from the 2011 crisis. It was the first G7 central bank to tighten after the Middle East crisis. The ECB highlighted persistent inflation uncertainty.
→ Read the full digestGasoline and diesel prices rose sharply in the week ending July 6, with gasoline up 5.56% to 1.517 euros per litre and diesel up 2.13% to 1.535 euros. The hike follows the restoration of VAT to 21% from 10%, though the government approved a 15-cent per litre discount for July. In August, the discount drops to 10 cents, and to 5 cents in September, through a reduced special tax on hydrocarbons.
→ Read the full digestThe Spanish household debt-to-GDP ratio fell to 42.5% in the first quarter of 2026, the lowest since late 1999 and down from a peak of 85% after the 2008 crisis. Household financial wealth reached a record 2.66 trillion euros, driven by rising equities and investment funds. Lower interest rates and mortgage competition are supporting home purchases.
→ Read the full digestPresident 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.
→ Read the full digestThe 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.
→ Read the full digestBlackRock 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.
→ Read the full digestEconomic 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.
→ Read the full digestThe 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.
→ Read the full digestThe Spanish government has approved raising regional spending caps from 3.5% to 4% and set a deficit limit of 0.1% of GDP for 2027-2029, opening the door for the first time to allowing some regions to run higher deficits than others. Only socialist-led regions such as Catalonia, Castilla-La Mancha, and Asturias supported the plan, while PP-governed regions voted against it, citing unfunded mandates. The central administration's deficit will drop from 1.8% to 1.5%. If implemented, differing regional budgets could lead to unequal public services and tax pressures depending on where you live.
→ Read the full digestSpain will roll out a new deposit return system (SDDR) for beverage containers starting in November 2026, meaning consumers will pay a deposit of around 10 cents per bottle or can. The fee is refunded when the container is returned, a system designed to boost recycling rates from the current 41.3% to the EU-mandated 70%. The measure applies to all purchases at bars, restaurants, and shops, adding a small but recurring cost to everyday spending for everyone in Spain.
→ Read the full digestBank of Spain data for the first quarter of 2026 show that the country's banks achieved historic highs in capital ratios and profitability, reaching 17.3%, while delinquency rates hit series lows. The 152 credit entities hold combined assets of €4.555 trillion. The strong indicators reinforce the stability of Spain's financial sector, offering reassurance to those with accounts, mortgages, or investments in the country.
→ Read the full digestOPEC+ ministers agreed to increase oil production by 188,000 barrels per day starting August 1, the fifth consecutive monthly rise. The move, backed by Saudi Arabia, Russia, and others, aims to stabilize global markets and could ease fuel prices in Spain, lowering transportation costs.
→ Read the full digestThe Fiscal and Financial Policy Council (CPFF) met Monday for the first time under new Minister Arcadi España to agree on deficit and debt limits for next year's budget. PP-led regional governments plan to raise the issue of the debated financing reform, but it is not on the official agenda. Approving the fiscal path is a prerequisite for the national budget, affecting public spending on services.
→ Read the full digestCarlos Cuerpo, Spain's Economy Minister, stressed that housing is the government's main focus but warned there is no single solution. He expects to approve a national budget in September after three years of extensions. Proposed measures include building more affordable rental homes and reforming the taxation of tourist flats.
→ Read the full digestThe Catalan government is considering tolls on key highways, including the AP-2 between Barcelona and Madrid, to cut congestion and accidents. Officials argue that charging only in Cataluña would be unfair, so the move may require national coordination. The plan could raise travel costs for frequent drivers and won't be implemented for several years.
→ Read the full digestThe Ibex 35 index ended the week at an all-time high of 19,845 points, rising 0.92% on the day. It gained 2.2% for the week and is up 14.7% so far this year. Steelmakers ArcelorMittal and Acerinox surged after the EU imposed a 50% tariff on imported steel. The rally benefits investors, including those holding Spanish equities.
→ Read the full digestThe government has quietly removed the fuel tax cuts it approved on March 20 as part of the Iran crisis response. The reversal comes despite oil prices sitting at similar pre-crisis levels, a move economists find puzzling. Pump prices are expected to rise again, hitting the budgets of all motorists in Spain.
→ Read the full digestThe number of Social Security contributors per pensioner reached 2.5, the highest ratio since 2011, driven by a wave of new affiliations from the migrant regularization. The record 128,533 new affiliates in June boosted the figure, but experts warn the improvement is only temporary and does not solve the system's long-term demographic challenges. The ratio's rise offers short-term relief but leaves structural questions unanswered.
→ Read the full digestThe European Commission approved a €5.7 billion disbursement to Spain from the recovery fund, along with an additional €302 million for two unmet milestones from the fifth payment. Spain has fulfilled 51 of 67 required objectives so far. The funds support public investments in areas like housing and health, benefiting public services across the country.
→ Read the full digestThe Ibex 35 climbed 1.37% to close at an all-time high of 19,671.8 points, briefly touching 19,800 during the session. Strong employment reports from Spain and the US — including 57,000 US jobs added in June — boosted investor confidence. The rally underscores growing economic optimism tied to Spain's job growth.
