🫠 Sánchez's right-hand man goes to jail
Plus: Madrid's crap sunshades, Spain's stuck trains, and a ticket scalping crackdown.
Madrid | Issue #109
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We knew nothing — really!
🚔 PM Sánchez holds on for dear life as his former #3 is sent to jail
Why Sánchez hates Mondays. Santos Cerdán — until recently Prime Minister Pedro Sánchez’s right-hand man — was sent to jail without bail on Monday by Spain’s Supreme Court. Judge Leopoldo Puente said there’s “extraordinarily strong evidence” that Cerdán masterminded a criminal network inside the Spanish government — and personally collected the bribes.
Yes, it’s that serious.
The accusation. Puente accused Cerdán of setting up a kickback scheme around public works contracts, using his position as PSOE Secretary of Organization (the #3 of Sánchez’s party) to install loyalists in key posts.
One of them? His protégé Koldo García. You might remember him from the Koldo Case — the ever-expanding corruption scandal that started with dodgy COVID contracts, spiraled into a fuel tax scam, and now points to high-level political payoffs.
This didn’t seem dire for Sánchez at first. Koldo was just some shady advisor to former Transport Minister José Luis Ábalos (another PSOE #3 and close Sánchez ally who got quietly axed as the scandal spread toward him), who got arrested for allegedly taking bribes tied to COVID mask contracts. But then Koldo’s business partner got nailed for fraud and… started talking. A lot. About everyone. Including Cerdán.
And then came the tapes. Turns out Koldo had been recording conversations. For years. Three weeks ago, the audios dropped, and made everyone on them sound corrupt, stupid, or both.
That doesn’t sound good. One of the taped conversations (which include chatter about €620,000 in alleged bribes, shady contracts, and possible ballot-stuffing in the primaries that brought Sánchez to power) features Koldo casually bringing up commissions with Cerdán, and Cerdán replying: “Let’s not discuss this here.” 😉
Who, me? Cerdán denied everything and said it was all part of a political persecution. He said that the recordings may have been manipulated, and that he hadn’t taken “a single euro.”
The judge wasn’t convinced. Neither was anyone else. Cerdán? In jail. And Sánchez? Fighting for his political life.
Out to get me for helping Pedro. In court, Cerdán described himself as the architect behind Sánchez’s rise to power in 2018 — something that didn’t go over well with the party. It kinda makes it sound like the call (or corruption) is coming from inside the house.
Sad, yes, but we didn’t do this. Government spokesperson Pilar Alegría called Cerdán’s arrest “heartbreaking and disappointing,” but said there’s “no indication” of illegal PSOE party financing so far. (Note: Phrases like “no indication” and “at this time” are doing a lot of work these days because no one knows who will get implicated next.)
And you’re not the man behind the man. Alegría also slapped down Cerdán’s “I made Pedro” claim with a (kind of) fact-check: “The vote of 12 million citizens” made Sánchez prime minister. (Note #2: PSOE never got 12 million votes, but if you add up all the parties that backed Sánchez’s investiture, sure.)
Jail makes it worse. Cerdán’s arrest has shaken Spain’s governing coalition.
Junior partner. Second Deputy Prime Minister Yolanda Díaz, leader of junior partner Sumar, warned they’ll walk if there’s proof the PSOE benefited from illegal financing. But let’s be honest: Sumar’s polling so badly that unless someone drops a literal smoking gun on Díaz’s desk, they’re staying put.
Díaz said a bunch of words. She still believes Sánchez is not personally involved — but said he’d better move fast or risk becoming “part of the problem.” Whatever that means.
The other lefties. Far-left Podemos took a harder line. Ione Belarra accused the PSOE of returning to its “darkest chapters,” name-checking Filesa and GAL. But they’re not calling for elections either (because they know the right would win.)
And the PP? They’ve been feeling out PSOE-allied parties to see if they could find support to turf out Sánchez. No luck so far because of the same reasons we mentioned two weeks ago.
