Spain and UK Finance News Round-Up, Jan 8

€355m investment in renewables

SPAIN has launched a €355 million renewables manufacturing subsidy programme aimed at strengthening the industrial value chain linked to the energy transition, according to official and industry sources.

The initiative has been introduced by the Ministry for Ecological Transition and the Demographic Challenge (MITECO) and will be financed through Spain’s Recovery, Transformation and Resilience Plan (PRTR), funded by NextGenerationEU. Grant management will be handled by the Institute for Diversification and Energy Saving (IDAE).

The programme represents the second call under the RENOVAL framework (RENOVAL 2) and is designed to support manufacturing capacity for clean-energy technologies.

Results from the first RENOVAL call, announced in March 2025, saw more than €210 million allocated to solar PV manufacturing. Sunwafe received €200 million for a planned 20GW wafer plant in northern Spain, alongside awards to MCPV and European Solar Cell Company (Escelco).

MITECO states that RENOVAL 2 is intended to improve energy security, competitiveness and industrial decarbonisation, in line with the European Commission’s Clean Industry Pact.

The programme signals continued public investment in Spain’s clean-energy manufacturing base, reinforcing the country’s role as a hub for renewable technologies within the EU.

Spain refunds €13bn+

SPAIN’S Tax Agency has refunded more than €13 billion to taxpayers following the conclusion of the 2024 personal income tax (IRPF) campaign, according to official figures released on January 2.

By December 30, 2025, refunds totalling €13.094 billion had been paid to 15.6 million taxpayers, with 97.5 per cent of refund requests processed and 95.5 per cent of the corresponding amounts already paid.

A total of 24.72 million tax returns were filed by the end of the year, representing a 2.4 per cent increase on the previous campaign. Around 65 per cent of all declarations resulted in a refund.

The agency highlighted growing use of digital and assisted filing services, alongside continued demand for in-person and telephone support. More than 47,000 amended returns were submitted after preventive warnings, helping taxpayers avoid future checks, interest charges and potential penalties.

First-time buyers

MORTGAGE approvals for first-time buyers in Ireland have reached record levels, accounting for almost 60 per cent of new loans, according to the Banking and Payments Federation Ireland. More than 30,000 first-time buyer mortgages worth almost €10 billion were approved in the 11 months to November, the highest since records began in 2011. However, overall mortgage approvals fell by 3.4 per cent year on year, with a notable slowdown in home-purchase lending despite strong growth in mortgage switching activity.

Clarity Act

US legislation aimed at regulating the cryptocurrency market is unlikely to be passed before 2027, amid political disputes and the approach of the 2026 midterm elections. The proposed Digital Asset Market Structure Clarity (CLARITY) Act has stalled over disagreements between Democrats and Republicans, particularly on conflict-of-interest provisions. Analysts at TD Cowen warn the delay will prolong regulatory uncertainty, with potential knock-on effects for European crypto firms and investors operating across US markets.

UK forecast

BRITAIN enters 2026 facing cautious optimism, according to CNBC, with attention focused on interest rates, jobs, business confidence, and market activity. The Bank of England is expected to cut rates further, though inflation remains above target. Unemployment has risen to its highest level since 2021, adding pressure on Chancellor Rachel Reeves. While the FTSE 100 performed strongly in 2025, weak investment and a sluggish IPO market continue to weigh on the broader UK economy.

Bizum payments

THE Andalusian Regional Government has added Bizum as a payment option for regional taxes and public fees, as part of its digitalisation drive. The system, available since December, allows payments of up to €1,500 per transaction, subject to individual bank limits. Taxes covered include Inheritance and Gift Tax, Property Transfer Tax, and Stamp Duty, along with administrative fees. Regional finance minister Carolina España said the move strengthens administrative simplification and brings public services closer to citizens by using everyday digital payment tools. Bizum joins existing options such as card payments, direct debit, and bank transfer.

UK consumers

BRITISH consumer borrowing rose by the most in two years in November, according to data from the Bank of England, signalling resilient household demand before the autumn Budget. Net consumer credit increased by £2.08 billion, the strongest rise since November 2023 and above economists’ forecasts. Annual growth in consumer credit reached 8.1 per cent, its fastest pace since mid-2024. Alex Kerr of Capital Economics said expectations of tax rises had little impact on spending. Meanwhile, mortgage approvals edged down slightly to 64,530 in November.

Building slump

UK housebuilding slumped at its fastest pace since May 2020 in December, as Britain’s construction downturn stretched to a 12th month. S&P Global’s PMI edged up to 40.1 but stayed deep in contraction, highlighting weak demand, fragile confidence and stalled investment decisions.

Carillion fines

BRITIAIN’S Financial Conduct Authority has fined two former Carillion finance directors after they dropped appeals over misleading investors before the contractor’s 2018 collapse. The watchdog said both acted recklessly, failing to disclose serious financial problems as liabilities reached £7bn.

Data arrest

SPANISH police have arrested a suspect over the theft of personal data belonging to 9.7 million Desjardins members. Quebec authorities say the Canadian citizen of Ecuadorian descent bought stolen information and used it in fraud schemes, with extradition proceedings now under way in Spain.

Services surge

SPAIN’S services sector closed 2025 with its strongest growth in a year, as the Purchasing Managers’ Index (PMI) climbed to 57.1 in December. Rising sales and hiring drove expansion, offsetting weaker manufacturing, though faster input cost inflation remains a concern for policymakers.

Hospitality fund

BARCELONA-BASED 4Founders Capital has launched a €60 million hospitality fund focused on Spanish hotel real estate. Approved by the CNMV, the six-year vehicle targets around 15 hotels in Tier 2 cities, reflecting strong investor appetite for Spain’s hotel industry.

DIA growth

SPANISH grocery retailer DIA strengthened its market position in 2025 after opening 94 new stores, exceeding expansion targets and lifting market share to 5.2 per cent, according to NielsenIQ. Growth was driven by convenience formats, logistics investment and a stronger focus on fresh produce, alongside wider online coverage across mainland Spain.

Renewable power

SPAIN has launched a €50 million grant scheme to support renewable power and heat projects replacing fossil fuels, under the second round of the RENOCOGEN programme. The initiative, led by the Ministry for the Ecological Transition, will fund up to 65 per cent of eligible costs, targeting lower emissions.

Lacking knowledge

A survey by housebuilder Barratt London suggests financial ignorance, rather than high rents or deposits, is the main barrier stopping young people from buying homes. Around half of UK adults want to improve their financial literacy in 2026, with 31 per cent planning to save for a deposit, rising to 52 per cent among Generation Z. Nearly 30 per cent of Gen Z aspiring buyers say they do not understand the buying process, ranking this above saving for a deposit or securing a mortgage. Barratt London says better education could help young buyers onto the property ladder sooner.

Silver and gold

SILVER and gold enter 2026 as cornerstone assets after rebounding from late-2025 selling pressure, analysts say. Saxo Bank’s Ole Hansen cites resilient demand, currency debasement fears and industrial needs, with gold near $4,478 (€4,120) and silver above $80 (€74) an ounce.

Seafood power

SPAIN has cemented its position as a global leader in canned fish and seafood exports, driven by Galicia’s dominant role in processing and production. The region underpins a highly specialised, export-focused industry prized internationally for reliability, scale and regulatory standards.

Statistic of the week

The total expenditure of international tourists visiting Spain in November increased by 5% and reached 8,094 million euros.

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