đšđł This Week in Spain: SĂĄnchez Courts China
Plus: Podemos' comeback efforts and King Emeritus JC1 goes on a suing spree.
Madrid | Issue #97
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Cutting your own throat?
đȘïž PM Pedro SĂĄnchez Dives Into Trump Tariff Vortex
Spanish PM Pedro SĂĄnchez sure has fabulous timing this week. When he announced back on March 20 that he would be visiting China and Vietnam in April, little did he know his landing this week would occur days after U.S. President Donald Trump announced eye-popping tariffs on both nationsâand just as China retaliated against the Bad Orange Man with massive duties of its own.
And wow what a landing it was! Trumpâs Treasury Secretary Scott Bessent was such a fan of what SĂĄnchez said about moving closer to China he described it as âcutting your own throat.â đ± But more on that in a second!
High expectations. Spain may not be on the podium of Biggest EU Economies (that would be Germany, France and Italy, natch), but SĂĄnchezâs visit with Chinaâs President Xi Jinping at such a cray-cray tense moment raises expectations that he is acting as the EUâs de facto representative to the worldâs #2 economyâand the US presidentâs biggest foe.
First messages. After landing in Vietnam, which could be seen as sort of a dry run for his Friday visit with Xi, SĂĄnchez spoke about free trade (Good!) and tariffs (Bad!) in a way unlikely to offend anyone save Trump: "No one wins with trade wars. Every country loses, especially workers and the middle class."
But is he an EU man? European Commission President Ursula von der Leyenâs spokeswoman acknowledged that she and SĂĄnchez had coordinated the message to Xi, while unnamed government sources (Garganta Profunda?) told El Confidencial that SĂĄnchez had approval to speak to Xi in the EUâs name.
Two masters. Having national leaders represent their countries and the EU simultaneously can cause friction, of course. On Sanchezâs trip to Beijing last September, he broke ranks with the rest of the EU and urged it to âreconsiderâ its plan to impose more tariffs on China-made EVs. While that irritated Brussels, it may have helped Spain attract Chinese money (See: December announcement of part-Chinese âŹ4.1bn investment in an EV battery plant in Zaragoza) and saved Spainâs pork exporters from Chinese tariffs.
More in agreement. While the EU is still wary of Chinaâs tendency to dump cheap, state-subsidized products that kill countriesâ domestic industries, in light of the Donald it is coming around to SĂĄnchezâs more dovish take on Beijing.
Cutting your own throat. Before his arrival in Vietnam, SĂĄnchez told reporters traveling with him that he was pushing for the EU to pivot toward China. And that, well, didnât land well in Trumpland. Hearing of Sanchezâs remarks, U.S. Treasury Secretary Bessent warned the EU against making such a pivot: âThat would be cutting your own throat,â he said at a bankers event in Washington.
Back in đȘđž. For obvious reasons (as in, Trump tariffs on the EU would hurt Spain), SĂĄnchez announced last week that Spain would provide âŹ14.1bn in aid to ease the impact, including âŹ6bn for business affected by the tariffs.
Spanish exports. Spain exported about âŹ18.2bn worth of stuff to the U.S. last year, led by machinery, oils (extra virgin!), drugs and chemicals. The CĂĄmara de Comercio de España (Spainâs Chamber of Commerce) predicts a 14.3% drop in exports, or âŹ2.6bn, cutting GDP by 0.21%. So not bad, but not good either.
Everyoneâs on board with getting some money flowing to the affected businesses and employees. Especially with Spainâs Central Bank planning to cut its GDP growth projections, right? Well, not so fast! We donât, like, agree on things here in Spain. Not even important things.
You knew there would be problems. SĂĄnchezâs people actually shared the planned decree with the main opposition party, the center-right PP, before passing it, which they never do (you could say the PP and SĂĄnchezâs PSOE socialists arenât overwhelmed by mutual trust).
PP offered changes. The party led by Alberto Nuñez FeijĂło suggested 10 changes, some related to the problem at hand (they wanted more grants and fewer loans for affected firms) and others longer term (adjust income tax brackets for inflation, which hasnât been done in over 10 years).
Unhappy and BOOM! The PP said the PSOE hadnât included any of its suggestions, then only an âinsufficientâ amount, but the PP blew up negotiations when âsourcesâ reported that the Catalan right-leaning separatists in Junts were claiming Catalonia was going to get 25% of the aid. Turns out that the aid is for businesses that export to the U.S. and it seems about a quarter are in Catalonia (which is about 19% of Spainâs GDP). SoâŠno biggee?
