Winter vacation can’t start soon enough for Pedro Sánchez. Spain’s governing Socialist Party is being battered by a deluge of sexual harassment scandals that is prompting the resignation or dismissal of mayors, regional leaders and even officials employed in the prime minister’s palace. Within the party, there’s open recognition that its self-proclaimed status as the country’s premier progressive political entity is being severely undermined. The scandals are also provoking major fractures within Sánchez’s coalition government and parliamentary alliance, with even his most reliable collaborators demanding he make major changes — or call snap elections. Deputy Prime Minister Yolanda Díaz, whose far-left Sumar party is the junior partner in Sánchez’s coalition government, said on Friday that a “profound Cabinet reshuffle” was needed to make a clean break with the rot. Aitor Esteban, president of the Basque Nationalist Party — one of the government’s most reliable parliamentary partners — said if the Socialists fail to halt the “daily hemorrhage of news stories,” snap elections must be held. Spain’s Socialists are no strangers to scandal, having spent the past two years dealing with endless headline-grabbing revelations detailing the alleged embezzlement of public funds by former Transport Minister José Luis Ábalos and party boss Santos Cerdán — both of whom maintain their innocence. Sánchez has so far weathered the storms by insisting the corruption cases are limited to just a few bad apples, and arguing that only his government can keep the country on a socially liberal track. But the scale of the sexual harassment scandals revealed in recent days — which have coincided with anti-corruption raids in government buildings — represent an unprecedented challenge for the prime minister. There are serious doubts that Sánchez’s “stay-the-course” playbook will suffice to see his government through this latest political earthquake. GROWING SKEPTICISM When Sánchez came to power in 2018 he boasted that he led “the most feminist government in history,” with 11 of the country’s 17 ministries led by women. Over the past seven years his successive administrations have passed legislation to ensure gender balance in key sectors, fight gender-based violence and promote gender equality abroad. But the actions of some of Sa´nchez’s fellow Socialists are fueling growing skepticism about whether the governing party truly respects women. Last summer the prime minister apologized to supporters and expressed his “shame” after the release of wiretaps on which the Spanish police alleged former Transport Minister Ábalos could be heard describing his trysts with female sex workers. Ábalos, for his part, claims the recordings have been manipulated and the voice they capture is not his. Weeks later, sexual harassment complaints against another of the prime minister’s long-time collaborators, Francisco Salazar, forced his resignation on the very day he was meant to assume a new role as one of the party’s top leaders. That scandal resurfaced this month after Spanish media revealed the party had slow-walked its investigation into the alleged abuses committed by Salazar, who maintains his innocence. Last week Sánchez said he took “personal responsibility” for the botched investigation and apologized for not reaching out to Salazar’s victims. He also ordered the dismissal of Antonio Hernández, an official employed in the prime minister’s palace whom Salazar’s victims had singled out as the harasser’s alleged “accomplice.” Hernández denies the accusation. Sánchez’s attempts to contain the situation don’t appear to have quelled indignation over the party’s failure to address Salazar’s alleged abuses, and the frustration has resulted in a version of the #MeToo movement within the Socialists’ ranks. Deputy Prime Minister Yolanda Díaz, whose far-left Sumar party is the junior partner in Sánchez’s coalition government, said on Friday that a “profound Cabinet reshuffle” was needed to make a clean break with the rot. | Perez Meca/Getty Images Over recent days, the party’s boss in Torremolinos has been suspended from his post after being denounced for sexual harassment by an alderman, who also accused the Socialists of failing to act when she first reported the alleged abuses last summer. Belalcázar’s mayor has also stepped down following the publication of sexually explicit messages to a municipal employee, and the launch of an investigation for alleged harassment has prompted the Socialists’ deputy secretary in the province of Valencia to leave the party. The three officials deny the accusations against them. So, too, does José Tomé, who insists the multiple sexual harassment complaints that resulted in his resignation as president of the Provincial Council of Lugo this week are completely unfounded. The admission of regional leader José Ramón Gómez Besteiro that he had been aware of the allegations against Tomé for months prompted the party’s regional equality czar to step down in disgust, and are generating doubts regarding the Socialists’ political future in the Galicia. TROUBLED TIMES The barrage of sexual harassment complaints are a major problem for Sánchez. Women are a key segment of his party’s voter base: Female voters tend to participate in elections to a greater extent than men, and have historically mobilized in favor of the Socialists. But surveys by the country’s national polling institute reveal that women are becoming increasingly disenchanted with the party. In a poll carried out shortly after the Ábalos recordings were released, support for