Spanish PM Vows To Fight On As Corruption Scandal Grows
The scandal erupted on Thursday after the Supreme Court said Santos Cerdan, the third-highest ranking figure in Sanchez's Socialist party, was suspected of involvement in awarding of public works contracts in return for kickbacks.
The case is linked to a broader investigation that already ensnared former transport minister Jose Luis Abalos, once a close ally of the prime minister.
Sanchez is not accused of any wrongdoing but the case adds to mounting legal scrutiny of his inner circle.
His wife, brother and Spain's top prosecutor, who was appointed by Sanchez's government, are all under judicial investigation in separate cases.
The scandals-- none of which have gone beyond the preliminary investigation phase -- have fuelled demands from his critics for him to resign and call early elections.
Centre-right newspaper El Mundo wrote in an editorial on Friday it was "untenable" for him to continue.
The situation was "agonising" for the Socialist leader, who was been in office since 2018, wrote conservative newspaper ABC.
Speaking at his party's headquarters on Thursday, a sombre-looking Sanchez apologised for the scandal but vowed to serve out his term until 2027.
But his ruling coalition junior partner, far-left party Sumar, called for a change in the government's direction in the wake of the scandal.
"It's not enough to say sorry," Labour Minister Yolanda Diaz, the founder of Sumar, told reporters.
At the same time Catalan separatist party Junts has requested an urgent meeting with Socialist leaders to assess the viability of the legislature.
Sanchez's fragile minority government relies on Junts to pass laws in parliament.
Paloma Roman, a political science professor at Madrid's Complutense University, said Sanchez may be forced to call a confidence vote to reassert control.
"What Sanchez needs to do now is to calm his allies' criticism by providing them with more information and addressing the issue of confidence," she told AFP.
The government has so far refused to call a confidence vote.
"The prime minister has to keep earning the public's trust every day, as he's doing," Oscar Lopez, a cabinet minister who is close to Sanchez, said Friday during an interview with news radio Cadena Ser.
"He has a duty to carry out his campaign promises and not let down the millions who voted for him," he added when asked whether a vote of confidence was being considered.
The main opposition Popular Party (PP) has called repeatedly for Sanchez to step down.
But PP leader Alberto Nunez Feijoo, has ruled out the idea of proposing a motion in parliament to try to topple Sanchez, warning it could backfire and bolster the Socialist leader if it fails.
He instead urged Sanchez's allies to reconsider their support, saying they would be complicit in "the biggest wave of corruption" if they refused.
Analysts say Sanchez's coalition partners are reluctant to withdraw their support, fearing that doing so could pave the way for a PP government supported by far-right party Vox -- a prospect many regional and leftist parties view as unacceptable.
"They won't let Sanchez fall -- not out of love, but because they fear a PP-Vox government even more," said Roman.
Sanchez came to power in June 2018 after ousting his predecessor, Mariano Rajoy, in a no-confidence vote over corruption scandals involving the PP.
Most recent opinion polls show the PP holding a slim lead over the Socialists.
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DW
14-07-2025
- DW
Can debt-laden NATO members spend billions more on defense? – DW – 07/14/2025
NATO members recently agreed to increase defense spending to 5% by 2035 — a "quantum leap," according to the military alliance's chief, Mark Rutte. But can its indebted members really afford the hike? The NATO summit at the end of June left Donald Trump happy. The US President called it "tremendous" that the military alliance's 32 members had agreed to ramp up defense spending to 5% of GDP by 2035. He has been pressuring them to do so for years. However, he reserved his customary ire for one member: Spain. After vocal opposition from the country's prime minister, Pedro Sanchez, the Spanish government found a way out of the 5% commitment by claiming it could meet its defense obligations by spending much less. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Trump said the decision was "very terrible" and that they would be made "pay twice as much." Sanchez argued the 5% target — which is broken down into 3.5% on defence and 1.5% on defense-related infrastructure — was unreasonable and that diverting public spending in such a way could damage the economy. In the end, Spain secured an agreement with NATO that granted it an effective opt-out. That has raised questions about the extent to which many member nations will ultimately be able to afford the spending pledges they have made. "The choice to ringfence and prioritize defense amidst public spending cuts is politically challenging and will need strong public messaging to be accepted by the electorate and indeed across governments in office," Fenella McGerty, senior fellow for defense economics at the International Institute for Strategic Studies (IISS), told DW. She points out that when Spain previously signaled a hike in defense spending in April, Sanchez was keen to emphasize that it would not add to the country's debt pile or impact social spending. Ilke Toygür, director of the global policy center at Madrid's IE University, thinks Spain's position was partly about having an "open conversation" on the fact that prioritizing defense spending would impact other key areas of national budgets and could lead to a damaging backlash. "If there is no understanding about the importance of the fight against climate change or on other social issues, for example, housing or support for health or education, then this [defense spending hike] will create the contrary effect that European leaders are trying to get," she told DW. At the end of the day, what Europe really needs is a "sustained defense investment that will make the continent more secure," she said, adding that a "sustained public backlash could create the opposite effect." NATO Secretary-General Mark Rutte has hailed the 5% increase as a "quantum leap" and said it "laid the foundations for a stronger, fairer and more lethal NATO." McGerty believes the 2035 pledge is a "significant commitment," particularly if European members manage to "increase core defense spending to 3.5% of GDP" — up from the current average of 2%. The NATO agreement specifies that 3.5% of GDP should "resource core