Montoro Investigation: An investigation is ongoing into former Minister of Finance, Cristóbal Montoro, and his firm Equipo Económico, which is accused of a "pay-to-play" scheme to influence legislation for clients. An email from December 2013, discussing "paying this economic team that has direct contact with the Minister of Finance, Cristóbal Montoro" to influence the Congress of Deputies for tax benefits, is the origin of the probe. The judge suggests this practice "could have been habitual and known". Equipo Económico allegedly had a "great capacity" to connect companies with the Ministry of Finance and influence the drafting of laws, even leading to a patronal group (AFGIM) drafting reform proposals that were adopted, specifically for reducing the electricity tax and the Economic Activities Tax.

Spain Wildfires: Spain is currently battling two significant wildfires declared at level two severity (IGR 2) as of July 18, 2025

Spain's Mortgage Surge: The signing of mortgages on homes in Spain surged by 54.4% in May 2025 compared to the previous year, marking the eleventh consecutive month of annual increases and the best May since 2022. This significant increase is primarily driven by falling interest rates, which have remained below 3% for four consecutive months

I. Widespread Power Outage and Investigation

A. Incident Description:

• On Monday, a significant power outage affected nearly the entire Spanish territory, with the exceptions of the Canary Islands, the Balearic Islands, Ceuta, and Melilla.
• The outage occurred around 12:30 PM peninsular time.
• The President of the Government, Pedro Sánchez, stated that the incident involved a "sudden loss" of 15 gigawatts of energy production within five seconds, representing 60% of the electricity being consumed at that moment. This was described as "something that had never happened before."
• Red Eléctrica Española (REE), the private operator managing the grid, reported two consecutive incidents of generation loss immediately preceding the outage.
• The first incident, in the southwest of the peninsula, was initially overcome.
• A second, compatible with a loss of generation, occurred just 1.5 seconds later, leading to oscillations and the final blackout 3.5 seconds after that.
• REE indicated that "it is very possible that the affected generation could be solar," though this is not a definitive conclusion.
• The electrical system has since been normalized, with REE successfully recovering the grid using hydroelectric and combined cycle gas generation.

B. Investigation into Sabotage:

• The Audiencia Nacional (National Court) has opened preliminary proceedings to investigate whether the blackout was an act of computer sabotage on critical Spanish infrastructure and if it could constitute a crime of terrorism.
• Judge José Luis Calama has requested reports within ten days from the Centro Criptológico Nacional (National Cryptologic Center) and Red Eléctrica Corporación SA to determine the cause(s) of the blackout.
• The Judge also requested a preliminary report from the Police Information Headquarters within ten days.
• The magistrate noted that while the cause is currently unknown, "cyberterrorism is among one of the possible" options, necessitating a judicial investigation.
• The incident is considered serious as it affected computer systems supporting "essential services to society such as health, energy, industry or transport," creating a "critical situation for the well-being and sense of security of all citizens."
• The investigation cites Article 573 of the Penal Code, which states that computer crimes can be classified as terrorism if their purpose is to severely destabilize the constitutional order or the functioning of essential services.

C. Conflicting Statements and Government Response:

• Red Eléctrica Española (REE): Eduardo Prieto, director of Operation Services at REE, has "ruled out that the cause of the blackout was a cyberattack," stating that "effectively there has been no type of intrusion in the control systems that could have caused the incident."
• President Pedro Sánchez: While acknowledging the Audiencia Nacional's investigation is within the "logical order of a democratic state's society," Sánchez stated that the government does not have "conclusive" information that the incident was a terrorist attack. He also said it would be "imprudent" to rule out any hypothesis, but equally "imprudent" to point to one or another hypothesis.
• The government is committed to investigating the cause of the failure and has indicated that "responsibilities will be demanded from private operators."

D. Impact on Essential Services:

• The blackout impacted essential services, including transportation, education, and potentially healthcare.
• Transportation: Thousands of train passengers were stranded, and some train lines remained interrupted even after the power was restored. Metro services in major cities like Madrid and Barcelona have recovered, and airports are functioning normally.