the Socialists among female voters dropped from 26.2 percent to 19.4 percent. Pilar Bernabé, the party’s equality secretary, admitted on Friday that the wave of harassment complaints marked a “before and after” moment for the Socialists, who now had to prove that they have zero tolerance for abuse. “Sexism is incompatible with Socialism,” she added. The challenges to the party’s bona fides are less than welcome at a moment when it faces multiple corruption investigations. In addition to the ongoing probes into Ábalos and Cerdán — both of whom were ordered jailed without bond last month — this week former Socialist Party member Leire Díez along with Vicente Fernández, the former head of the state-owned agency charged with managing Spain’s business holdings, were arrested for alleged embezzlement and influence peddling. At their respective bail hearings, Díez invoked her right to remain silent, while Fernández denied any wrongdoing. Days later, the elite anti-corruption unit of Spain’s Civil Guard raided several agencies managed by the Ministry of Finance and the Ministry of Ecological Transition and the Demographic Challenge, as well as the headquarters of the Spanish Postal Service, as part of a related investigation into the alleged rigging of public contracts. CAN SÁNCHEZ CARRY ON? During a campaign event headlined by Sa´nchez on Sunday, party members urged the prime minister to act. “Take a firm hand to the harassers, the womanizers, the chauvinists!” said Irene Pozas, head of the Socialist Youth in the province of Cáceres. “Don’t hold back, Pedro: The women of the Socialist Party must not have any cause for regret!” Pedro Sánchez may be hoping for relief from the scandals during the upcoming holiday break in Spain, but it’s unclear if his party, and the weak coalition government it leads, will be able to recover. | Marcos del Mazo/Getty Images While admitting shortcomings in the party’s internal mechanisms for handling complaints, Sánchez defended the Socialists’ determination to “act decisively and transparently” to tackle sexism and corruption. The prime minister also defiantly asserted his will to carry on, telling supporters that “governing means facing the music and staying strong through thick and thin.” Sánchez may be hoping for relief from the scandals during the upcoming holiday break in Spain, but it’s unclear if his party, and the weak coalition government it leads, will be able to recover. Although the prime minister insists he intends to govern until the current legislative term ends in 2027, his inability to pass a fresh budget and wider difficulties in passing legislation jeopardize that goal. The Socialists’ parliamentary allies are reluctant to see Sánchez fall because they know snap elections will almost certainly produce a right-wing government influenced by the far-right Vox party. But they are also wary of being associated misogyny and fraud — especially if voters may soon be heading to the polls. “Stopping the far right and the extreme right is always a non-negotiable duty, but it is not achieved merely by saying it, but by demonstrating that we are better,” tweeted the president of the Republican Left of Catalonia, Oriol Junqueras. “Those who abuse and become corrupt cannot regenerate democracy.”

Spanish Attorney General Álvaro García Ortiz resigned Monday, stepping down before a judicial ruling banning him from holding public office for two years went into effect. Spain’s Supreme Court last week convicted García Ortiz of leaking details of a tax probe involving the partner of Madrid’s regional leader Isabel Díaz Ayuso, a rising star among the country’s conservative voters. The outgoing attorney general denies leaking the information, and several journalists who published articles about the probe testified he was not their source. Although the court announced García Ortiz’s guilty verdict within days of his trial’s conclusion, the panel of judges who tried him has yet to publish the legal reasoning behind the ruling. In a resignation letter addressed to Justice Minister Félix Bolaños, García Ortiz said that his “deep respect” for judicial decisions and “desire to protect the Spanish Public Prosecutor’s Office” obliged him to step down immediately. Spanish Prime Minister Pedro Sánchez on Sunday said he “regretted” the conviction and affirmed his belief in the outgoing attorney general’s innocence. But he also underscored the sanctity of the rule of law in Spain, insisting the government “respects rulings and abides by them.” Sánchez added that there were legal channels by which García Ortiz can “address any controversial aspects of this ruling.” The outgoing attorney general could file an appeal with the country’s Constitutional Court, or even seek to challenge it beyond Spain’s borders. García Ortiz’s conviction has generated immense controversy in Spain, with opinions split largely along ideological lines. While the center-right People’s Party and far-right Vox group have cheered the court’s decision, Sánchez’s ruling coalition has rallied around him, accusing the judiciary of being weaponized by conservative political forces. Groups less friendly to Sánchez have also sided with with García Ortiz, citing their own, unhappy experiences with alleged “lawfare” in Spain. Last week the Catalan separatist Junts party — which recently staged a public breakup with the Spanish government — said it was unsurprised by the ruling “because we know how the Supreme Court works.” The usually critical, far-left Podemos party on Monday said the attorney general’s exit was the result of a “judicial coup.”

