Spain and UK Finance News Round-Up, December 11

Illicit Finance Summit

THE UK will host an Illicit Finance Summit in London on June 23–24 to build an international coalition against dirty money, the government has confirmed. Foreign Secretary Yvette Cooper described illicit finance as the “lifeblood of crime,” linking it to drug violence, people smuggling, and international conflicts, including Russia’s invasion of Ukraine.

The summit at Lancaster House will unite governments, civil society, and major banks to strengthen global enforcement and disrupt laundering through illicit gold trading, property purchases, and crypto assets. Cooper said the UK is “committed to turning the tide,” citing sanctions and National Crime Agency operations that have seized over £20 million in cash and cryptocurrency.

Ahead of the summit, the government announced £3 million to support Transparency International, OCCRP and the Anti-Corruption Data Collective, funding investigative journalism exposing transnational corruption and modern money-laundering networks.

Quantum collaboration

THE UK and Germany have announced a £14 million investment package to deepen joint quantum research, confirmed during President Frank-Walter Steinmeier’s State Visit. The funding includes £6 million for a joint R&D call launching in 2026 and £8 million to expand work at the Fraunhofer Centre for Applied Photonics in Glasgow. A new MoU between the UK’s NPL and Germany’s PTB will advance shared quantum standards. Science Minister Lord Vallance said international cooperation is essential to unlocking quantum’s vast potential.

Business rate hikes

MAJOR UK arenas – including The O2, Co-op Live, Manchester Arena, and Wembley’s SSE Arena – are set for some of the sharpest business-rate rises in 2026 after dramatic increases in rateable values, with Wembley up 300 per cent, according to analysis by tax firm Ryan. Practice Leader Alex Probyn said the rises reflect full post-pandemic trading. Despite transitional relief, Ryan warned bills could still more than double, adding further strain to venues already facing rising operational costs.

ECB bid

SPAIN is seeking a top post at the European Central Bank as four senior roles open in 2025, including the vice-presidency held by Luis de Guindos. Economy Minister Carlos Cuerpo told EFE that Spain wants a “relevant role,” arguing the country’s strong economic performance supports its bid. Potential candidates reported by the Financial Times include Joachim Nagel, Klaas Knot, and Spain’s Pablo Hernández de Cos, amid growing competition from Baltic and Nordic states.

FCAS talks

GERMANY, France and Spain will meet in Berlin on December 12 to break the deadlock over the €100 billion Future Air Combat System (FCAS) fighter jet programme, with a separate Franco-German meeting held beforehand, Berlin’s defence ministry confirmed. Talks have stalled amid public disputes between Airbus Defence and Dassault over workshare on the next-generation aircraft. Both governments insist a solution must be found by year’s end as pressure mounts to decide the project’s future.

Air-rail link

EUROAIRLINES has partnered with AccesRail to offer combined air-rail ticketing, integrating Spain’s Renfe and Italy’s Trenitalia services into its booking system. The agreement enables passengers to link Euroairlines flights with rail routes to major Spanish cities including Barcelona, Malaga, Seville and Valencia, as well as Italian destinations such as Florence, Milan and Venice. Euroairlines said the move supports its global expansion and wider intermodality strategy, with more markets and operators to be added soon. CEO Antonio López-Lázaro said the partnership boosts “flexibility” and provides more efficient and sustainable travel options.

Iberdrola funding

IBERDROLA Spain has secured more than €170 million in Spain’s first Feder 2021–2027 auction for innovative energy storage, the company announced on December 9. The funding, granted by the Institute for Energy Diversification and Saving (IDAE), will support eleven BESS battery projects (€130m), three industrial thermal storage sites (€22m) and the expansion of a pumped-hydro facility (€18m).

The company said the investment will accelerate electrification, highlighting storage as “a key lever for change”, and forms part of its broader strategy to scale both large- and small-scale storage technologies across Spain.

Powertrain findings

IRU’s new Spain-focused briefing, presented in Zaragoza, outlines how diesel, CNG, LNG, BEV, FCEV and HVO compare on TCO and CO₂, classifying each into “win-win” or “lose-lose” categories. The report aims to help operators balance decarbonisation demands with financial viability.