1. Government Coalition Dynamics and Policy Disagreements

• Yolanda Díaz, the second Vice-President and leader of Sumar, has attempted to ease tensions with the PSOE regarding the recently announced increase in defense spending.
• Despite past criticisms, Díaz insists the coalition "enjoys good health" and will "exhaust the legislature."
• The source quotes Díaz saying, “Es verdad que tenemos posiciones diferentes, en esta materia de manera singular,” ("It is true that we have different positions, particularly on this matter.") acknowledging the disagreements.
• Pedro Sánchez, the Prime Minister, announced that Spain would reach 2% of GDP in defense spending this year, an investment of €10,471 million.

• A separate, but related, point highlights a new tender from the Ministry of Interior for the purchase of Israeli bullets, six months after announcing the cancellation of such a contract due to the conflict in Gaza. Díaz demanded an "immediate rectification" and a parliamentary appearance from the minister, calling it a "vulneración flagrante de los acuerdos" ("flagrant violation of the agreements") within the government, especially during the "genocidio en directo del pueblo palestino" ("live genocide of the Palestinian people").
• In a separate matter, Díaz considers it "normal" that Pedro Sánchez will not attend the funeral of Pope Francis, explaining that the head of state (the King) attends accompanied by part of the government.

2. Economic Trends in Spain (Source 2):

• The number of new housing mortgages constituted in Spain in February reached 39,084, a 4.3% increase compared to February 2024.
• This marks the eighth consecutive month of growth in mortgage signings.
• The February 2025 figure (39,084) is the highest recorded for the month of February since 2011.
• The average mortgage amount was €157,018, a significant 16.2% year-on-year increase. The total capital lent rose by 21.2%.
• The average interest rate for new mortgages was 2.96%, with an average term of 25 years.

• The Euribor continued its downward trend, closing March at 2.398%.
• Cantabria (+55.6%), La Rioja (+53.3%), and the Basque Country (+39.7%) saw the largest increases in mortgage signings, while the Canary Islands (-38.7%), Navarre (-34.3%), and the Balearic Islands and Madrid (-20% in both) saw decreases.

3. The Papal Succession and Future Direction of the Catholic Church (Source 3):

• The upcoming conclave will involve 133 cardinals from 71 countries, making it the largest and most diverse group in history.
• A central question is whether the next Pope will be part of the reformist wing, aligning with Francis, or the conservative wing.
• Historian Juan María Laboa describes the conclave as "the most bewildering in history" due to the large number of cardinals with little connection to Europe and who are largely unknown to each other.

4. Legal Challenges and Political Accusations

• The Supreme Court is holding a preliminary hearing regarding a lawsuit filed by Alberto González Amador, the partner of Madrid regional president Isabel Díaz Ayuso, against the First Vice-President and Minister of Finance, María Jesús Montero.
• González Amador is seeking €40,000 in compensation for alleged illegitimate interference with his right to honor due to Montero's public statements.
• Neither González Amador nor Montero were required to attend the hearing; only their lawyers were present. Montero is represented by the State Legal Service (Abogacía del Estado).
• This hearing follows a failed conciliation attempt in October where Montero and her representatives did not attend.
• The lawsuit stems from statements Montero made during a parliamentary session in March 2024, accusing Ayuso of living "in a flat that was paid for with fraud against the Public Treasury" and "with commissions related to masks in the worst situation of the pandemic."

Spanish government's recent agreement with Junts per Catalunya regarding the distribution of unaccompanied migrant minors, the broader political reactions to this agreement, trends in international passenger arrivals, and internal political dynamics related to budget negotiations and freedom of speech.

I. Government Agreement with Junts on Migrant Minors and Subsequent Political Reactions:

• Central Agreement: The PSOE (Socialist Party) government has reached an agreement with Junts per Catalunya, a Catalan separatist party, to reform Article 35 of the immigration law. In exchange for Junts' support, Catalonia will receive between 20 and 30 unaccompanied migrant minors out of the 4,000 currently in the Canary Islands.

• PP's Disapproval and Regional Opposition: The Partido Popular (PP), the main opposition party, has expressed strong disagreement with this agreement. They argue that their regional governments will refuse to participate in the distribution if there is insufficient capacity and resources to accommodate the minors with "respecto y garantías" (respect and guarantees).