Spain’s Supreme Court has just taken its battle with Prime Minister Pedro Sánchez to a whole new level.  The court on Tuesday banned Attorney General Álvaro García Ortiz from holding public office for two years for allegedly leaking details of a tax probe involving the partner of Madrid’s regional leader Isabel Díaz Ayuso, a rising star among the country’s conservative voters. Justice Minister Félix Bolaños said that the government was obliged “to abide by the sentence” and appoint a new attorney general. But he stressed the executive’s disagreement with the conviction, and reaffirmed its belief in García Ortiz’s innocence. The ruling risks turning that feud into a constitutional crisis, with the judiciary seemingly taking aim at members of the executive running Europe’s fourth-largest economy. The clash has taken a toll on Sánchez, who has long claimed to be the target of “lawfare,” accusing conservative judges of pursuing baseless cases against his allies and family.  Last year the prime minister briefly considered stepping down after his wife was named as the target of a judicial investigation that is ongoing, but widely considered to be baseless. His brother, meanwhile, is due to face trial next year on influence-peddling charges linked to a civil service post he took before Sánchez came to power. Both of the prime minister’s family members deny wrongdoing and say the cases are politically motivated. A FAKE STORY AND AN ALLEGED LEAK The case against García Ortiz dates to early 2024, when Spanish media began reporting on a tax fraud investigation into Ayuso’s partner, businessman Alberto González Amador. In March of last year, Spanish daily El Mundo published an article alleging the Madrid prosecutor’s office had offered González Amador a plea deal — a fake news story that Ayuso’s chief of staff, Miguel Ángel Rodríguez, later admitted he spread to selected journalists. When reporters sought confirmation, the prosecutor’s office clarified that it was actually the defense who proposed a plea deal by which the accused would admit to committing tax fraud in exchange for a reduced sentence. But several journalists published articles with that information ahead of the clarification’s release, sparking an investigation into whether emails between prosecutors and González Amador had been leaked. In a surprise twist, García Ortiz was charged over the alleged disclosure. At last week’s Supreme Court trial, the attorney general denied leaking the messages, with his defense attorneys demonstrating that dozens of officials had access to the allegedly leaked emails. Several journalists also testified that García Ortiz was not their source. JUDICIAL TENSION García Ortiz’s case was tried by a panel of seven judges, with the five conservative judges backing the conviction and the two progressives dissenting. The verdict was announced unusually quickly — even before the court had drafted its legal reasoning. It remains unclear how the judges will justify the decision, but it’s possible they were swayed by González Amador’s lawyer, who argued that the journalists who testified had a vested interest in protecting García Ortiz — if he was their leaker. In a surprise twist, García Ortiz was charged over the alleged disclosure. | Gustavo de la Paz/Europa Press via Getty Images Speaking later at an event marking the 50th anniversary of dictator Francisco Franco’s death, Sánchez appeared to allude to the case, warning that “democracy is not a permanent conquest: it is a privilege we must defend every day from unfounded nostalgia, economic interests and attacks that constantly evolve.”  “Today, these attacks take the form of disinformation campaigns and abuses of power,” he added. The leader of the conservative opposition, People’s Party boss Alberto Núñez Feijóo, cheered the conviction, describing the attorney general as “someone who was supposed to be prosecuting crimes, but instead committed them.” He demanded Sánchez step down immediately. But Sánchez’s ruling coalition has rallied around him, accusing the judiciary of being weaponized by conservative political forces. Health Minister Mónica García, from the left-wing Más Madrid party, called the ruling an “affront” to all citizens.  “This is a lethal blow to the rule of law, the requirement to present incriminating evidence, [and] the presumption of innocence,” she added.