Help will probably come. In the end the PP will likely vote with the PSOE to make the decree law. To vote against the aidâalongside far-right Vox, which has supported Trump to the bafflement of its own votersâwould look terrible. But so would being too close to SĂĄnchez. So letâs haveâŠa little theatricalized fight first! Now, all together: This is why we canât have nice things.
But letâs get to the fun stuff: insults. While SĂĄnchez has been critical but largely calm when referring to Trump, some former high-ranking PSOE leadersâand Spanish peopleâhave been less restrained.
Previous socialist PMs. Former Prime Minister Felipe GonzĂĄlez didnât hold back, calling Trump âa bully and an idiot,â while fellow former PSOE PM JosĂ© Luis RodrĂguez Zapatero said his tariffs âaccelerate the decline of the American empire.â Hey, theyâre out of office so they can say what they really feel!
Oh, and current PSOE parliamentary spokesperson Patxi LĂłpez? He called Trump âridiculousâ.
Everyday Spaniards too. A recent El PaĂs/Cadena SER poll revealed growing distrust of Spanish people toward the U.S., especially since Trumpâs return to the White House.
Russia #1! While Russia is still seen as the top threat to global peace (78.3%), the U.S. follows closely behind at 70.8% (Weâre #2!), a significant drop in trust for a country thatâs long been considered the guardian of Western ideals. Thatâd be bad.
Gets worse. Whatâs worse, 57.4% of Spaniards believe it is âvery or quite likelyâ that the U.S. could invade or seize other countries, more than those who believe Russia would do the same to the EU. (Looking at you, Greenland.)
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đŹ Five things to discuss at dinner parties this week
1.đ€Žđ» Juan Carlos Iâs suing spree turns to his former lover
Lawsuits galore. It started last week with a lawsuit against Miguel Ăngel Revilla, the outspoken former president of Cantabria known for his populist rhetoric and media-friendly persona.
Revilla had publicly mocked the King Emeritus Juan Carlos I several times, calling him everything from a âfreeloaderâ to a âwalking scandalâ and the former monarch finally decided heâd had enough and filed a lawsuit against him, asking âŹ50,000 in damages for alleged defamation.
But that was last week. Now, JC1 (who lives in self-imposed exile in Abu Dhabi) is targeting a much more familiar name: Corinna Larsen, his former lover and the woman at the center of one of the biggest scandals in Spanish royal history.
Targets. Juan Carlos has filed a lawsuit in Switzerland against Larsen and Dante Canonica, the Swiss lawyer who once helped manage his offshore financial dealings.
Infamous foundation. Canonica was the architect of the now-infamous Lucum Foundation, which received a $100 million âgiftâ from Saudi Arabiaâ$65 million of which was apparently later transferred to Larsen.
âGiftâ or âholdâ? Larsen has long claimed it was a personal gift from JC1, but he now says she was just supposed to âholdâ the money (as one does) and has refused to return it. This financial âdisagreementâ is why they stopped talking to each other.
History lesson. Their romantic relationship reportedly began in the early 2000s, when they met through mutual friends in the British aristocracy. It quickly escalated, with JC1 allegedly proposing to her multiple times (there are Netflix and HBO Max documentaries about all this that we totally recommend). But once money entered the equation, what began as a glamorous love story quickly turned sour.
Harassment suit. Larsen sued JC1 in the U.K., accusing him of harassment and defamation after she refused to return the funds. She said she was stalked and harassed by Spanish intelligence on his orders.
Dismissal, but⊠The British courts dismissed the case due to jurisdictional limits, but the damage to Juan Carlos Iâs image had already been done.
More lawsuits coming. With the 50th anniversary of his accession to the throne approaching, itâs clear the emeritus king is on a reputational clean-up tour.
Cloud over him. Though he was never formally charged of anything inside Spain due to constitutional immunity, JC1âs image has taken a significant hit in recent years, with Spaniards seeing him as a symbol of excess and financial scandal.
Whoâs next? Itâs not clear these lawsuits will help his legacy, but rumor has it there are more suits on the way (weâre praying for you, Barbara Rey).
2. đ€Ą Podemos: Spainâs far-left clown car week
If the far left (or far right, for that matter) does anything super efficiently, itâs blow itself up with purity tests. And this week? Spainâs far left went in deep on purity.
