A British trade envoy has voiced alarm as Spanish Prime Minister Pedro Sánchez clings to power amid a series of scandals that threaten his government's survival, putting UK business interests at risk. The political turmoil in Madrid, the envoy warned, could derail key trade deals and further unsettle a European economy already battered by inflation and energy costs.
Speaking on condition of anonymity, the envoy described the situation as "deeply concerning" for British companies that have invested heavily in Spain's renewable energy, infrastructure, and financial sectors. "We need stability to trade, and right now Spain is a kettle about to boil over," they said.
Sánchez, whose Socialist party has governed since 2018, faces mounting allegations of corruption and cronyism, including a probe into his wife's business dealings and a scandal over his government's handling of a terror attack. Despite calls to resign from opposition parties and some within his own coalition, Sánchez has refused to step down, insisting he will "fight until the end."
The UK-Spain trade relationship is worth £50 billion annually, with over 400 British companies operating in Spain. "This isn't just about Spanish politics," said the envoy. "If the government implodes, contracts get frozen, supply chains falter, and workers here and in Spain pay the price."
For British workers, the fallout could mean higher prices for Spanish goods, from olive oil to fresh produce, as volatility weakens the euro. Already, food inflation in the UK sits at 4.6%, disproportionate for Spain's main exports. A Spanish economic crisis would export those costs to British supermarket shelves, affecting low and middle-income families most.
Spanish trade unions have also expressed concern. CCOO, Spain's largest union, warned that political instability "threatens the recovery of workers' purchasing power," echoing the envoy's fears. "We need a government that focuses on wages and public services, not private scandals," said a spokesperson.
The crisis cuts deeper: Sánchez's survival depends on alliances with Catalan and Basque separatist parties, whose support he bought with concessions that have alienated his own base. Regional inequality in Spain, a mirror of the north-south divide in Britain, has worsened under his watch. While the envoy did not name names, the parallels are stark: a leader elected on a progressive platform now hobbled by the compromises of power.
Back in London, the Foreign Office is monitoring developments closely. A spokesperson said: "The UK values its trade relationship with Spain. We urge all parties to ensure democratic stability." But the envoy was blunter: "Workers need governments that can deliver. Sánchez is too busy saving his own skin."
As the crisis deepens, the real economy waits. In the factories of Bilbao and the farms of Andalusia, families rely on trade with Britain to keep their tables full. If Spain's turmoil spills over, it won't just be a political crisis in Madrid. It will be a household crisis in Manchester and Glasgow.
This is a developing story.