→ Read the full digestSpain's regulated gas tariff (TUR) for individual households rose by 21.5% in July compared to April, hitting consumers already facing higher living costs. The communal TUR for buildings also increased between 14.1% and 22.2%. The hike stems from rising hydrocarbon prices and the end of a temporary VAT cut introduced during the Iran conflict. The TUR applies to homes consuming up to 50,000 kWh per year, covering most residential users.
→ Read the full digestAs of July 1, all packages valued under €150 from non-EU online retailers now carry a €3 tariff, directly targeting Chinese platforms Temu and Shein. The EU receives 16 million packages daily from China, accounting for 97% of parcel imports. The new charge aims to level the playing field for EU retailers and address safety concerns. Shoppers in Spain will see higher costs on low-value goods.
→ Read the full digestSpain's CNMC has raided the offices of a mortgage intermediary association as part of an investigation into suspected price-fixing and anti-competitive coordination. The probe also examines whether member companies agreed not to poach staff. This follows sanctions proceedings against Bankinter, Santander, BBVA, Unicaja, CaixaBank, and Sabadell for coordinating on fixed-rate mortgage offers. If confirmed, the actions could lead to more competitive mortgage pricing.
→ Read the full digestIn 2024, 18,829 taxpayers declared annual income above €601,000, up 27.8% from the previous year and the highest figure on record. The Tax Agency reported that this group represents just 0.08% of all taxpayers. Since 2007, the number of people earning over €600,000 has grown by 78%. Most taxpayers fall in the €21,000 to €60,000 bracket, highlighting the growing concentration of wealth at the top.
→ Read the full digestSpanish energy companies have sold more than 12 GW of renewable energy assets worldwide—equivalent to 12 nuclear plants—over the past five years, generating over €15 billion. The sales are part of a strategy to reduce risk, control debt, and fund grid and electrification investments. The trend has accelerated recently due to falling profitability and negative wholesale electricity prices in Spain. The sell-off could influence future electricity costs and the pace of the green transition.
→ Read the full digestSpain could see a record 12 million extra European tourists this summer, potentially pushing total arrivals past 100 million. Security fears driven by US-Israeli strikes on Iran and the draw of an August solar eclipse are steering travelers to Spain instead of competing destinations, according to Oxford Economics. The influx will swell crowds and push up prices in popular areas, though it also means more short-term jobs in hospitality.
→ Read the full digestStarting July 1, all low-value packages under €150 entering the EU face a €3 customs processing fee per tariff category, ending the de facto exemption that favored platforms like Shein and Temu. The EU handles about 4.6 billion such shipments annually, 90% from China. Logistics firms warn the new rule could overwhelm customs and slow deliveries. Online shoppers in Spain will notice the extra cost and likely longer wait times.
→ Read the full digestDrivers filling up from July 1 will face higher fuel prices, petrol station owners have warned, despite government aid designed to cushion the impact of the Iran war. The exact price increase was not specified, but the trend adds pressure on transportation budgets. For residents who rely on cars, the rise means higher monthly expenses.
→ Read the full digestThe European Union hiked tariffs on imported steel to 50% and slashed duty-free quotas by 47% from July 1, 2026. The measures target overcapacity from China and India and respond to recent US tariffs. EU Trade Commissioner Maros Sefcovic described the plan as balanced. Steel-dependent sectors like construction may pass higher costs on to home buyers, though the full effect will take months to appear.
→ Read the full digestThe Euribor closed June at 2.80%, and while it has stabilized, holders of variable-rate mortgages still face annual repayment increases of up to €1,500 compared to last year. The European Central Bank's next meeting is on July 23, with rates expected to remain between 2.6% and 2.9% until then. Homeowners with variable loans will continue to feel the pinch throughout the summer.
→ Read the full digestEuropean Central Bank President Christine Lagarde indicated that future interest rate increases will be moderate, even as the conflict in Iran pushes up inflation. The ECB raised rates by 0.25 points in June, and May inflation stood at 3.2%. Lagarde said the European economy is more resilient than during the 2022-2023 Ukraine crisis, suggesting that borrowing costs may not surge dramatically.
→ Read the full digestThe US Supreme Court denied Spain's request for legal protection, finalizing a DC Circuit Court ruling that allows the enforcement of international arbitration awards against Spain. These awards stem from Madrid's retroactive cuts to renewable energy subsidies, which hit foreign investors. The decision opens the door for claimants to collect millions of euros.
→ Read the full digestYoung people in Spain are in a worse social and economic position than they were in 1995, according to a new synthetic indicator from Fundación PwC. The index, which tracks 39 variables covering demographics, employment, education, and housing, shows conditions have steadily deteriorated since the 2008 financial crisis and have never recovered to pre-crisis levels.
→ Read the full digestSpain is investing an additional €300 million to attract one of up to five European AI gigafactories, part of a €20 billion EU plan. Each centre would house up to 100,000 advanced chips and serve as an innovation hub for companies and researchers. The project aims to establish Spain as a key player in artificial intelligence.
→ Read the full digestSpain offers some of Europe's cheapest mortgages, but the competition regulator CNMC has opened an investigation into six Ibex-35 banks for possible anticompetitive practices linked to bundled products. Tied offers — such as requiring home insurance or pension plans — are among the strictest in the EU and can significantly increase the real cost of a home loan. Foreign buyers are advised to scrutinize these conditions when shopping for a mortgage.