defense requirements" and meet so-called NATO capability targets — a list of specific defense-preparedness goals, from air defense to land maneuvers. According to NATO, the extra 1.5% of spending will, among other things, "protect critical infrastructure, defend networks, ensure civil preparedness and resilience, innovate, and strengthen the defense industrial base." McGerty acknowledges that the pledge to bolster spending comes "at a time of considerable fiscal pressures" for member states. However, she thinks the 1.5% infrastructure element has a "broad definition" to give countries flexibility. "Many countries are likely already spending this much on such funding areas," said McGerty. Yet, there are still substantial doubts over the capacity of some member states to hit the agreed levels. According to NATO's most recent defense spending figures from 2024, all but eight of the alliance's members were hitting the existing 2% target. A few have caught up in the meantime. However, those furthest behind in terms of military spending — Spain, Belgium, Canada, Italy and Portugal — also have the problem of having high government debt of close to or even over 100% of their gross domestic product (GDP). Greece is an outlier in that it has the highest debt level of all, but it already spends more than 3% on its defense. Ilke Toygür is sceptical if some northern European countries, who during the 2008/2009 financial crisis decried the debt levels of some southern European countries, understand the scale of the challenge for economies ramping up defense spending while managing high existing debt levels. "What will happen if these countries use the next 5-10 years to increase their defense spending. Does it mean more private sector investment is needed?" she wonders. In her opinion, a "fairer assessment of the debt question and the overall impact on the European economy at large" is needed. McGerty argues that countries with strong fiscal positions, such as Germany, can borrow to meet the targets but those with longer-term debt issues will be reluctant to add to that debt. If those still lagging behind the 2% mark are to have "any hope of meeting the 5% target without borrowing more," she noted, they would have to make the kind of dramatic choices abhorred by Sanchez, or hope the private sector comes to the rescue. Increases in military spending would have to be funded through other means, McGerty believes, including, for example, "higher taxation, cuts to other areas of public spending or via other creative funding options including special funds administered by central banks or treasuries, multilateral lending instruments, or mobilizing private investment." While leaders like Sanchez and others are concerned about borrowing and potential cuts, experts say the writing has been on the wall for a while. McGerty noted that NATO chief Rutte stated already in December 2024 that increases in European defense spending would necessarily impact spending on pensions, education and health care, Yet ramping up military spending brings its own financial risks. As Europe rushes to build up its own arms sector, rising inflation in the defense industry, supply chain delays, and labor issues mean ever more money is being needed to meet the same ends. So, Christine Lagarde, the president of the European Central Bank (ECB), warned in March that higher defense spending itself could contribute to inflation — yet another reminder that for many countries, the rush to make Europe safer, will come at a high price.
Int'l Business Times
09-07-2025
- Int'l Business Times
Spain PM Announces Anti-graft Plan As Scandal Rocks Govt
Spanish Prime Minister Pedro Sanchez on Wednesday announced an anti-corruption plan designed with the Organisation for Economic Cooperation and Development in a bid to salvage confidence in his scandal-hit government. The implication of two former Socialist heavyweights and close Sanchez allies in a graft scandal has rocked the minority leftist coalition and thrown its viability into doubt. The crisis is particularly sensitive for a leader who came to power in 2018 vowing to clean up Spanish politics after the rival conservative Popular Party (PP) was convicted in its own graft affair. Sanchez announced a 15-point plan drawn up with the Paris-based OECD's division for anti-corruption and integrity in government during an address to parliament. They include the creation of an independent public integrity agency to prevent, supervise and prosecute corruption, with Sanchez saying existing mechanisms have "generated inefficiencies and vacuums of coordination". Enhanced data analysis aided by artificial intelligence will scan for "vulnerabilities" in public tenders, said Sanchez, after his former right-hand men were suspected of receiving kickbacks in the improper awarding of such contracts. Top officials would also undergo "random and annual wealth checks" during their time in the job, while parties and foundations receiving public funds above 50,000 euros ($58,500) would be obliged to face external audits. Whistleblowers would receive greater protection, specialised sections in courts would be created and the criminal code reformed to harshen punishments for offences against the public administration, added Sanchez. A bombshell police report into the scandal released last month implicated ex-transport minister Jose Luis Abalos and former top Socialist official Santos Cerdan, both key figures in Sanchez's rise to power. Sanchez revealed he had considered resigning over the affair, apologising but defying the opposition by vowing not to "throw in the towel" and call early elections. Since the police report, Cerdan has relinquished his powerful post as Socialist organisation secretary and as an MP, while the party definitively expelled Abalos. The array of far-left and regional separatist parties propping up the government had demanded firm anti-corruption measures as the price for their continued support. Sanchez described the plan as "the biggest boost" to the fight against corruption in Spain "in recent decades". But PP leader Alberto Nunez Feijoo dismissed Sanchez's explanations and reform efforts, saying the Socialists had "operated like a criminal organisation" for years. "We don't know where your direct responsibility begins and where it ends... How will you get us out of this nightmare if you got us into it?" he replied to Sanchez, demanding elections. Separate investigations are underway against Sanchez's wife, brother and Socialist-appointed top public prosecutor, ratcheting up the pressure on one of Europe's longest-serving leftist leaders.
