logo
Court to probe if Spain's PM bailed out airline after they paid his wife

Court to probe if Spain's PM bailed out airline after they paid his wife

Local Spaina day ago

The ruling came a day after the Supreme Court found that Spain's top prosecutor -- a government appointee -- might have breached judicial secrecy in another case, potentially paving the way for a trial.
It also follows separate corruption investigations involving Sánchez's wife, his brother, and a former close aide.
Madrid's High Court said it had directed the Civil Service Ministry's Office for Conflicts of Interest to investigate whether Sánchez should have recused himself from a 2020 Cabinet meeting that approved a €475 million bailout for Air Europa during the COVID-19 pandemic.
The probe stems from a complaint filed by the conservative Popular Party, or PP. That complaint alleges that Globalia -- Air Europa's parent company -- was sponsoring projects linked to Sánchez's wife, Begoña Gómez, at the time of the bailout.
"Sánchez gave public funds to someone who had financially supported his wife, and his direct involvement in the bailout must be investigated," PP sources said Wednesday.
The court did not rule on the substance of the allegations.
But it did state that the Office for Conflicts of Interest had a legal obligation to examine the case — even if it ultimately finds no wrongdoing.
A copy of the June 6th ruling was made public on Wednesday.
An initial request by the PP in March was dismissed by the office, which cited a report from the prime minister's general secretariat stating that Gómez had no professional ties to Globalia.
However, the court criticised the office for relying solely on that report and said it had found no evidence that a formal investigation had been conducted.
Gomez has been under judicial investigation since April over allegations that she may have used her husband's position to advance her professional interests.
A court recently ordered part of that probe -- specifically regarding her ties to Globalia -- to be dropped due to a lack of evidence.
Sánchez has consistently defended his wife and his government, accusing right-wing and far-right parties of orchestrating what he describes as a smear campaign aimed at destabilizing his administration.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Plot thickens in corruption case involving Spain's ruling party and PM
Plot thickens in corruption case involving Spain's ruling party and PM

Local Spain

time8 hours ago

  • Local Spain

Plot thickens in corruption case involving Spain's ruling party and PM

Santos Cerdán, the party's organisation secretary and its third-ranking figure, is suspected of being an accomplice in the alleged improper awarding of a public contract during the Covid-19 pandemic, according to a newly published judicial report. A judge said a police report "reveals the existence of consistent evidence" suggesting Cerdán acted in collusion with former Transport Minister José Luis Ábalos and his former adviser, Koldo García Izaguirre, in exchange for financial gain. Cerdán, who is also a member of parliament, has been invited to testify voluntarily before the Supreme Court on June 25th. Due to his parliamentary immunity, he cannot be formally charged unless the court proceeds with further steps. "I am absolutely not afraid. I am completely certain that I will not be accused of corruption," he said as he arrived in parliament. The investigation centres on public procurement of medical equipment during the early months of the pandemic. Ábalos, who served as transport minister from 2018 to 2021 and was once a key figure in Sánchez's administration, is accused of receiving illegal commissions through business contracts. He faces charges of corruption, influence peddling, and embezzlement. Ábalos was dismissed from Sánchez's cabinet in 2021 and expelled from the Socialist Party earlier this year but remains a member of parliament as an independent. His parliamentary immunity was lifted in January. During a court hearing in December, he denied receiving any kickbacks and maintained there were no irregularities. Sanchez's wife, Begoña Gómez, and his brother, David Sánchez, are also the target of separate investigations for graft. The Spanish prime minister has dismissed the probes against members of his inner circle as part of a "smear campaign" carried out by the right wing to undermine his government. "Sánchez can no longer hide: he owes the country explanations, resignations, and elections," the deputy leader of the main opposition conservative Popular Party (PP), Cuca Gamarra, wrote on social network X on Thursday.

Court to probe if Spain's PM bailed out airline after they paid his wife
Court to probe if Spain's PM bailed out airline after they paid his wife