Carlos Mazón, the center-right president of Spain’s Valencia region, announced his resignation Monday, caving to pressure to take political responsibility for the devastating floods in which 229 people died one year ago. It became evident last week that if Spain’s conservatives want to keep governing in the region, Mazón had to go. Backed by the People’s Party (PP) leadership, the regional president had been able to resist the tens of thousands of Valencians who called for his resignation in mass protests over the past 12 months. But the breaking point came at last Wednesday’s state funeral for the victims, at which King Felipe VI and other bewildered dignitaries watched mourning families shout insults at Mazón, whom they referred to as an “assassin.” After a weekend of “reflection” and a talk with PP leader Alberto Núñez Feijóo, the regional president admitted Monday he couldn’t “do it anymore.” Mazón is seen as the embodiment of the regional government’s botched response to the catastrophe. In the lead-up to the floods, the PP politician downplayed the threat posed by the severe weather forecast in the region. It was later revealed that Mazón had remained at a private lunch with a female journalist as the storm raged and did not show up at the crisis center until after dark. His absence is cited as a factor in the regional authority’s decision to delay sending an SMS alert warning locals of the danger until 8:28 p.m., when most of the victims had already drowned. Within days of the disaster, victims’ families began demanding that Mazón take political responsibility for the disaster and resign. But despite the mounting evidence that the regional government had mismanaged the crisis, PP leader Feijóo backed the center-right politician. Feijóo’s initial willingness to support Mazón reflects Valencia’s importance for the PP. The region is one of the fastest growing in Spain, and its conquest by the conservatives in 2023 was seen as a major victory for the party. But the center-right governs in minority in Valencia, and there were fears that Mazón’s ouster could jeopardize the hard-won prize. So Spain’s conservatives were mobilized to shift blame onto center-left political figures like Prime Minister Pedro Sánchez, then-Deputy Prime Minister Teresa Ribera, and even the scientists at the country’s National Meteorological Agency. Over the past 12 months, however, Spanish courts exonerated both Sánchez and Ribera, underscoring that the regional government was the only entity authorized to manage the crisis. Spain’s state forecasters have similarly been cleared, with evidence proving their warnings about the coming storms were ignored. In the meantime, the Valencian judge leading the probe meant to establish blame for the disaster has indicted members of Mazón’s team, and only spared the center-right politician because his presidential status means he can only be indicted by Valencia’s High Court of Justice. Mazón on Monday recognized that he had made “mistakes,” but bitterly complained that he was the victim of a “brutal campaign” to force his ouster. He declined to dissolve the Valencian parliament and call snap elections, or to resign his post as a lawmaker, ensuring he maintains a degree of judicial immunity.

Catalan separatists voted to sever ties with Spanish Prime Minister Pedro Sánchez’s Socialists, further weakening his minority government. Citing a “lack of will” from the Socialists, separatist Junts’ party leader Carles Puigdemont said Sánchez had failed to carry out the promises made in 2023 when he persuaded Junts’ seven lawmakers in the Spanish parliament to back his bid to remain in power. The break is dire for Sánchez, whose government has no hope of passing legislation without the support of Junts’ lawmakers. The prime minister has not been able to get a new budget approved since the start of this term and has instead governed with extensions of the 2022 budget and EU recovery cash. Without the backing of Catalan separatist lawmakers, the Socialists have no way to secure the additional funds needed to comply with U.S. President Donald Trump’s demands Madrid increase its defense spending. Puigdemont said the Socialists no longer “have the capacity to govern” and challenged Sánchez to explain how he intends to remain in power. But the exiled separatist leader appeared to reject teaming up with the center-right People’s Party and the far-right Vox group to back a censure motion to topple Sánchez outright. “We will not support any government that does not support Catalonia, this one or any other,” the separatist leader said, apparently ruling out collaboration with the parties, both of which are opposed to the separatist movement and its nationalist objectives. INCOMPLETE COMMITMENTS During his press conference in Perpignan, Puigdemont reprimanded Sánchez and his Socialist Party for failing to keep its promises. In exchange for Junts’ crucial support in 2023, the prime minister’s party committed to passing an amnesty law benefiting hundreds of separatists and other measures. While many of those vows — among them, new rules allowing the use of Catalan in the Spanish parliament — have been fulfilled, others are pending. The Spanish parliament passed the promised amnesty bill last year, but its full application has since been halted by the courts. Spain’s Supreme Court has specifically blocked Puigdemont — who fled Spain following the failed 2017 Catalan independence referendum and has since lived in exile in Waterloo, Belgium — from benefiting from the law, citing pending embezzlement charges. Carles Puigdemont said the Socialists no longer “have the capacity to govern.” | Gloria Sanchez/Getty Images The lack of change in his status quo is a source of deep frustration for the separatist leader, who in a 2024 interview with POLITICO said his greatest desire was to “go home to Girona, to enjoy my homeland and be with my wife and daughters … to lead a normal life that will allow me to become anonymous once again.” Puigdemont also cited the Socialists’ inability to get Catalan recognized as an official EU language as a reason for the break in relations. Spanish diplomats have spent the past two years lobbying counterparts in Brussels and national capitals and recently persuaded Germany to back the proposal. But numerous countries remain opposed to the idea, arguing the move would cost the EU millions of euros in new translation and interpretation fees and embolden Breton, Corsican or Russian-speaking minorities to seek similar recognition. The separatist leader added that the Sánchez government’s reluctance to give Catalonia jurisdiction over immigration within that region proved that although there might be “personal trust” between the Socialists and Junts’ representatives, “political trust” was lacking. Junts’ members are now called upon to either ratify or reject the executive committee’s decision in an internal consultation that concludes Thursday. The party’s supporters, who include Puigdemont’s most devoted followers, are expected to overwhelmingly back the move to break with the Socialists. Over the past two years Junts has hardly been an unwavering source of support for Sánchez’s weak minority government. The party has declined to back key bills and stressed that it is not part of the “progressive” coalition composed of the Socialists and the left-wing Sumar party, but rather a pragmatic partner that is solely focused on Catalonia’s interests. At a meeting of the Socialist Party leadership in Madrid on Monday, Sánchez insisted the party should “remain open to dialogue and willing to engage” with Junts. Following Puigdemont’s speech, Science and Universities Minister Diana Morant expressed doubts “Junts’ electorate voted in favor of letting Vox or the People’s Party govern” and said the Catalan separatists needed to “choose whether they want Spain to represent progress or regression.”