→ Read the full digestAntón Costas, president of Spain's Economic and Social Council (CES), has cautioned that without good salaries, pressure on income redistribution will fracture the state. He described pension reforms based exclusively on demographic projections as a 'fatal error'. He also noted that the economy has shown resilience, although housing costs and the cost of living remain acute problems.
→ Read the full digestSpain’s CNMC competition authority and the Bank of Spain are investigating whether large banks engaged in commercial collusion or relaxed lending standards during their mortgage price war. Spanish mortgage rates are among the lowest in Europe, fueling concerns about risk-taking amid a housing access crisis. The scrutiny could lead to tighter credit conditions, affecting borrowers including foreign residents.
→ Read the full digestSticky inflation in the eurozone and US is delaying expected interest rate cuts. Eurozone headline inflation returned to 3.2% in June, with services inflation at 3.5%, while US core PCE rose to 4.1%. High housing costs and wage pressures are keeping services inflation elevated. For consumers, this means borrowing costs, including mortgages, are likely to stay higher for longer.
→ Read the full digestSpain’s Court of Auditors has found that the government granted two new loans of €10 billion each to Social Security in 2024 and 2025, violating the Toledo Pact agreement to halt such loans after 2023. The court notes the loans are unlikely to be repaid and recommends direct budget transfers instead. The recurring deficits raise concerns about the pension system’s long-term viability for future retirees.
→ Read the full digestVolkswagen has invested €10 billion in its Spanish factories to produce a new range of affordable electric cars, including models like the Cupra Raval and VW ID. Polo, which will cost under €20,000. The investment is creating jobs in Spain while the company plans to cut 100,000 positions and close four factories in Germany. The move strengthens Spain’s automotive industry and could make electric vehicles more accessible to buyers.
→ Read the full digestSpain's competition watchdog (CNMC) is investigating mortgage practices. The IMF and European Systemic Risk Board recommend that Spain restrict high-risk lending, and the Bank of Spain may impose credit restrictions. Banks defend the market as sound. Tighter rules could make home loans harder to obtain for foreign residents.
→ Read the full digestAverage household spending in Spain rose 3.1% to €35,101 in 2025. Housing costs, including utilities, jumped 5.8% to €11,665, absorbing a third of all budgets. Food spending increased 4.4% to €5,626, while transport rose 3.7% to €4,020. These three categories now make up 60% of spending, squeezing disposable income.
→ Read the full digestA Funcas survey reveals 68% of Spaniards believe paying pensions will become a major economic problem. Of those, 70% say young people will suffer the most. The fiscal authority AIReF has warned the latest reform may not guarantee sustainability. Germany is already linking retirement age to life expectancy and introducing mandatory private pensions.
→ Read the full digestINE confirmed GDP grew 0.6% in the first quarter of 2026, an annual rate of 2.7%, slightly above the previous quarter. Household consumption rose 0.6%, though exports dipped 0.6% and imports fell 1%. The government will approve new budget forecasts and war-related measures on June 29. The resilience supports job stability and public services.
→ Read the full digestBrent crude has fallen to around $72, back to levels before the US-Israel offensive on Iran. Gasoline averages €1.46 per litre, down 2.6% in a week, while diesel is at €1.538. Overall fuel prices have dropped about 9% recently. Lower pump prices ease commuting and travel costs for drivers.
→ Read the full digestA survey by the General Council of Economists reveals that 64% of members believe stagflation—low growth with inflation above 2%—is highly or very likely in 2026. Factors include ECB rate hikes, persistent inflation, and energy shocks from the Iran conflict and the closure of the Strait of Hormuz. Additionally, 63.9% are deeply concerned about trade barriers under the Trump presidency. The outlook signals potential erosion of real wages and savings for all residents.
→ Read the full digestThe European Parliament’s Economic and Monetary Affairs Committee approved the legislative package for a digital euro, which will include online and offline versions. The plan aims to reduce EU dependence on US payment giants like Visa and Mastercard. Spanish MEP Fernando Navarrete (PP) served as rapporteur. The initiative also guarantees continued access to cash. A digital euro could eventually reshape how all residents pay and store money.
→ Read the full digestThe Spanish government added €300 million to its bid for a European AI gigafactory, bringing the total investment to €1.019 billion. The EU will allocate €20 billion for three to five such facilities across member states. Spanish sites include Móra la Nova in Tarragona and San Fernando de Henares in Madrid. While the project could eventually create tech jobs, its immediate impact on most residents is limited.
→ Read the full digestThe average deposit rate in Spain stands at 1.77%, while the average mortgage rate is 2.8% — a gap of nearly 60%. Spanish mortgage rates remain among the lowest in the eurozone, where the average is 3.43%. This means savings accounts yield little while mortgage costs are higher, creating a drag on household finances.
→ Read the full digestGross foreign investment reached €6.656 billion in the first quarter, but disinvestment surged 85% to €3.839 billion, dragging net investment down 16.83% year-on-year. US net investment plunged 719% amid political tensions between the Trump and Sánchez administrations. The decline could cool the Spanish economy and affect job prospects, especially for international workers.
→ Read the full digestGas futures currently trade at around €42 per MWh, down from a peak of €62 in March but still far above the €30 level seen before the Iran conflict. Enagás CEO said normalization is unlikely before late 2027 or early 2028. The conflict has cost Spain an extra €1 billion on gas bills and Europe €8.5 billion, keeping energy costs high for consumers and businesses.