Local Spain

timea day ago

  • Local Spain

Court to probe if Spain's PM bailed out airline after they paid his wife

The ruling came a day after the Supreme Court found that Spain's top prosecutor -- a government appointee -- might have breached judicial secrecy in another case, potentially paving the way for a trial. It also follows separate corruption investigations involving Sánchez's wife, his brother, and a former close aide. Madrid's High Court said it had directed the Civil Service Ministry's Office for Conflicts of Interest to investigate whether Sánchez should have recused himself from a 2020 Cabinet meeting that approved a €475 million bailout for Air Europa during the COVID-19 pandemic. The probe stems from a complaint filed by the conservative Popular Party, or PP. That complaint alleges that Globalia -- Air Europa's parent company -- was sponsoring projects linked to Sánchez's wife, Begoña Gómez, at the time of the bailout. "Sánchez gave public funds to someone who had financially supported his wife, and his direct involvement in the bailout must be investigated," PP sources said Wednesday. The court did not rule on the substance of the allegations. But it did state that the Office for Conflicts of Interest had a legal obligation to examine the case — even if it ultimately finds no wrongdoing. A copy of the June 6th ruling was made public on Wednesday. An initial request by the PP in March was dismissed by the office, which cited a report from the prime minister's general secretariat stating that Gómez had no professional ties to Globalia. However, the court criticised the office for relying solely on that report and said it had found no evidence that a formal investigation had been conducted. Gomez has been under judicial investigation since April over allegations that she may have used her husband's position to advance her professional interests. A court recently ordered part of that probe -- specifically regarding her ties to Globalia -- to be dropped due to a lack of evidence. Sánchez has consistently defended his wife and his government, accusing right-wing and far-right parties of orchestrating what he describes as a smear campaign aimed at destabilizing his administration.

What are Socimis and why are they at the heart of Spain's housing debate?
What are Socimis and why are they at the heart of Spain's housing debate?

Local Spain

time2 days ago

  • Local Spain

What are Socimis and why are they at the heart of Spain's housing debate?

In recent years the Spanish government has been trying to solve the housing crisis in the country by passing various laws and reforms, including the Housing Law in 2023, which in turn created many more problems, according to some experts. In January 2025, Prime Minister Pedro Sánchez announced 12 measures aimed at increasing the number of affordable homes, achieve better regulation and give more aid to those who need it. The most eye-catching measure is the proposed 100 percent tax on property buyers who don't reside in the EU, a levy which will double the price they pay for homes n Spain. In addition to building new social housing and cracking down on seasonal rents, among many other measures, the government is also now turning its attention to Socimis (known as Sociedades Anónimas Cotizadas de Inversión Inmobiliarias) to try and further help access to housing. As announced by Sánchez, the government wants to change the tax benefits regime for Socimis, which are essentially property investment vehicles, so that they only apply to companies that manage affordable rentals. Note that this measure will only be implanted on residential Socimis, so those that invest in offices, shopping centres or any other kind of property will not be affected. What are Socimis? According to Delanto Chambers, Anglo-Spanish legal and tax experts: "A Socimi (Sociedades Anónimas Cotizadas de Inversión Inmobiliaria) translates as Listed Corporations for Investing in the Real Estate Market and is similar to a Real Estate Investment Trust in the UK (abbreviated to REIT). Socimis are public limited investment companies, created to encourage long-term investment in the Spanish property market through investment in Spanish urban real estate for rent such as homes, hotels or commercial premises." This essentially means that Socimis are like limited companies listed on stock markets whose only trade in properties. Delanto Chambers, presumably before this latest government announcement, previously described Socimis as "attractive investment vehicles" due to the "substantial tax breaks on transaction costs and profits allowing shareholders to maximise their investment." Crucially, they added, "provided that the investment and dividend distribution requirements are met Socimis are Corporate Income Tax taxpayers, although subject to a tax rate of 0 percent." The government plan for Socimis Socimis' tax benefits could be set to change if the Socialists' draft bill receives parliamentary approval. When announcing the proposal in January, Sánchez said: 'We must finally put an end to the injustice of some investors using this instrument to pay less tax than ordinary citizens when buying the same property.' Back in November, the government green lighted the abolition of the existing Socimi tax regime, which, as noted above, essentially made them exempt if they distributed at least 80 percent of dividends to shareholders. Now, the government is instead proposing they be taxed at the general corporate tax rate of 25 percent. However, they have suggested tax breaks for Socimis that help with Spain's housing crisis: 50 percent if more than 60 percent of the asset portfolio is allocated to affordable rentals, and 100 percent if the profit is additionally reinvested in this type of housing over the following three years. Sánchez's administration will consider properties affordable if their rent does not exceed the index established by the Housing Ministry, if the property is classified as protected, if the rent does not exceed 30 percent of the tenant's income, or if the cost is below €26,400 per year. All the above measures have been suggested because the Spanish government feels Socimis have so far failed to improve the supply of affordable housing in Spain. Experts seem to think the fiscal clampdown will disproportionately affect foreigners, rather than Spaniards. According to market estimates, the measure could in theory impact more than half of total property investment in Spain. Specifically, foreign investment accounts for an average of 61 percent of the total volume in the Spanish real estate sector since 2014, according to data from the consultancy firm Savills. In 2023, 70 percent of Socimis' capital was held by international investors, unsurprising given their generous shareholder remuneration.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store