Spain will attempt Monday to reenergize the EU’s stalled proposal to end seasonal clock changes and demand Brussels fulfill its promise to end daylight saving time. “As you know, the clocks will change again this week and I, frankly, no longer see the point in it,” Spanish Prime Minister Pedro Sánchez said in a video posted on X Monday morning. “In all the surveys in which Spaniards and Europeans are asked, the majority are against changing the time,” he said. “Moreover, there’s plenty of scientific evidence that shows it barely helps to save energy and has a negative impact on people’s health and lives.” The bloc’s transport, telecoms and energy ministers have traditionally handled discussions regarding the EU’s time policies, which can affect the functioning of the all-important single market and have an impact on power use and transport safety. The issue was not scheduled to be debated at Monday’s ministerial summit in Luxembourg but, upon his arrival at the meeting, Spanish Secretary of State for Energy Joan Groizard announced he had requested its inclusion on the agenda. “The energy system is changing a lot, and it’s important to reopen the debate to find a solution that works as well as possible,” Groizard said. Representatives from northern EU members including Finland and Poland have repeatedly raised concerns about clock-changing, citing data which shows the practice has negative physical or mental effects on an estimated 20 percent of Europe’s population. Indeed, 84 percent of the 6.4 million Europeans who participated in a 2018 European Commission public consultation on the matter said the bloc should put an end to daylight saving time. In his social media post, Sánchez said it was high time for the EU to carry out the proposal announced by then-European Commission President Jean-Claude Juncker during his 2018 State of the Union address in the European Parliament. “Clock-changing must stop,” Juncker told lawmakers, insisting that daylight saving shifts would end by October 2019 at latest. “We are out of time.” But Juncker’s proposal irritated national leaders, who questioned the Commission’s mandate for proposing such a shift, let alone imposing a short timeline for its costly implementation. Then-Portuguese Prime Minister António Costa — who became the president of the European Council last year — rejected the idea altogether, citing the advice of technical experts who said the change would be detrimental to his country’s citizens. Greece, too, was opposed to the change. The split among national leaders permitted daylight saving to survive Juncker’s 2019 deadline and the European Parliament’s later call for time changes to end by 2021. It’s unclear if Spain’s effort is quixotic: to secure the Council’s endorsement of the proposal, it requires the backing of a qualified majority of member countries. Sánchez will need to convince 15 out of the bloc’s 27 member countries, or a group of countries representing at least 65 percent of the EU’s population, to back the idea — and hope fewer than four capitals oppose it outright. Seasonal clock-changing was first introduced in Europe during World War I in a bid to conserve coal, but was abandoned after the conflict ended. Similar energy concerns prompted most countries to reintroduce the scheme during World War II, and in response to the 1970s global oil crisis. In 1980 the then-European Communities issued its first directive on time arrangements to ensure all EU members followed the practice and made the biannual switch at the same date and time. The current EU rules, which have been in place since 2001, specify EU member countries move their clocks forward one hour at 1 a.m. on the last Sunday of March, and wind back one hour on the last Sunday in October.