→ Read the full digestPrivate nursery costs in large Spanish cities exceed €700 per month, often taking more than 30% of household income. A single mother in Madrid reported spending €550 for a base spot plus €100 for extended hours, and €800–900 for summer camps. Public nursery places are scarce: Madrid had 4,131 spots last year but 7,200 families were left out. The high cost discourages families from having a second child.
→ Read the full digestSpain's Ecological Transition Ministry proposes a new electricity bill that will display the average consumption of similar supplies in the same postal code. It will also include self-consumption data, contract type, and the product name. The measure was first proposed in 2022 but was not implemented until now. The change aims to help consumers better understand and compare their energy use.
→ Read the full digestDiesel prices in Aragón have fallen from €1.684 to €1.529 per liter over the past month, but the government's tax rebate on hydrocarbons expires on June 30. Station owners warn that without an extension, prices could rise again. They have called on the government to maintain the rebate to keep fuel affordable.
→ Read the full digestThe European Parliament approved two regulations implementing the EU-US trade agreement from August 2025. The deal eliminates tariffs on all US industrial goods and reduces automotive tariffs from 25% to 15%. It also provides preferential access for some US farm products. The agreement may lower car prices in Spain, a major automotive manufacturing hub.
→ Read the full digestOxford Economics estimates Spain could receive up to 109 million international tourists in 2026, up from 96.8 million in 2025, driven by demand diverted from the Middle East. Overnight stays grew 10.1% in 2023, and the boom is expected to boost retail and hotel sectors. Average annual retail real estate returns are forecast at 7.9% between 2026 and 2030.
→ Read the full digestThe committee announced by Pedro Sánchez in January 2025 to speed up strategic investments has not held a single operational meeting, despite claims last January that its first meeting had taken place. The delay highlights government inefficiency and could affect Spain's business climate for foreign investors.
→ Read the full digestNearly 30 new Chinese car brands have entered the Spanish market, capturing close to 10% of European sales and surpassing traditional manufacturers like Ford and Nissan. BYD ranked as the world's eighth-largest car group in 2025, and Geely ninth. Consumers now have a wider choice of vehicles, especially in electric models.
→ Read the full digestA Bank of Spain report found that immigration accounted for half of Spain's GDP growth from 2022 to 2025, contributing 1.7 percentage points of growth. Immigrants also filled two-thirds of new jobs created during that period, without harming native employment. The report underscores the critical economic contribution of immigrants to Spain's recovery.
→ Read the full digestBank of Spain governor José Luis Escrivá urged banks to maintain prudent lending standards for mortgages and other credit, despite the financial system's strong health. He stressed the need for 'vigilance' and noted the current situation is not like the 2008 crisis. Mortgage seekers in Spain should expect continued cautious lending criteria.
→ Read the full digestThe Spanish government has not modified the gender gap pension supplement, even after the EU deemed it discriminatory. The number of men receiving the supplement has tripled. The lack of reform affects pension planning for residents in Spain.
→ Read the full digestFarmers in Valencia are destroying their onion harvests because the price gap between producers and consumers has reached 522%. Growers receive €0.36 per kilo while shoppers pay €2.24. The average multiplier across all food products is 3.68. These gaps drive up the cost of living for all residents in Spain.
→ Read the full digestThe Bank of Spain has raised its 2026 inflation forecast to 3.6%, the highest since 2022, due to the energy crisis caused by the Iran war. Growth forecasts remain unchanged at 2.3% for 2026 and 1.7% for 2027. The ECB also projects eurozone inflation at 3.5%. The central bank warns of a partial pass-through of energy price shocks to other goods, raising living costs for all residents.
→ Read the full digestThe 12-month Euribor has risen above 2.8% in June, with a daily rate of 2.929%. This could increase variable mortgage payments by up to €133 per month. Economist Gonzalo Bernardos recommends switching to fixed-rate or capped mortgages to secure lower payments.
→ Read the full digestEurozone annual inflation accelerated to 3.2% in May, up from 3.0% in April, driven by a 10.8% rise in energy prices. Core inflation, excluding energy and food, stood at 2.6%. The increase raises living costs for households across the eurozone.
→ Read the full digestKevin Warsh, the new Federal Reserve chair, kept U.S. interest rates unchanged at 3.5% to 3.75% in his first meeting, citing rising inflation. The decision was unanimous. Oil prices fell after an initial agreement between the US and Iran.
→ Read the full digestChinese automaker Changan has established its European headquarters in Alcobendas, Madrid. The company aims to sell 300,000 vehicles in Europe within three years and is evaluating the construction of a manufacturing plant in Aragon.
→ Read the full digestThe European Central Bank raised interest rates for the first time in three years, increasing Euribor and mortgage costs. Real estate expert Sergio Gutiérrez warns that renters will also feel the impact as rising mortgage costs push more people toward renting, boosting demand and prices.
→ Read the full digestSpain's competition authority CNMC has opened sanction proceedings against Bankinter, Santander, BBVA, Unicaja, CaixaBank and Sabadell for possible anticompetitive practices in fixed mortgage rates. The investigation targets public statements by executives that may have allowed rivals to anticipate future pricing. The inquiry could last up to 24 months.
