Finance news. Credit: Pavel Danilyuk, Pexels
Inflation slows
Spanish inflation eased at the end of 2025, offering modest relief. The Consumer Price Index fell to 2.9 per cent in December, mainly due to lower petrol and diesel prices and favourable year-on-year comparisons. Leisure and culture prices also rose less than a year earlier, while food prices pushed inflation higher. Average inflation for 2025 stood at 2.7 per cent marginally below 2024, supporting a recovery in purchasing power and setting the benchmark for 2026 pension rises. Core inflation averaged 2.3 per cent but rose to 2.6 per cent in December, remaining broadly in line with ECB targets.
Airbus arms deal
Airbus (AIR) has secured a contract under Spain’s special modernisation programmes (PEM) to manufacture 18 C295 military transport aircraft, replacing older CN235 and C212 models. The contract, supported by a €1.04 billion loan and an additional €520 million for teaching technologies, will see deliveries for training and transport from 2026–2028, and paratrooper and cargo operations from 2030–2032. PEM also benefits INDRA (IDR) and Navantia, strengthening Spain’s defence sector.
BBB rating intact
Banc Sabadell’s credit rating has been downgraded due to divestment delays and weakening performance. Its BBB rating remains intact and the expected impact is minimal. The company remains active in asset rotation, having divested €2.4bn since July 2024. Ongoing plans and additions will preserve its investment grade rating.
Self-employment strain
The ATA expects 2026 to see 25,000–27,000 more self-employed workers, a 0.7–0.8 per cent increase, though 30 per cent ended 2025 with losses due to higher taxes. ATA estimate Self-employed workers spend 200 hours yearly on bureaucracy, costing €10 billion.
Employment growth in 2025 was concentrated in large firms, while small businesses and traditional sectors declined. ATA forecasts total employment growth of 0.9–1.1 per cent (250,000 jobs) and unemployment dropping to 10 per cent if small businesses receive direct support. GDP is projected to grow 2–2.2 per cent with inflation around 2.2–2.3 per cent.
Kraken sale
British company, Octopus Energy, has sold a $1bn stake in its Kraken software arm, valuing it at $8.65bn and paving the way for a possible IPO. Despite 10 per cent revenue growth to £13.7bn, Octopus posted a £260m pre-tax loss, citing higher costs and lower energy demand.
Pollution fee
In 2026, Spanish gas, electricity, and oil companies must contribute €1.871 billion to the National Energy Efficiency Fund (FNEE), an 83 per cent increase from 2025. Repsol (€440M), Endesa (€223M), Iberdrola (€163M), and Naturgy (€161M) represent 52 per cent of this. Created in 2014, the FNEE funds energy-saving initiatives, with fees based on polluting companies’ sales. Up to 92 per cent can be offset via Energy Saving Certificates, alongside renewable energy subsidies. Consultation ends 16 January 2026.
Mobilising savings
Spain has launched a consultation on EU’s SIA and the “Finance Europe” label, aiming to mobilize Spain’s €1 trillion in deposits. Modelled on Sweden’s ISK and Italy’s PIRs, the SIA would allow tax-efficient investment in stocks and bonds to fund key programs, with each country defining its own rules.
Market under pressure
2025 marked record sales (715,000) yet Spain’s housing market is under pressure as prices per square meter exceed €2,156. In 2026, property prices are expected to rise 6–8 per cent, while rents could climb up to 12 per cent, impacting households by around €1,735 annually. Supply shortages persist due to limited land and slow construction. New construction will add only 420,000 homes over three years, far below the 700,000-home deficit, fueling demand-driven price growth and investor interest.
Caixa payment plans
CaixaBank introduces interest-free instalment payments on Facilitea, splitting purchases into four payments. Clients with domiciled income can receive a 5 per cent cashback, or up to 10 per cent on select products. The initiative strengthens CaixaBank’s strategic focus on Facilitea, enhancing a seamless, digital shopping experience.
Supermarket expansion
Supermarket Income REIT (SUPR) has acquired three UK supermarkets for £97.6 million, targeting Tesco Aylesbury (£56.3m, 5.2% yield), Sainsbury’s Sale (£33.8m, 5.9% yield), and Waitrose Frimley (£7.6m, 6.2% yield). All have long trading histories, triple-net leases with RPI/CPI-linked rent reviews, and unexpired terms of 11–16 years. Funded via existing debt, the portfolio’s pro-forma LTV is 43%, WAULT 12 years, and 75% of tenants are investment grade, supporting SUPR’s growth and earnings strategy.
Eclipse sale agreement
Empire Metals has entered a conditional agreement to sell its 75 per cent interest in the Eclipse Mining Lease near Kalgoorlie for A$750,000. The three-month due diligence period allows the purchaser to complete technical assessments. The sale supports Empire’s strategy to focus resources on the Pitfield Titanium Project.
Digital banking dominates
Digital banking remains dominant in Spain with 80.8 per cent of internet users using mobile banking, exceeding EU’s 63.9 per cent average. These figures are set to rise ,as online banking becomes the standard with 94.9 per cent forecasted by 2030.
Online banking has become a key part of customers routine’s, 95 per cent have banking apps installed, 43 per cent check it daily and 42 percent access the apps multiple times a week.
Digital features like automatic alerts and income and expense visualisation are key reasons for online banking’s success, not to mention the ease and efficiency it offers users. Customers expect AI will improve financial management in 2026.
Sustainable finance
In 2025, BBVA advanced sustainable finance across energy, textiles, agribusiness, housing, and hard-to-abate sectors, offering sustainability-linked loans, bonds, and efficiency financing. The bank supported social-impact initiatives and biodiversity projects, aiming to mobilise €700 billion in sustainable business by 2029 while progressing toward net-zero emissions by 2050 with sector-specific targets.
Billionaire Beyoncé
Forbes has declared Beyoncé a billionaire, after previously estimating her net-worth at $800m (£593m). She joins an elite group as the fifth musician to join Forbes’s list of world’s wealthiest people. The list includes her husband, Jay-Z who has an estimated net worth of $2.5bn (£1.85bn).
Elder workforce
In 2025, Spain’s unemployment rate for people over 55 reached 9.8 per cent, 0.4 percentage points higher than for over-25s, reversing historical trends of lower older-worker unemployment. Long-term unemployment affects 57.9 per cent of this group. While their average salary is €30,038, new older employees earn only €19,558, underscoring significant employability challenges.
Imports reduce inflation
UK economists expect cheaper Chinese imports, which reached over $1tn for the first time, to reduce UK inflation as US imports are diverted due to Trumps tariffs. Chinese exports rose 9 per cent in the UK, US exports fell 29 per cent. China is the UK’s largest market for imports with £70bn shipped by June.
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