Survival. If elections happen now, PSOE and coalition partner Sumar get absolutely destroyed. A PP-Vox government is almost guaranteed — and no one wants the tighty far-righties in office. Hold on until 2027 and hope the world changes? Maybe! 🤷♀️
Money. 🤑 Sánchez has offered Catalan separatists Junts and ERC funding and power if they support him. With PP-Vox? They know they probably get res (that’s “nothing” in Catalan, FYI).
A prediction. As calls for elections get louder, expect PSOE officials to keep saying: “Just because all our friends are corrupt doesn’t mean we’re bad.” And then keep praying the next shoe doesn’t drop. Because somewhere in a court basement, there’s a stack of hard drives and a backlog of recordings from Koldo, Ábalos, and Cerdán that might say otherwise.
More news below. 👇👇
💬 Five things to discuss at dinner parties
1. 💸 Madrid put sunshades in the Puerta del Sol and pretty much everyone agrees they suck
Madrid’s Puerta del Sol — aka Km. 0, aka “take a selfie with the bear statue and grab a charger at the Apple Store” — has a problem. There is not a tree in sight, and as climate change worsens summers get hotter for unknown reasons, people compare it to walking inside an oven.
City Hall to the rescue. Melting like a Gremlin (Google it, kids!) isn’t great for tourism. So Mayor José Luis Martínez Almeida (PP) did what any summer-loving bureaucrat would do: he (and his government) set up a few toldos (aka sunshades) so people could hide from the punishing summer heat.
Bit slow, eh? After months of delays and scorching criticism (both figurative and literal), the sunshades finally went up and they are… sorta meh. Not only that, they come in at a hefty €1.5 million.
Ibiza prices. While the white fabric sails offer some needed relief from the merciless sun, the price popped eyes because the project was originally pegged at half a million.
But, but, but… The budget ballooned after a design flaw (eyeroll) forced the city to anchor the shades to the benches in the square. But it turns out the benches weren’t designed to hold anything but butts. So the city had to reinforce them with steel. That will be €1m extra, please!
Oh, and the sunshades are seasonal. So they’ll be taken down in the fall and reinstalled each spring - just in time for spontaneous combustion season.
Not convinced. This is the first time in 160 years that the Puerta del Sol gets artificial shade 🥳. But many residents and tourists aren’t sold. One local told El Diario that they are “expensive, late, and not particularly pretty”, and we kinda agree.
Not just urbanists, locals, and us think it sucks. Almeida’s political opponents also hate on it: leftish Más Madrid’s Rita Maestre accused the mayor of wasting €13m on a cement plaza wasteland and now throwing another €1.5m at “gaudy canopies that don’t provide shade.” (She’s not wrong.)
But the city government is not having any of this. Almeida says that the Puerta del Sol is now pedestrianized, accessible, and, for the first time in history, shaded.
Still, one question lingers: why not just plant trees? Because green + natural = good.
Historical preservation rules. Madrid’s delegate for public works, Paloma García Romero, says that Sol is a protected historic site, so no planting trees or installing permanent structures.
We tried. García Romero says this is why original proposals to plant nine trees were blocked by the Heritage Commission and even the anchoring “thumbtacks” on the structures had to pass multiple reviews (thus explaining the delays).
Look down. Oh, and the Sol metro station is underneath, so scarce soil.
Well, there’s that. So now Sol looks like a luxury car park with no cars - and a poor man’s Pikachu. But hey, at least it’s not car-choked like in the ‘60s.
2. 🎟️ New consumer bill comes for short flights, scalpers, and your “eco” shampoo
Spain’s Ministry of Consumption just dropped a bill that could change how you fly, shop, and score tickets to Bad Bunny. It’s called the Ley de Consumo Sostenible - because everything is sustainable now.
Presented by Minister Pablo Bustinduy and provisionally approved by the government, the law is designed to protect consumers and the climate. And it doesn’t hold back.
First up: short-haul flights. Ads for domestic flights will be banned if a cleaner alternative — like a train — is available that doesn’t take more than 2.5 hours longer. So, like, if the Madrid–Valencia train clocks in under 4 hours, you’ll see Renfe ads, not Ryanair ones.
Not a ban. Flights aren’t banned — just the ads. It’s all part of the EU’s slow march toward fossil fuel sobriety.