→ Read the full digestCatalonia's parliament will allow Barcelona to raise the municipal cruise passenger surcharge from 8 to 24 euros. Combined with the regional tourist tax of 6 euros, the total per passenger will be 30 euros. The move follows a record 3.99 million cruise passengers in 2025.
→ Read the full digestRenewable energy sources saved Spanish households an average of €10 per month on electricity bills during the recent energy crisis. Gas sets the wholesale electricity price only 9% of the time, significantly reducing the impact of the 75% spike in gas prices during the Hormuz conflict. Although gas prices have dropped 10% following the peace deal, they remain 46% above pre-war levels, making the renewable buffer crucial for household budgets.
→ Read the full digestThe cost of domestic flights in Spain jumped 25.6% in May, marking the largest monthly increase on record. International airfares also rose 2.5%, pushing the overall average ticket price up 8.9%. The surge stems from a 6.44% increase in Aena airport fees and elevated operational costs driven by higher oil prices during the recent geopolitical conflict.
→ Read the full digestSpain's aging population creates significant risks for businesses, with over 40% of critical positions currently filled by older workers. More than half of the workforce is now over 45, and the average age exceeds 45. Over the next decade, 5.2 million workers will retire while only 1.8 million new employees enter the labor market. This shrinking workforce ratio of one new hire for every three retirees pressures pension sustainability and social security contributions.
→ Read the full digestIberdrola, Endesa, and Naturgy are reducing investments in renewable energy due to falling wholesale electricity prices and over 500 hours of negative pricing this year. The companies are shifting their focus toward regulated network assets that offer more predictable returns. Iberdrola now plans to allocate 65% of its €58 billion investment budget for 2026-2028 to networks, up from 60%. These grid networks are expected to contribute 55% of gross operating profit by 2028.
→ Read the full digestThe European Central Bank raised interest rates by 0.25 points to 2.25%—the first hike in three years—to combat inflation fueled by the conflict in Iran. New projections show inflation back to 3% by year-end and oil prices at $97 per barrel, worsening the cost-of-living crisis and lowering growth outlook for the eurozone.
→ Read the full digestThe average diesel price in Spain dropped 2% this week to €1.615 per litre, the lowest since early March when the Iran conflict began. Gasoline also fell 1.74% to €1.52. The decrease follows earlier spikes and is aided by government tax measures.
→ Read the full digestMajor Spanish banks are launching new digital products targeting young clients to compete with neobanks like Revolut and N26, which already have about 12 million customers in Spain. Executives acknowledge they must prove they offer similar tools, including ETFs and seamless digital experiences.
→ Read the full digestIran's Revolutionary Guard launched drone strikes on US bases in Bahrain after US attacks, escalating Middle East conflict. BBVA Research now forecasts Spain's inflation to hit 3.8% in 2026 due to the war's 'intense and persistent' impact. The ECB is expected to raise interest rates for the first time in three years, with the euribor already at 2.8%, making mortgages more expensive.
→ Read the full digestSwedish company Stegra selected Portugal for a €1 billion green hydrogen plant, creating 500 jobs, because Red Eléctrica could not guarantee grid connection in Spain. This underscores the saturation of Spain's electricity network, which is losing major industrial investments.
→ Read the full digestThe ECB is expected to raise its benchmark rate to 2.25% this week, the first hike since 2023. Pimco and Vanguard predict two more increases by year-end and another in early 2027, as inflation reached 3.2% in May.
→ Read the full digestFund Blasket, to which Spain owes €77 million from a renewable energy subsidy cut, has registered a US court ruling to seize payments to Spain's football federation and sponsors including Adidas, escalating pressure just days before the 2026 World Cup.
→ Read the full digestThe European Central Bank is expected to hike rates by 25 basis points to 2.25% on June 11, its first rise since the Iran war, as eurozone inflation reaches 3.2%. The move will increase borrowing costs for mortgages and loans despite weak economic growth.
→ Read the full digestAccording to CaixaBank Research, real consumption per person has stagnated since the pandemic, growing only 0.8% per year on average from 2019-2025 versus 2.3% from 2013-2019. This indicates that well-being has stopped improving despite stronger GDP growth.
→ Read the full digestDespite the closure of the Strait of Hormuz due to the U.S./Israel war with Iran hindering exports, seven OPEC+ members agreed to raise output in July. The increase is part of a plan to gradually reverse voluntary cuts made in 2023.
→ Read the full digestEurostat revised down its estimate to a 0.2% contraction, the first since Q4 2022, as the Middle East war weighed on the economy. Spain continued to grow, while Ireland plunged 12.1%.
→ Read the full digestAEB chief Alejandra Kindelán called the former Bank of Spain governor a 'first-rate candidate' to replace Christine Lagarde. An OMFIF poll gives him a slight edge over other candidates like Bundesbank's Nagel.
→ Read the full digestThe European Commission has sent a new letter to Spain's government, considering its actions to obstruct BBVA's hostile takeover of Sabadell incompatible with EU banking merger rules. The Commission argues that only the ECB and CNMC should have ruled, not the Council of Ministers which imposed extra conditions. The operation failed as only 25% of Sabadell shareholders backed it.
