Spain: March 29 Must-Know News

Headlines

Government Reshuffle: Cuerpo and España take office following Montero's departure

• What happened: María Jesús Montero has stepped down from the government to run as a candidate in Andalusia. Carlos Cuerpo has been promoted to First Vice President, and Arcadi España, the former Valencian regional finance minister, has been appointed as the new Minister of Finance. The official handover took place at the Ministry of Finance.
• Why it matters: This shift reorganizes the government’s hierarchy during a critical period of budget negotiations and geopolitical economic pressure. The PP has dismissed the move as purely cosmetic, stating that "the only change Spaniards actually want is a new Prime Minister."

1 sources

elpais.com

elpais.com

Sánchez announces Basque collaboration board for airport management

• What happened: During political sessions on March 27, Prime Minister Pedro Sánchez announced the creation of a specialized body to allow the Basque Country to collaborate in the management of its three airports.
• Why it matters: This measure is part of agreements made with the government's Basque partners and has reignited the debate surrounding the decentralization of strategic infrastructure in Spain.

Bank of Spain warning: Inflation could hit 5.9% in 2027 if war continues

• What happened: The Bank of Spain released its latest macroeconomic projections, warning that inflation could soar to 5.9% by 2027 if the conflict in the Middle East persists—particularly due to its impact on oil prices and the Strait of Hormuz.
• Why it matters: While the institution is keeping its 2.3% GDP growth forecast for 2026 for now, the medium-term outlook has darkened considerably, posing risks for families, businesses, and investors.

Wall Street falls as tensions rise in the Strait of Hormuz

• What happened: Wall Street finished Friday in the red, with the Nasdaq dropping 2.15%. The Mexican Stock Exchange (BMV) also saw a decline, though it managed a 3.98% gain for the week.
• Why it matters: Escalating geopolitical tensions in the Strait of Hormuz remain the main source of uncertainty for international markets, pushing crude oil prices up and putting downward pressure on global stock indices.

IBEX 35 drops below 17,000 points; Enagás jumps 14%

• What happened: The Spanish stock market fell 1.4% on Friday, breaking below the 17,000-point mark mid-session as most stocks saw losses. Enagás was the exception, surging 14%.
• Why it matters: The IBEX is feeling the direct impact of high oil prices and geopolitical uncertainty. The rally in Enagás—a strategic gas company—reflects investor interest amid potential shifts in European energy routes.

Business & Economy

Brent crude tops $105 while Euribor remains under pressure

According to market analysis from March 27, the price of a barrel of Brent crude crossed the $105 barrier, fueled by tensions in the Strait of Hormuz. The IBEX 35’s fall below 17,000 points reflects widespread anxiety among European investors.

OECD trims Spain’s 2026 growth forecast

The international organization has lowered its growth estimate for the Spanish economy by one-tenth of a percentage point, citing the Middle East conflict as the primary external risk factor. While Spain started with a relatively solid position, the global environment is becoming more complicated.

World News

Euthanasia law debate in Spain reignited by Noelia Castillo case

The case of Noelia Castillo—a young woman who remained paralyzed for 601 days while waiting to receive euthanasia—has reopened the debate in Spain regarding the limits of the law and the role of the state. BBC Mundo highlighted the story, questioning why her suffering was allowed to continue for so long.

Colombia records new earthquakes on March 28

The Colombian Geological Service (SGC) reported seismic activity in Colombia throughout Saturday, March 28. Details regarding the epicenter and magnitude were...