DW
27-06-2025
- DW
Spain slams EU inaction on Israel trade deal – DW – 06/26/2025
Spanish PM Sanchez wants the bloc to suspend a major trade deal with Israel over its Gaza conduct. But that looks unlikely. A brief hardening towards Israel appears to have dissipated after recent tensions with Iran. In the wake of a damning EU review of Israel's human rights record in Gaza, Spanish Prime Minister Pedro Sanchez slammed his colleagues for not moving to suspend a trade deal with Israel despite what he called "the catastrophic situation of genocide." More than 55,000 Palestinians have been killed in the enclave over more than 18 months of Israeli bombardment, according to Hamas-run Gazan authorities. Israel vehemently denies accusations of genocide, maintaining that it is at war with the ruling militant Islamist group Hamas following a massive terror attack on Israeli territory in 2023. In a report distributed to the member states last week based on the findings and allegations of major international bodies, the European External Action Service found "indications" that Israel was breaching its duty to respect to human rights. The document, not public but made available to DW, highlighted possible indiscriminate attacks affecting the civilian population, Israel's blockade on food and medicine plus attacks on medical facilities as potential breaches. "There are indications that Israel would be in breach of its human rights obligations," the report concluded. Arriving at an EU summit in Brussels on Thursday, Sanchez said it was "more than obvious that Israel is violating Article 2 of the EU-Israel agreement." "We have had 18 sanctions packages against Russia for its aggression [in Ukraine], and Europe, with its double standards, is not capable of suspending an association agreement," Sanchez said. Spain and Ireland are isolated among the 27 EU states in openly calling for the suspension of the deal in full, a move that would require unanimity and has therefore never been a serious prospect. Greece, Germany, Hungary, Austria, and Bulgaria remain close allies of Israel. Berlin in particular has made its views clear, with Chancellor Friedrich Merz describing the move as "out of the question with the federal [German] government." Doing so would be a major commercial disruption, particularly for Israel, which buys a third of its goods from the EU. The accord, in force since 2000, covers everything from the two sides trading relationship – worth $50 billion each year for goods alone – up to political dialogue, and cooperation on research and technology. Another possibility, requiring only a qualified majority of 15 out of 27, would be the partial suspension of the deal, for example, its provisions on free trade or shutting Israel out of EU research funding programme Horizon. But multiple diplomatic sources told DW that the numbers weren't there either. Earlier in the week, EU foreign affairs chief Kaja Kallas officially presented the document to the member states for a first debate, already making clear there would be no immediate moves. "It is not intended to punish Israel, but to trigger concrete improvements for the people and the lives of people in Gaza," she said on Monday. "If the situation does not improve, then we can also discuss further measures and come back to this in July." On Thursday, EU leaders at the summit only "took note" of the report in their joint statement, making no reference to potential rights breaches, and said ministers should revisit the topic next month. At the same time, the 27 leaders deplored the "dire humanitarian situation in Gaza, the unacceptable number of civilian casualties and the levels of starvation." Spain has also been calling for an EU embargo on the sale of arms to Israel, with Germany one of the country's major suppliers, as well as more sanctions. However, Berlin recently reaffirmed it would keep selling Israel weapons, and without Germany on board, the move wouldn't have much impact. A few other countries, including Belgium, France and Sweden, have supported imposing additional EU sanctions on Israel, but these too require unanimity. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Echoing Sanchez, Irish leader Michael Martin said he would tell his colleagues at the summit that "the people of Europe find it incomprehensible that Europe does not seem to be in a position to put pressure on Israel." According to Lisa Musiol of conflict resolution think tank Crisis Group, maximum pressure would entail an arms embargo, large-scale sanctions against members of the government or a full suspension of the Association Agreement. "But almost no European leader speaks about such measures," Musiol told DW in a written statement. "There is probably no foreign policy topic within the EU where member states are so divided." Last month, it looked for a brief moment like the EU was indeed collectively hardening its stance. The Dutch proposed the review of the Association Agreement, and the move was greenlit by a majority of EU states on May 20. This came shortly after France, Britain and Canada issued a rare joint statement condemning Israel's latest offensive in Gaza and described its restrictions on aid as being "wholly disproportionate," and possibly in breach of international humanitarian law. There was a distinctive feeling that policy could be shifting. Musiol of Crisis Group said that that window seemed now to have closed. "It seems that after the recent escalation between Israel and Iran, many member states have fallen into their old positions," she said. "Even those member states that have traditionally been strong supporters of Israel but had started to be more outspoken or critical, such as Germany or Italy, have changed their tone."