France has adopted similar measures, restricting flights between cities with rail connections under 2.5 hours. Spain goes a step further by targeting ads — because nothing says “Green Deal” like a marketing restriction.
Second: ticket resellers. StubHub and friends will be monitored, and reselling a ticket above the official price (adjusted for inflation) will be illegal — which, we hope, will translate into something good for all of us.
The Ministry will monitor resale websites and marketplaces where tickets are listed. This comes as bots and speculative resales have turned ticket-buying into a nightmare for pretty much everyone, while driving prices through the roof. (Hit us up if you have any Bad Bunny tickets).
The goal? The idea is to kill the profit motive and make live shows more equitable. Platforms violating the new pricing rule could be blocked altogether.
But there’s more! The bill also cracks down on planned obsolescence by making companies cover part of the repair costs after their products’ guarantees end; limits “fear-based” ads (like alarm firms that warn a squatter may occupy your house while you go to the supermarket); and bans vague “eco” product claims (“biodegradable”, we’re looking at you).
Next up for the bill: a public consultation phase before heading to Parliament.
3. 🚄 It’s so hot in Spain the trains gave up
Spain’s trains were great (until now). Spain’s high-speed train service has for years been one of the country’s calling cards, with fast and (more-or-less) economical access to most of the country’s major cities. But the last year or so? A shit show Problematic.
New drama. This week, during 2025’s First Summer Heat Wave™, the overhead power lines just… died. Around 8:30 p.m. Monday evening somewhere between Madrid and Toledo, the wires that keep the trains running gave up. Over the next 15 hours, 70 trains were delayed across the Madrid–Andalucía corridor.
Specifics. 318 unhappy people were stuck on one train in the España profunda until it got to Madrid at 10:15 a.m. Tuesday. One wrote: “What seemed like a simple trip has turned into a nightmare: we’ve been stuck for over 13 hours in the middle of a plain in Toledo, with no electricity, no bathrooms, unbearable heat, and surrounded by insects.” 🆘 The cherry on top? An 84-year-old woman had to be evacuated by ambulance.
Far from the first time. Trains marooned in the middle of nowhere and people stuck in stations has become a regular nightmare for Spain’s train operators.
Derailed. Just three weeks ago, a train derailed at the entrance to Madrid Chamartín station, cutting electricity to the trains and affecting 34,000 passengers.
Copper burglary. On May 4 (as we reported), the theft of copper wiring at five spots in Toledo on the Madrid-Sevilla line hit 10,700 passengers on 30 trains with hours-long delays or cancelation (Yes, basically the same place that lost power this week.)
Great Blackout. Just six days before the copper theft, the Great Spain Blackout stranded 35,000 train passengers.
What the heck’s going on? Basically, lots more passengers, not enough investment. Some 8.7m people rode the Madrid-Barcelona route in 2023, up from 4.4m in 2019. Madrid-Málaga? Up to 2.5m from 2m.
Busy stations, little money. As fellow Substacker Brendan Boyle of La Comunidad points out, new services Iryo and Ouigo are crowding the system: a steep drop in investment after the 2008 financial crisis pushed aging trains to cover more miles; and Madrid’s Chamartin last year saw 13.9m passengers, passing a mark it wasn’t supposed to hit until 2040.
At least train delays aren’t deadly. But the heat is. 330 people died from heat-related causes in Spain last month. That’s the third deadliest June on record, behind only 2022 and 2017. So, yes, it is hot enough for us.
4. 🏦 BBVA-Sabadell may just be a bank merger but it’s getting hot 🔥
Just last week, Spain gave BBVA the green light to buy Sabadell. But told them they’d have to wait three to five years before consummating the deal. (Yes, they used the word "merge," but we all know what they meant.)
This wasn’t about business. Spain’s competition watchdog had already approved the deal. The problem? Politics. Sabadell is Catalan, BBVA is basically a Madrid power bank, and PM Pedro Sánchez didn’t want to upset the nationalist parties keeping him in power. So he launched a Eurovision-style “public consultation” and then slapped on new conditions that tanked the deal’s projected returns.
Pretty hot, right? (At least for a bank merger.) But this week it got hotter!
