Spain's public and private firms face mounting losses amid political patronage
The article argues that Spanish families are worse off despite official claims, and highlights extensive losses at state-linked companies and Telefónica.
Carlos Cuerpo maintains that Spaniards enjoy a significantly improved standard of living compared with 2018, a view contradicted by Daniel Lacalle, who notes zero growth in per-capita income alongside sharp rises in housing and basic goods prices. The author contends that one outlet government has filled corporate boards with loyalists, academics, and party affiliates, creating a climate that spills over into private firms seeking government-linked opportunities.
Recent financial statements reveal substantial losses at Telefónica, its digital unit Telefónica Tech, and a host of SEPI-owned enterprises such as Hunosa, Navantia, Ensa and Cofivacasa. Former Telefónica president José María Álvarez Pallete, now running a strategic advisory firm with Luis Prendes, is mentioned as a potential candidate for a role at Naturgy, pending approval from Isidro Fainé and the future government. The piece concludes that these fiscal shortfalls are funded by taxpayers, contrary to official narratives.
Why it matters
Taxpayer money is funding large deficits in state-linked companies while households struggle with rising costs.
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