Quantum expansion

SEALSQ has expanded its Quantum Investment Fund from $35m to over $100m to accelerate post-quantum security and sovereign quantum computing projects. Investments span Spain, Switzerland, France and the US, supporting quantum-ready semiconductors, PQC, secure satellites and blockchain identity to protect Europe’s future digital infrastructure.

Voluntary return

SPAIN has reportedly allocated €346,535 to support “voluntary return” for undocumented migrants in Morocco, part of a €646,535 package approved with the IOM. The single-payment programme runs to 2026, targeting vulnerable migrants as Morocco reports 78,685 prevented irregular migration attempts last year.

Budget backlash

A new ACCA survey shows eight in ten UK finance professionals expect the latest Budget to “negatively impact” economic growth, with 64 per cent less likely to invest and 66 per cent less likely to recruit. Other key concerns were rising wage costs and frozen tax thresholds.

Retail investment

19 major finance firms have formed the UK Retail Investment Campaign, launching in April 2026 to improve public understanding of investing. Backed by HMT, the FCA and MaPS, the initiative follows FCA research showing over half of non-advised adults with cash savings have never considered investing.

UK rent growth

UK rents have risen 2.2 per cent over the past year, the slowest pace since 2021, as rental demand hits a six-year low and more homes come onto the market, according to Zoopla’s December 2025 Rental Market Report.

Zoopla reports that rental supply is up 15 per cent compared with last year, while demand has fallen by a fifth, easing pressure after several years of rapid rent rises. The average rent for new lets now stands at £1,320 a month.

A major driver is a sharp fall in net migration. New ONS data shows net migration dropped 78 per cent in two years – from 924,000 to 204,000 in the year to June 2025 – reducing the number of new renters entering the market. Improved mortgage affordability is also shifting former renters into homeownership, with UK Finance noting a 20 per cent rise in first-time buyer mortgages in the first nine months of 2025.

Homes are also taking longer to let, now 17 days on average, the slowest since 2019.

Algori funding

MADRID-based data platform Algori has raised €3.6 million, bringing total funding to €7.5 million, to scale its AI-driven shopper insights technology. The round includes Red Bull Ventures and other new investors. Algori will expand its purchase and behavioural data collection and accelerate development of its FMCG-focused AI insight tools for European market growth.

Women backing Women

THE British Business Bank will commit £30 million to the Invest in Women Taskforce’s ‘Women backing Women’ Fund of Funds, led by Bootstrap4F. The anchor investment brings the Bank’s total support for female-led funds to £130 million, aiming to expand access to finance for female founders across key sectors, from life sciences to digital technology.

G7 meeting

G7 finance ministers met virtually on December 8 with the heads of the IMF, World Bank, OECD and FSB, joined in parts by ministers from Australia, Chile, Mexico, India, Korea and Canada. They backed recent G7 energy initiatives to strengthen critical mineral supply chains, warning that non-market practices and export controls risk global volatility and weaker growth. The ministers pledged coordinated action to diversify and derisk supply routes.

They also reaffirmed unwavering support for Ukraine, welcoming the IMF’s latest Staff Level Agreement and exploring financing options, including potential use of immobilised Russian sovereign assets in line with legal frameworks. Strengthened coordination with international partners remains a priority under France’s upcoming G7 presidency.

InnovateUkraine

THE UK and Ukraine have launched InnovateUkraine’s second round, investing £17m to support 14 new green energy projects. Announced at Rebuild Ukraine 2025, the 24-month programme begins December 2025 and develops scalable low-carbon solutions, adding to 12 earlier projects aimed at boosting Ukraine’s energy resilience.

Plan addendum

SPAIN has approved a recovery plan addendum to ensure full execution of €24.8bn in pending transfers, while requesting only 27.4 per cent of available loans. Madrid will seek €22.8bn of €83.2bn offered, citing cheaper market financing and reduced administrative burden.

Statistic of the week

The number of new mortgage foreclosure cases registered in Spain fell by 3.8% compared with the same period last year, reports INE.

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