St. George’s Day in Catalonia — commemorating the slaying of an evil dragon — is meant to be a celebration of love, accompanied by romantic exchanges of books and roses. This April, a highly political banking deal loomed unexpectedly large over festivities. For the iconic Catalan lender Banc Sabadell, the dragon to be killed was Madrid-headquartered banking giant BBVA, which is pressing a hostile offer to buy it for €17 billion in stock. The catchphrase of Banc Sabadell’s ads, sung on radio and TV, was: “It’s April again, the insatiable dragon is here. If we kill him, he doesn’t seem to learn. What should we do to make him understand?” Prominent Catalan personalities then proposed various ways to fend off dragon attacks. Tensions are now at an all-time high as Barcelona and Madrid await the results on Oct. 10 of the second takeover offer by BBVA, at a higher price per share, to Banc Sabadell’s shareholders. To many Catalans, the deal is viscerally political — and not simply a matter of stock valuations. While the EU may be pushing for more bank mergers to ensure European finance houses are more internationally competitive, the idea of losing Banc Sabadell to interests in Madrid is anathema. Banc Sabadell has a symbolic cachet in Catalonia. Were the region to win independence, it would be an important economic motor for the nation. It is critical to funding the region’s all-important small- and medium-sized enterprises. This makes the deal a headache for Prime Minister Pedro Sánchez. Although the takeover has been approved by Spain’s antitrust authority, he has sought to attach extra hurdles to it to please his Catalan nationalist allies, who are vital to the survival of his fragile government. EMOTIONAL ELEMENT Catalonia’s Economy Minister Alícia Romero supports the Spanish government’s extra restrictions on the deal — which include a three-year postponement of the merger once BBVA acquires a majority of shares. During these three years BBVA would not be able to fire staff, close offices or merge its IT systems or accounts, keeping Banc Sabadell as a separate entity. That makes the merger more risky for BBVA. “It is true that there is an emotional element here,” she told POLITICO. “This is a bank that was born in Sabadell, a prominent textile city, of the Catalan bourgeoisie, which has always been committed to financing SMEs” — a sector she called Catalonia’s “economic fabric.” Romero is member of the Catalan Socialist Party and an ally of Sánchez. Still, she argued the core objection to the deal was that it would reduce the number of banks in the region, which would lessen competition and worsen conditions for customers. Catalonia’s Economy Minister Alícia Romero supports the Spanish government’s extra restrictions on the deal. | David Zorrakino/Europa Press via Getty Images “If Banc Sabadell disappeared, it could leave many SMEs without this financing, without these possibilities to grow and open up to markets,” she said. Romero also argued that the government would not like to see the bank’s decision-making power shift to Madrid, since that could mean job losses in Catalonia and office closures. THE EU WANTS MERGERS For its part, BBVA says it doing exactly what the EU wants. BBVA chair Carlos Torres has resolutely defended the deal, insisting that both Europe and Spain need financial powerhouses of scale to compete on global markets. He stressed “both BBVA and Banco Sabadell shareholders will become the owners of a bank better prepared for the future.” In response to Banc Sabadell’s dragon ads, BBVA launched a rival campaign called “Let’s Move Forward,” featuring actors portraying shareholders from both banks discussing reasons why the merger would benefit both sides. BBVA is opting to sweeten the deal by announcing the highest dividends the company has ever distributed — including for Banc Sabadell’s shareholders who decide to swap shares for its own. While Catalans have been the most outspoken opponents of the deal, no major Spanish party has come out strongly in favor. The center right People’s Party and far-right Vox have largely remained tight-lipped, just warning against the concentration of the banking sector. The deal is also a particularly public and political clash because of the importance of Banc Sabadell’s retail shareholders, who make up about 48 percent of its owners. “Banc Sabadell’s shareholders are, for the most part, SMEs and retailers,” said Iñigo de Barrón, former president of the Spanish association of economy journalists, who covered banks for more than 20 years. “We’re talking about the middle class, people who feel that if they end up in the hands of a very large bank that doesn’t know them at all, it’s not a pleasant thing.” “It’s a sentimental takeover bid, the most emotional I’ve ever seen,” he added. MADRID VS. BARCELONA VS. BRUSSELS After losing most of their small banks in the wake of the eurozone financial crisis — many of them absorbed into BBVA — Catalans still carry the trauma of seeing outside giants swallow their economic power. “In the last 20 years, the entire Catalan banking and credit system has been dismantled,” said Albert Batet, spokesperson of the pro-independence Junts party. The merger “means a loss of economic weight for Catalonia compared to the economic weight of Madrid, which is where BBVA has its headquarters, a bank from Madrid, with a Spanish identity,” Batet added. Their rivals from the Catalan Republican Left, also pro-independence, agree. “Weakening the Catalan financial system will ultimately result in job losses, affect the financing of SMEs, and — seen from the perspective of the state — it benefits the concentration of economic power in Madrid and its local economic network, and we don’t like that,” said Isaac Albert, spokesperson for the party. “It’s not just about sentimental reasons — although of course, we are concerned about losing a Catalan bank — it’s mainly about the real impact this has,” he said. Catalan politicians say they support Europe’s vision of trying to foster big banks to compete with other global actors, but they don’t want to take that step themselves. They argue such mergers should be among banks from different countries rather than within one member country, because, they say, that simply weakens the consumer’s position by reducing competition. “Starting with two Catalan-Spanish domestic banks doesn’t seem like the solution to me,” said Catalan Economy Minister Romero. “The solution has to come from the top; it needs a very strong and ambitious strategy from all countries. It’s not that we have to be the ones to start,” she added.