Sánchez and friends may have thought they’d killed the merger. But BBVA didn’t flinch. On Monday, Chair Carlos Torres Vila said the bank would push forward anyway - calling it a “unique opportunity to build one of the most competitive and innovative banks in Europe.” (Translation: Can’t stop me, Pedro.)
So why didn’t they just walk away? Sure, the new conditions cut the deal’s expected returns from 20% to 13%. But that’s still money. Torres Vila says the deal would boost lending by €5 billion a year and create “significant value” for shareholders.
Enter: Weak Pedro. El Mundo reports BBVA has support from heavyweight shareholders like BlackRock, Vanguard, and Norges Bank - who think Sánchez might not be around long enough to keep blocking the merger and a new government could soften the conditions. Also in BBVA’s back pocket: The option to sue.
Plot twist! Sabadell fights back - with a dividend bomb. Sabadell announced Tuesday that it had sold its U.K. arm, TSB, to rival Santander for €3.1bn.
So? Sabadell plans to hand most of that cash to shareholders - hoping they’ll prefer keeping the windfall to sharing it with BBVA if the merger goes through. It’s a classic poison pill strategy: raise the payout to shareholders, raise the price BBVA has to offer. Think of Sabadell as a porcupine: you still want to hug me with my spines out?
A stock guy speaks. The deal “seems to be a last major effort to convince Sabadell’s shareholders to not accept BBVA’s offer during the upcoming take-up period,” RBC analyst Pablo de la Torre wrote in a note about the deal.
What’s next? Sabadell’s shareholders vote in August, and BBVA still has to update its offer. Stay tuned for the next chapter of As the Bank Merger Turns. This soap’s just getting good.
5. 🇪🇸 Is Spain really richer than Japan today?
Depends who you listen to. According to the IMF, yes. At least on paper. (h/t to El Economista for pointing this out.)
It happened in 2024. Spain’s GDP per capita - the average output per person - officially overtook Japan’s in 2024: $35,092 vs. $32,498. A country known (to people who don’t really know it) for sangría and siestas is now, statistically, “richer” than the land of robots, underwear vending machines, and no immigrants (more on that last bit in a second).
Vibe shift. But the headline masks something much bigger: a shift in the global economy away from goods (cars, tech, electronics) and toward services (tourism, hospitality, “experiences”). Spain thrives in the latter. Japan… not so much.
From goods to good vibes 🍷. There’s been a big shift as China basically kills the classic manufacturing countries with its low, low costs (and therefore prices).
Industrial machine. Japan was seen for decades as the world’s ultimate industrial machine. But that machine is stalling. The country is shrinking — by about 5 million people in 15 years — and aging faster than anyone else. Growth is flat, inflation is rising, and the once-infallible public debt model now looks shaky. (Plus it’s fighting with Trump about auto exports, but that’s for another day.)
Experience the service. Meanwhile, Spain has become a services juggernaut. Tourism is booming, immigration is pushing the population toward 50 million, and more people are working than ever. In 2012, Japan had a $21,000 lead in GDP per capita. Twelve years later, Spain pulled ahead.
The reason? The world economy has changed. The average Brit or American is more willing to splurge on a rooftop cocktail in Madrid than a new tablet. That shift - from goods to experiences - has supercharged economies like Spain’s.
Booming share. Between 1970 and 2021, the service sector’s share of global GDP rose from 53% to 67%, the WTO says. And here? Services now make up over 70% of Spanish GDP.
But is Spain actually richer? 📈 Not necessarily. The GDP jump is partly driven by demographics: more working people, many of them migrants, lifting overall output. That doesn’t mean the average Spaniard feels richer — ask the next barman you order a caña from — just that there are more people generating income.
It’s how you look. Still, in a world where industrial giants like Japan, Germany, and South Korea are losing ground to lifestyle-heavy service economies, the symbolic value is real.
And we’ll keep looking good. In fact, the IMF predicts Spain will stay ahead of Japan in GDP per capita through 2030. The sorpasso might be here to stay.
We’ll take it. So yes, Spain is “richer” than Japan — at least until someone invents a robot that can pour a proper vermouth and tell you where to find the best tortilla (we’d tell you, but we’d have to kill you).
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