• Government's Defense: The government, through the Minister of Digital Transition and leader of PSOE-M, Óscar López, has defended Madrid as a "tierra de acogida" (land of welcome) and accused Ayuso of choosing "racismo y la xenofobia antes que los derechos humanos" (racism and xenophobia before human rights).
• Canary Islands' Approval: The President of the Canary Islands, Fernando Clavijo, has welcomed the agreement as "una magnífica noticia" (magnificent news), as it aligns with their long-standing demand for the redistribution of minors.

• Vox's Strong Opposition: The far-right Vox party has condemned the government's "política de puertas abiertas" (open-door policy) and calls for the repatriation of those who enter Spain illegally. They believe migrants lack the "voluntad de integración" (will to integrate).

II. Increase in International Passenger Arrivals:

• Positive Trend: Spain experienced a 6.4% increase in international passenger arrivals in February compared to the previous year, reaching 6.7 million travelers.
• Low-Cost Carriers: Low-cost airlines accounted for the majority (61%) of arrivals and saw a 10% increase in their presence.

• Important Note: These figures represent all international flight passengers, regardless of residency, and should not be confused with international tourist numbers.

III. ERC's Stance on Budget Negotiations and Agreement Compliance:

• Conditional Budget Support: Oriol Junqueras (ERC) has warned that if the PSOE government does not fulfill the agreements made with ERC, there will be no general budget in 2025, and potentially not in 2026 either.

• Lack of Predisposition: Junqueras accuses the PSOE of lacking the "predisposición" (predisposition) to carry out the agreed-upon terms, stating they only act when they have no other choice.

IV. Legal Action Against Pablo Echenique for Alleged Hate Speech:

• Lawsuit over Tweet: A Madrid court has ordered a trial for Pablo Echenique, former Podemos MP, over a tweet he posted stating that statistically, it is much more probable for a priest to commit child sexual abuse than a migrant to commit a crime.

• Fiscalía's Opposition: The public prosecutor (Fiscalía) had requested the dismissal of the case and is not pressing charges against Echenique.
• Echenique's Defense: Echenique argued that his tweet was not intended to criminalize all priests but to defend migrants against statements made by the Archbishop of Oviedo.
• Abogados Cristianos' Reaction: Abogados Cristianos celebrated the court's decision, stating they will not tolerate public figures promoting hatred towards Christians.

• Echenique's Response: Echenique responded on social media, stating it was an "honor" to be sued by the organization and criticizing their actions in other legal cases.

Review of Recent Economic and Geopolitical Developments in Spain and Beyond

We review news, focusing on the economic impact of the COVID-19 pandemic in Spain and globally, the ongoing conflict in Ukraine with a focus on the Kursk region, recent Spanish inflation data, and trends in mortgage foreclosures.

In today episode:

Álvaro García Ortiz, the State Attorney General, has denied leaking emails related to the tax fraud case of Isabel Díaz Ayuso's boyfriend. He stated that he routinely deletes content from his mobile phone for security and legal reasons, and that he has changed his phone six times in the last four years. The Supreme Court rejected the annulment of his appointment, and he has not responded to the judge or the accusations, but only to the State Advocacy, which is his defense. The judge is investigating whether García Ortiz and the provincial prosecutor of Madrid, Pilar Rodríguez, leaked the emails, and García Ortiz denies having facilitated the emails to anyone or having given orders to prosecutors regarding this matter. He also denies trying to harm Ayuso's boyfriend or hinder his agreement.

Additionally, a Spanish satellite, SpainSat NG I, was launched from Cape Canaveral. It is the most advanced secure communications satellite ever built in Europe and will provide secure communications for the Spanish Armed Forces and NATO. The satellite has a life of about 15 years and is designed to operate in the X, Ka, and UHF bands.

Lastly, a judge is investigating Íñigo Errejón for an alleged sexual assault. The judge has requested Sumar’s internal investigation, as well as information regarding interviews given by the accuser, Elisa Mouliaá. The judge has also called witnesses and requested analysis of the mobile phones of both Errejón and Mouliaá.

In todays episode:

Spain Today - News summary October 22 2024

This briefing doc summarizes three news articles from RTVE.es, providing insights into recent developments in Spanish politics and justice:

"Ayuso refuses to attend bilateral meeting with Sánchez this Friday"

"Samuel Luiz Trial: Everyone heard 'Fucking Faggot'"

"Podemos to consult its base on whether to support the budget"