MADRID — Spain’s tough stance on Israel may have caused anger in Jerusalem but it has provided a popularity boost for under-pressure Prime Minister Pedro Sánchez. The last two weeks have seen Sánchez’s left-wing coalition ramp up its criticism of Israel, triggering a diplomatic spat and a fierce war of words. Having become the most senior European leader to describe Israel’s actions as “genocide” in June, earlier this month the socialist prime minister announced a series of measures that included a weapons embargo and the banning of two Israeli government ministers from Spain.  Israel responded by barring two of Sánchez’s ministers from entering the country while labelling the Spanish government as antisemitic. Sánchez then praised pro-Palestinian protesters who repeatedly disrupted the Vuelta a España cycling race over the involvement of an Israeli team, culminating in the cancellation of the final stage and injuries to 22 police officers amid chaotic scenes in Madrid. “Mr Sánchez and his communist ministers encouraged the violence,” said Gideon Sa’ar, the Israeli foreign minister. Sánchez has since called for Israel to be barred from all major international sporting events, and public broadcaster RTVE has said Spain will not take part in the Eurovision Song Contest if Israel competes. “I’m proud to be part of a government … that is making the world move,” said Óscar López, minister for digital transformation. Israel responded by saying Sánchez was “demonizing” the country and was “on the wrong side of history.” Sánchez has been among Europe’s most outspoken critics of Israel over its response to the Oct. 7, 2023 attacks by Hamas, while also slamming the EU’s failure to act. He expressed concerns about civilian deaths in Gaza directly to Israeli Prime Minister Benjamin Netanyahu in November of that year, and in 2024 his government acknowledged a Palestinian state. DOMESTIC CONCERNS At home, however, Sánchez has been reeling in recent months as his fragile minority government has faced a series of corruption probes and unfavorable headlines. An increasingly strident position on Gaza has provided a badly needed fillip. “He’s at a critical juncture, the worst moment of his tenure, and he has managed to use this issue as a way of reconnecting with his voters and filling a political void,” said Lluís Orriols, a political scientist at Carlos III University. In June, Sánchez was forced to apologize after the release of audio recordings featuring his party’s No. 3, Santos Cerdán, that appeared to implicate him in a vast kickbacks-for-contracts scheme. Another former senior Socialist and close Sánchez ally, José Luis Ábalos, who had been transport minister, had already been implicated, although he insists he became unwittingly involved in the alleged scheme. Both have been forced to leave the party; Cerdán is in preventive custody. Meanwhile, a judge has been investigating Sánchez’s wife, Begoña Gómez, for alleged business irregularities, and his brother, David, is expected to go on trial for charges that include influence peddling. Attorney General Álvaro García Ortiz is due to face trial for revealing confidential information. All deny any wrongdoing. Sánchez praised pro-Palestinian protesters who repeatedly disrupted the Vuelta a España cycling race over the involvement of an Israeli team. | Dario Belingheri/Getty Images The government has cast the cases implicating Sánchez’s family members and García Ortiz as politically motivated. However, the scandals have still dominated the political agenda, giving the impression that the prime minister could fall at any moment. But now the focus has switched — to Gaza. With 82 percent of Spaniards deeming Israel’s actions in Gaza to be genocide, according to the Royal Elcano Institute, a bold stance on the issue makes political sense for the government. Orriols says the Palestinian question has traditionally been a banner issue for those to the left of Sánchez’s own Socialist Workers’ Party (PSOE), such as Podemos and coalition partner Sumar. “Pedro Sánchez is squeezing his rivals to his left. It’s something he’s been doing for years in a very efficient way — poaching the rhetoric or battles that previously belonged to other parties,” he said.  “This can tighten the connection to his own voter base, while stealing electoral space from Sumar and Podemos. It could help the PSOE to cushion the damage caused by corruption and political inaction.” Israel responded by barring two of Sánchez’s ministers from entering the country while labelling the Spanish government antisemitic. | Burak Akbulut/Anadolu via Getty Images The government’s dispute with Israel has also left the opposition looking flat-footed. The leader of the conservative People’s Party (PP), Alberto Núñez Feijóo, aware that Spain’s right is traditionally more sympathetic to Israel than the left, has refused to use the word “genocide.” However, with even King Felipe denouncing an “unbearable humanitarian crisis” in Gaza, the opposition leader has been forced to shift his position closer to that of Sánchez and to criticize Israel’s “massacre of civilians,” while denouncing the prime minister for using the conflict in the Middle East as a smokescreen. “You don’t defend any noble cause, you just want to cover up your own disgraces,” Feijóo told Sánchez in a parliamentary debate. Others in the PP have taken a more radical line. Isabel Díaz Ayuso, the hardline president of the Madrid region who is seen as a potential threat to Feijóo for the party leadership, has made a point of boldly supporting Israel. She had her photograph taken with the Israel-Premier Tech cycling team at the center of the Vuelta turmoil, and her administration has reportedly attempted to pressure schools not to hang Palestinian flags. As long as Gaza remains headline news in Spain, both Ayuso and Sánchez are likely to benefit.