→ Read the full digestWhile European airports saw a 0.7% drop in passenger traffic in April 2025—the first decline since the post-Covid recovery—Spain was spared from the downturn caused by the war in Iran. Spanish airports maintained their traffic levels, though the continental data marks a historic slowdown.
→ Read the full digestSpain's government has used a record €32.2 billion in budget modifications (modificaciones de crédito) in the first four months of 2026, a 64% increase from last year, as it continues to operate with the 2023 budget. This is more than triple the modifications made during normal times and reflects reliance on legal loopholes to pass spending without congressional approval.
→ Read the full digestThe US Trade Representative has proposed imposing tariffs of 10% or 12.5% on 60 economies, including the European Union, for failing to effectively ban imports made with forced labor. The move could affect Spanish exports and global trade.
→ Read the full digestThe OECD projects Spain's GDP will grow 2.2% in 2026, outpacing the US, UK, and major European economies. However, it advises the government to reduce the deficit more quickly and limit spending on Iran-related relief measures.
→ Read the full digestEurozone inflation hit 3.2% in May, the highest since September 2023, as energy prices surged 10.9% due to the Middle East conflict. The ECB meets June 11 to decide on rates, with growing pressure for a hike to combat persistent price rises.
→ Read the full digestFamilies face a double blow: electricity prices jumped 27.8% in May and the IVA (VAT) reduction expired, restoring the 21% rate. Vice President Yolanda Díaz has demanded an urgent decree to restore tax cuts on energy and freeze rents, but the government previously lacked parliamentary support for similar measures. The government began withdrawing relief after April IPC (CPI) hit 3.2%.
→ Read the full digestBrent crude surged over 4.5% to nearly $95 per barrel after Iran halted talks with the US following Israeli attacks on Lebanon. Although Trump announced a ceasefire in Lebanon, volatility remains high and risks of disruption to energy shipments through the Strait of Hormuz persist.
→ Read the full digestSAIC (MG) has chosen Spain for its first European car factory, joining Chery, Leapmotor, and CATL in a wave of Chinese EV and battery investment. However, the government has almost lost the bid for a third BYD plant in Europe.
→ Read the full digestCroat economist Boris Vujcic took office as ECB Vice President for an eight-year non-renewable term, replacing Spain's Luis de Guindos. His appointment comes amid debate over raising interest rates from 2% to combat inflation from the Iran war.
→ Read the full digestStarting June 1, the government has withdrawn the reduced IVA (VAT) of 10% on electricity and gas, restoring the general 21% rate as part of a phased end to the anti-crisis plan. Fuel subsidies remain due to high inflation, but uncertainty persists over which measures will stay beyond June 30, affecting household budgets.
→ Read the full digestIn response to Chinese competition, European automakers will launch a dozen electric urban models at or below €25,000 in coming months, with several produced in factories near Barcelona and Pamplona. The 'Made in Europe' offensive includes Cupra, Volkswagen, and Skoda models, aiming to democratize electric mobility.
→ Read the full digestSpain has culled 2.7 million laying hens (5.6% of the flock) due to avian flu since autumn, leading to a drop of 32.5 million dozen eggs in production. The supply shortage is contributing to rising egg prices at supermarkets.
→ Read the full digestThe ongoing conflict in Iran and threats to the Strait of Hormuz have sent oil prices on a volatile rollercoaster. Each shift in diplomatic messaging from Trump triggers price spikes or drops, impacting global costs of living.
→ Read the full digestThe Euribor closed May at a provisional 2.80%, the highest since September 2024. For a typical €350,000, 30-year variable mortgage, the annual review pushes the monthly payment up €133, from €1,416 to €1,549.50.
→ Read the full digestLow emission zones (ZBE) have expanded restrictions, now banning cars with the yellow B environmental label (gasoline from 2001, diesel from 2006) and all diesel vehicles over 10 years old. The measure affects more than 15 million vehicles across many urban areas.
→ Read the full digestSpain's CPI held at 3.2% in May, but core inflation rose to 2.9%. The temporary VAT (IVA) reductions on electricity and natural gas end on Monday, June 1, raising household bills, while the government debates whether to extend other fiscal measures beyond June 30.
→ Read the full digestThe European Commission has authorized a €9 billion aid package to create a capacity market for electricity supply flexibility. The system rewards power plants and storage for supplying energy on demand and large industrial users for reducing consumption at peak times, developed after the April 2025 blackout.
→ Read the full digestThe 12-month euríbor has risen for the third consecutive month to 2.8% in May, the highest since September 2024. This will increase annual mortgage payments by over €670 for those with variable-rate loans. The surge is driven by fears of energy crisis and potential ECB rate hikes.
→ Read the full digestIn 2024, the average salary for men increased 5.5% to €32,058, while women's pay rose only 5.1% to €26,905, widening the gap to 16%. This is the first increase since 2013, according to INE.
→ Read the full digestThe US Department of Justice has urged the Supreme Court to reject Spain's appeal against arbitration awards for retroactive cuts to renewable energy subsidies. Spain faces payment of millions to investors, with the government arguing the decisions violate sovereignty.
→ Read the full digestThe average price of diesel rose 0.04% to €1.685 per liter, while gasoline increased 1.35% to €1.568, marking its fourth consecutive rise. Despite the uptick, diesel remains well below the €1.883 peak before tax measures took effect in March.