Beginnings. The once-important far-left Podemos party, born out of the post-2008 financial crisis student protests, chose its PM candidate for the next elections, even though there might not be elections for 2+ years. Because, prepared = good, we suppose. Their choice? Irene Montero.
Not just any choice. Not only is Montero the partner of Podemos founder Pablo Iglesias (see below!), sheâs also the former Equality Minister who ginned up the absolute clusterf*ck of the Only Yes Means Yes rape law that (counterintuitively) led to the release of hundreds of sexual offenders. Whoops!
Not besties. Montero was then tossed from domestic Spanish politics by current far-leftish leader Yolanda DĂaz of Sumar, who decided in the last elections that Montero was too toxic to run locally (she ended up as an MEP in Brussels). SoâŠIrene and Yolanda? When they kissed on the campaign trail, it brought up the clichĂ© that women kissing is like boxers touching gloves.
Revenge. After being named candidate, Montero rejected running with Sumar in the next elections, suggesting that they werenât left-wing because they wanted to spend Spanish budget money on defense to protect against the off chance of Russian aggression (Oh, the horror đ±).
Snide invitation. Not only that, she invited DĂazâs party to just dissolve, with the correctly pure lefty pacifist bits joining Podemos and the dirty moderates joining Pedro SĂĄnchezâs PSOE socialists. Oh, and she dissed Sumar as powerless as PSOEâs coalition partner, saying, âIn the Government, only the PSOE rules."
Pablo speaks. Partner Iglesias chimed in, calling DĂaz, âThe last person who would be electorally competitive.â He also said, âSumar is politically dead.â
And that picture! If that werenât bad enough, DĂaz allowed herself to appear not only attending an event with Spainâs royal family but even smiling in a picture with Spainâs King Felipe VI and Queen Letizia. And if you know anything as a member of Spainâs left, you know you have to frown around anything royal.
Sumar responds. Weâre not entirely sure what she means, but we like how dismissive Sumar rep (and Health Minister) MĂłnica GarcĂa was when speaking about Podemosâs purity tests: âIn 2021, I told Mr. Iglesias that politics was not a Netflix movie, and now I tell both of you, Mr. Iglesias and Mrs. Montero, that this is not a ball pit either.â đ€·
So there you have it! DĂaz = Not pure, bad and meaningless.
3. â Catalan economist to Trump: Thatâs not what I wrote
Most people would be happy to be name-checked by the most powerful man in the world. But not if you're Pau Pujolas. And the man in question is Donald J. Trump.
Didnât see that one coming. The Catalan economistâwho currently teaches at McMaster University in Canadaâgot a surprise ego boost last week, kinda: an academic paper of his, written with co-author Jack Rossbach, appeared in the White Houseâs justification for Trumpâs latest round of trade tariffs. (Like we said, kinda.)
Imagine you are Pujolas. First, cue adrenaline. Then confusion. Then sheer horror.
So, hereâs what went down. When Pau met Donald.
The research. Pujolas and Rossbachâs 2024 preprint, titled Trade Wars with Trade Deficits, explores who wins in a tariff battle when one country (say, the U.S.) imports far more than it exports.
The model. Built with supercomputers and 2014 data (as in, pre-Trump tariff drama), it showed that under very specific conditions, a country with a trade deficit could benefit from small, strategic tariffs.
Slightly different situation. Those tariffs? 10â15%. Trumpâs latest ones? Not even in the same galaxy.
Like, really different. Pujolas and Rossbachâs paper is a controlled lab experiment. Trumpâs trade policy is a wrecking ball with a flag on it.
Donât let facts get in the way. Still, that didnât stop Trumpâs White House from citing the paperâtwiceâas evidence that going full-MAGA on global trade would somehow âboost economic outcomesâ and âinflict enormous lossesâ on exporting nations. Sound familiar?
Pujolasâs reaction to this? A mix of bafflement and deadpan academic shade: âThe formula and tables Trump used as if he were Moses have nothing to do with my article.â
A few things the paper doesnât say. 1ïžâŁ That the U.S. should slap tariffs on the EU (makes zero sense given the small deficit). 2ïžâŁ That Trumpâs 2018 tariffs were âoptimalâ (they werenât). 3ïžâŁ That economic models can account for presidential fantasies about annexing Greenland (joking).