Spanish Prime Minister Pedro Sánchez on Monday announced a permanent ban on the sale of weapons and ammunition to Israel as part of a package of measures aimed at “stopping the genocide” in Gaza. In addition to the ban on sales from Spain, Sánchez said ships carrying fuel destined for Israel’s armed forces will be prohibited from docking in Spanish ports, while aircraft known to be transporting military materiel will be forbidden from entering the country’s airspace. Sánchez said that while Israel has a right to exist and defend itself, it does not have the prerogative to “exterminate a defenseless people,” as he cited the international community’s failure to address the killing of tens of thousands of civilians in Gaza. “Protecting your country and your society is one thing; bombing hospitals and starving children is another,” he added, stressing Spain’s responsibility to do whatever it can to halt “what the U.N. special rapporteur and many experts consider a genocide.” The package of measures announced by Sánchez forbids people who have “directly participated in genocide, human rights violations and war crimes in the Gaza Strip” from entering Spain. The prime minister did not clarify how the participation would be assessed, or how those individuals would be identified. The package also includes new restrictions on consular services offered to Spanish citizens residing in illegal Israeli settlements in the West Bank, as well as a total ban on products imported from occupied territories. Sánchez has long been one of the EU’s most vocal critics of Israel’s military assault on Gaza and last year recognized Palestinian statehood. But the left-wing Sumar party, junior members in Sánchez’s fragile minority government, has been pressuring the Socialist prime minister to take more aggressive action to support Gaza. Sumar leader and Deputy Prime Minister Yolanda Díaz on Monday celebrated the adoption of the new measures, but urged Sánchez to go even further and withdraw Spain’s ambassador from Tel Aviv. In response to Sánchez’s announcement, Israeli Foreign Minister Gideon Sa’ar accused the Spanish government of being “anti-Semitic” and using a “hostile anti-Israeli line” to “distract attention from serious corruption scandals.” Sa’ar also banned Díaz and Youth Minister Cira Rego — the daughter of a Palestinian refugee — from entering Israel, citing their “support for terrorism and violence against Israelis.”

Spain has shelved plans to purchase F-35 fighter aircraft, Spanish newspaper El País reported today. Preliminary contacts for the purchase of the fifth-generation American stealth fighters have been suspended “indefinitely” and the government will seek European alternatives like the Eurofighter or the upcoming Future Combat Air System, the paper reported. “The Spanish option involves the current Eurofighter and the FCAS in the future,” the Spanish defense ministry told POLITICO. Spain’s decision would be a major setback for planemaker Lockheed Martin, as Madrid issued a non-binding request for information on the F-35 in 2017.  Spain’s 2023 budget included an initial allocation of €6.25 billion to replace navy and air force aircraft.  The Spanish navy plans to decommission its Harrier AV8B fighters by 2030 and has expressed interest in replacing them with naval version F-35B models, already purchased by the United States and Italy. The air force also considered the F-35A model as a temporary solution to replace its McDonnell Douglas F/A-18 Hornets while awaiting the FCAS. Madrid’s move could further heat up tensions between Spain and the United States, as Prime Minister Pedro Sánchez is a vocal critic of NATO’s new defense spending goal of 5 percent of GDP, pushed by U.S. President Donald Trump. This article has been updated.