→ Read the full digestThe European Central Bank's Financial Stability Report identifies the Iran conflict and energy supply crisis as the main threats to euro zone stability, warning of higher inflation and weaker growth. ECB Vice President Luis de Guindos cautioned the shock could increase market volatility and strain debt repayments. The European Commission recently cut its euro area growth forecast to 0.9% for 2026.
→ Read the full digestSpain's Economic and Social Council (CES) annual report highlights that the economy created 45% of all EU jobs in 2025, calling it a stress test passed with flying colours. However, it warns that citizens remain pessimistic due to high housing costs and the cost of living, and that job growth hasn't sufficiently reduced poverty and inequality.
→ Read the full digestThe government's tax shield on energy ends as inflation moderates: IVA (VAT) on electricity and gas returns to 21% from 10%, and the Special Electricity Tax rises from 0.5% to 5.11%. For an average monthly bill of €60, this means an automatic increase of €7-8. The energy itself isn't more expensive – the discount is simply being removed.
→ Read the full digestIsabel Schnabel, German member of the ECB's executive board, said a rate hike is needed at the June 11 meeting as inflation has reached 3% and is expected to hit 4% by year-end. She warned that ignoring the persistent price pressures is no longer an option, even if a hike could worsen the economic impact.
→ Read the full digestBrent crude fell nearly 6% to $97 amid signs of a US-Iran peace deal, easing fuel prices. Meanwhile, the Spanish government weighs extending its anti-war economic shield, as the conflict drives inflation to 3.1% and is projected to increase annual pension spending by €6.2 billion, pushing the average retirement pension to €1,630.
→ Read the full digestThe Social Climate Plan, now in public consultation, allocates €4.7 billion to help vulnerable households with energy-efficient housing rehabilitation and €4.3 billion to decarbonize mobility. The aim is to reduce energy bills and emissions.
→ Read the full digestSix years of uncontrolled solar panel expansion have destabilized Spain's electricity grid, forcing operator Red Eléctrica to request an emergency €600 million investment to compensate for severe oscillations, especially in Andalusia, Extremadura, and Castilla-La Mancha.
→ Read the full digestWith Luis de Guindos leaving as Vice President, Croatia's Boris Vujčić takes over, leaving Spain without a seat until at least 2027. The Spanish government failed to secure a replacement from its own nationality.
→ Read the full digestThe planned deposit, return, and refund (SDDR) system for plastic bottles and cans will likely be postponed until January 2029 due to incompatibility with EU regulations. The government has issued a clarifying note but no official confirmation.
→ Read the full digestExporters of products like olive oil, wine, and chocolate are grappling with US tariffs under President Trump, a weak dollar, and rising costs from the Iran conflict. Experts recommend diversifying markets and managing margins.
→ Read the full digestIn its worst-case scenario for the Iran conflict, the IMF projects Spain's inflation could reach nearly 5% and growth could slow sharply over 2026–2027, assuming oil stays above $110/barrel and gas triples in price. The fund urges Spain to remove energy VAT cuts and prepare for rising pension spending due to an aging population.
→ Read the full digestTwo Republican US senators, Sheehy and Moreno, have asked regulators to block Santander's takeover of Webster Bank, claiming Spain is 'not a reliable ally' and citing Santander's alleged Iran sanctions risks. The move reflects deteriorating US-Spain relations over the Iran conflict.
→ Read the full digestThe European Commission raised Spain's GDP growth projection to 2.4% for 2026, a tenth higher than its autumn forecast, making it the only member state to receive an upgrade despite the energy crisis from the Iran conflict. Unemployment is expected to fall below 10% this year for the first time since 2008.
→ Read the full digestAs the conflict in Iran approaches three months with the Strait of Hormuz still blocked, oil prices remain above $100 per barrel. The International Energy Agency warns that commercial reserves will be exhausted in weeks, raising stagflation fears for Europe.
→ Read the full digestEurostat confirmed eurozone inflation accelerated to 3% in April, the highest since 2023, driven by energy costs (up 10.8%) due to the Iran conflict. Spain's harmonised inflation rose to 3.5%, above Germany (2.9%), Italy (2.8%), and France (2.5%).
→ Read the full digestThe congressional committee reviewing the 'pasarela' (pathway) for mutualists (professionals like lawyers, architects who were outside the Social Security system) postponed the session by a week. Sumar pushed for the quickest possible date, but the debate now awaits government economic reports.
→ Read the full digestSedigas (Spanish Gas Association) urges the Ecological Transition Ministry to revise upward the TUR (regulated gas tariff), arguing it uses outdated benchmarks and doesn't cover supply costs. The current TUR is €21/Mwh vs. roughly €50/Mwh on the free market, which the sector says 'destroys the market'.
→ Read the full digestThe EU finalized a trade agreement with the US early Wednesday, extending protection until 2029 with new safeguards, after Trump threatened 25% tariffs on European cars. Meanwhile, the impact of previous tariff uncertainty is already visible: Spanish food and drink exports to the US fell 9.6% to 3,041.7 million euros, even as overall food exports hit a record 52,565 million.
→ Read the full digestNine out of ten construction firms surveyed say the Middle East war has significantly impacted their business, with fuel prices rising over 20% for 60% of companies and energy costs up to 20%. The sector warns viability is at risk if the situation persists.