Short version. Trump used a Catalan economistâs careful, conditional analysis to justify a policy that does the exact opposite of what the paper recommends. đ
The lesson. Next time you write about trade wars, make sure your conclusions canât be turned into campaign slogans by someone who thinks Canada should be the 51st state. âThere's a huge gap between my study and what the White House is doing,â Pujolas told El PaĂs. âIt's an outrage; they're causing a recession.â
4. đ» Podemos founder and former deputy PM crowdfunds his bar because Spain Is Different
Most politicians hit the speaker circuit when they leave office. But when Podemos co-founder and former Deputy PM Pablo Iglesias left the government, he opened a bar in LavapiĂ©sâand now he wants you to help him move it to a bigger venue.
The name? Taberna Garibaldi. The mission? âAn antifascist space of freedom.â The method? A crowdfunding campaign. Because apparently being a former Deputy PM of Spain doesnât pay what it used to. (Or maybe heâs cheap.)
Three guys walk into open a bar. Iglesias, a poet, and a singer-songwriter (of course) opened the taberna last year. Since then, itâs hosted book launches, protest poetry, and the occasional indie concert. A kind of ministry of culture with more alcohol and fewer microphones thrown across rooms. (Though Iglesias is not against throwing a mic when he doesnât like its ownerâs questions.)
Cancelled presentation. The city of Madridâled by Mayor JosĂ© Luis MartĂnez-Almeida of the center-right PPâdenied the permit for the launch of Iglesiasâs latest book (Enemigos Intimos) at a public venue in Vallecas. So he called it an âattack on the freedom of speechâ and moved the book launch to Garibaldi. And then decided the bar was âtoo small.â Cue the fundraising push.
So what does he want? The goal is a cool âŹ146,996. And that breaks down to: 1ïžâŁ âŹ120,000 for a new bar license; 2ïžâŁ âŹ17,996 for setting up the new space; and 3ïžâŁ âŹ9,000 for âminor reformsâ (we assume this includes shelves for unbought copies of Enemigos intimos).
And what do you get? Pablo treats his friends right (we think). They get for: 1ïžâŁ âŹ25: a thank-you email; 2ïžâŁ âŹ50: a photo of the founders waving; 3ïžâŁ âŹ150: a custom video; and 4ïžâŁ âŹ250: a song. (Note: weâre not sure whoâs singing. We hope itâs not Pablo.)
Generous folks. At last check, over 610 people have chipped in more than âŹ25,000. Some out of solidarity. Others for the lolz. A few, presumably, just really want that song.
Whatâs the vibe of the joint anyway? Half political revival tent, half neighborhood haunt. Iglesias says itâs become a âreference spaceâ for the leftâwhere artists, activists, and probably at least one guy with a tote bag full of Lenin zines drop in for vermut and vibes.
There is irony. A man once one heartbeat from the Moncloa now passing the digital collection plate to buy a liquor license.
Hey, this is Spain. Political afterlives are weird, every block has three bars, and ideology needs a taproom. Just donât be surprised if Pedro SĂĄnchez opens a wine bar next: Bar Handsome.
5. đ Could EVs be banned from Madrid parking lots?
A tragic fire in an underground garage in AlcorcĂłn has ignited a heated debate in Madrid: should electric vehicles (EVs) be banned from parking lots?
The Incident. On April 2, 2025, a fire started in a residential garage in the Madrid suburb of AlcorcĂłn. The blaze began when a man driving an electric Porsche Taycan accidentally accelerated and collided with a parked car, which led to a battery fire.
Deaths. The fire was so destructive that it claimed the lives of two firefighters and injured many others (one in critical condition).
Worries. The incident has raised concerns about the safety of parking EVs in enclosed spaces. Some private parking facilities in Madrid have already taken measures. A garage near Puerta del Sol has posted signs banning 100% electric vehicles from entering, citing fire risks.
Official Response. Madridâs Mayor, JosĂ© Luis MartĂnez-Almeida, has called for a thorough investigation to understand the frequency and causes of such incidents.
Previous studies say rare. So far, studies from countries with higher EV adoption rates (like the U.S. and Scandinavia) suggest that EVs are less likely to catch fire than combustion engine cars.
But when they happen⊠The issue is that when EV fires take place they are not that simple to put out: they need constant cooling and thereâs a risk of re-ignition.
Far right chimes in. Back in February, Vox spokesperson Javier Ortega Smith labeled EVs as âticking time bombsâ imposed by âglobalist agendasâ (weâre not sure how Elon Musk would feel about that comment). So thereâs that.
Results soon. The city is waiting for the results of investigations into the AlcorcĂłn fire. Legally, private parking operators may have the right to restrict EV access if itâs justified by safety concerns.
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