→ Read the full digestThe IEA warns that global commercial oil stocks will run out within weeks due to the ongoing closure of the Strait of Hormuz, which has blocked 14 million barrels per day. Meanwhile, the EU has admitted its own influence is insufficient and has called on China to mediate between the US and Iran, as the IMF rates the situation as highly critical.
→ Read the full digestExports of Spanish food and beverages to the US fell 9.6% to €3.04 billion in 2025, impacted by Trump's tariff policies. Despite this, the overall sector posted record exports of €52.565 billion, up 2.9%, with growth elsewhere partly offsetting the US decline.
→ Read the full digestAn investigation by EL MUNDO reveals that at least €1.4 billion in Next Generation EU funds were renounced by public entities and companies, representing 3.5% of executed funds. Most ministries refuse to disclose details, raising transparency concerns.
→ Read the full digestThe government will continue aid for fuel, agriculture, and transport due to the Iran war, but will let the electricity and gas IVA (VAT) reduction expire on June 1 as prices normalize. The PP calls to maintain the electricity VAT cut.
→ Read the full digestThe ECB left rates at 2% and other central banks are on hold, wary of stagflation stemming from the Iran conflict and Hormuz Strait disruption. They avoid aggressive moves, recalling 1970s caution.
→ Read the full digestJerome Powell leaves his second term as Fed chair on May 15, though he stays on the board. His tenure was marked by conflict with President Trump over central bank independence.
→ Read the full digestRepsol CEO Josu Jon Imaz warned of 'periods of supply complexity' for petroleum products in Europe in the coming weeks and months, due to the shutdown of the Strait of Hormuz, which has cut 11–12 million barrels per day (about 11% of global supply). He emphasized that Spain is relatively well-prepared due to its refineries and Repsol's €1.5 billion investment to secure kerosene supplies since March 1.
→ Read the full digestThe supermarket chain has reduced prices on staples like bread, dairy, and meat, claiming customers could save up to €2,000 per year on their weekly shopping. Aldi says its fresh products are already 15% cheaper than the market average.
→ Read the full digestSpain's *Tesoro Público* auctioned €2.5 billion in 3-month and 9-month *letras* (T-bills) on Tuesday, pushing yields to their highest levels in over a year. The 3-month yield rose to 2.163% and the 9-month yield hit 2.521%, attracting strong demand from investors.
→ Read the full digestThe CEO of Saudi Aramco warned that oil market disruption from the Hormuz blockade could delay normalization until 2027, as the company's profits jumped 25% to $32 billion. Spain's pensions are expected to rise over 3% due to inflation, adding some €2,000 million in spending, while the government has parked a proposed windfall tax on electricity companies but may raise taxes on gas and fuels.
→ Read the full digestSpain now leads the European Union with 29.9% of people in households with dependent children at risk of poverty or social exclusion (AROPE indicator), overtaking Romania and Bulgaria. The Eurostat figure combines income poverty, severe material deprivation, and low work intensity, affecting one in every three such households in Spain.
→ Read the full digestBrussels is pushing Spain to reform its regulated electricity tariff (PVPC), while the CNMC (National Markets and Competition Commission) studies two charge modifications that could increase costs: allowing multiple contracted power levels within a day and distributing system operation costs more evenly among all consumers.
→ Read the full digestRenfe estimates it would lose €60 million annually if forced by the CNMC to hand over its heavy maintenance workshops to private operator Iryo, and that key routes like Madrid–Barcelona face reduced service. The company warns that both commercial trains and public service obligations (e.g., Atlantic Axis, Avant to Valladolid) could be affected.
→ Read the full digestDespite diplomatic progress, Brent crude remains at $100 a barrel, up 80% this year. The IEA forecasts demand at 102.1 million b/d, and supply shortages persist. Some analysts warn stress scenarios could push oil above $200.
→ Read the full digestThe European Commission has adopted exceptional guidelines to temporarily relax aviation regulations to prevent flight cancellations and route closures due to potential kerosene shortages from the Middle East crisis. The guidelines clarify passenger compensation rights and prohibit airlines from raising prices on tickets already sold due to higher fuel costs. The double blockade of the Strait of Hormuz affects 40% of global kerosene, and the IEA warned the EU could face supply issues by late May if conflict continues.
→ Read the full digestSince the start of the conflict in Iran, Spanish petrol stations have seen daily revenues jump from €52.2 million in February to €68 million in March. If April holds similar levels, the sector will have earned over €800 million in additional income from the war.
→ Read the full digestThe European Commission has adopted exceptional guidelines to relax refueling obligations and slot rules due to kerosene shortages from the Ormuz Strait blockade. Meanwhile, IAG (Iberia, British Airways) reported a 71% profit increase to €301 million in Q1 but warned that higher fuel costs will lower yearly earnings.
→ Read the full digestStellantis will produce a new Opel electric C-SUV at its Figueruelas plant from 2028 and is planning to hand over its Villaverde factory in Madrid to Chinese brand Leapmotor. This is part of an expansion of electric vehicle production in Spain.
→ Read the full digestRenfe has challenged the CNMC (National Markets and Competition Commission) requirement to let Ouigo and Iryo use its heavy maintenance workshops. Renfe claims this threatens public service, while the regulator insists on non-discriminatory access.
→ Read the full digest