SPAIN: Increase in the Money Supply Forecast & more – 24th Dec 2025

Buenos días from Gracia! This is the Rorshok Spain Update from the 24th of December twenty twenty-five. A quick summary of what's going down in Spain.

Kicking off this festive week, the Bank of Spain confirmed its increase in the money supply forecast for the country towards the end of twenty twenty-five and into twenty twenty-six, reflecting stronger-than-expected performance.

Recent data has highlighted the resilience of Spain’s economy and labor market. The Bank has already raised its twenty twenty-five GDP growth this year, marking a steady increase in its economic rate.

However, José Luis Escrivá, the governor of the Bank, highlighted that despite the growth, the government should turn its attention to the country’s housing affordability crisis, stressing the need for coordinated action across all levels of government.

While it may be a jolly season for some, rising costs are putting a huge strain on festive spending. On Tuesday, the 23rd, ESM magazine published an article talking about Spain’s festive food bills, and prices are going up. The article cites data from the National Consumers Association, showing that Spanish households are facing higher costs for Christmas meals this year.

Prices for typical festive food items have risen by an average of 5% compared with last year. Roast beef and oysters recorded the steepest increases, both up 19%.

The survey, carried out across major cities including Madrid, Málaga and Barcelona, also found that seven products are now at record-high prices. Since the first survey in twenty fifteen, the overall cost of the Christmas basket has risen by 57%, with items such as lamb, clams and sea bream seeing especially sharp increases.

On the political front, the ruling Socialist Party suffered a historic defeat in the regional election in Extremadura, south-western Spain, on Sunday, the 22nd.

The Socialists won just eighteen seats in the sixty-five-seat regional assembly, down from twenty-eight, and their worst result ever in the southwestern region they governed for decades. In contrast, the conservative Partido Popular won the majority of seats with twenty-nine seats but fell short of an outright majority, meaning it will continue to rely on support from the far-right Vox party.

Vox more than doubled its representation, but the main focus was on the Socialists’ national standing, as the minority coalition government faces corruption and misconduct allegations involving senior figures, including former aide José Luis Ábalos and members of Sánchez’s family.

Meanwhile, the latest survey released on Tuesday, the 23rd by Spain’s Center for Sociological Research found that interest in politics among Spaniards has increased, with just over 57% expressing a strong or moderate interest.

According to the survey, the main influences on political opinions over the past two years have been the Internet and social media, followed by television and political leaders.

The survey also showed that Spaniards foresee a troubling future for the country, with worries of more wars, inequality, migration, unemployment, environmental degradation, diseases, and social isolation.

Since we mentioned the environment, Real Madrid’s football coach is in trouble, as on Thursday, the 18th, Environmental groups filed a complaint with the Public Prosecutor’s Office in Gipuzkoa over the controversial mansion built by Real Madrid coach Xabi Alonso in the Igeldo area of San Sebastián, northern Spain, saying it violates land-use rules.

They argue the villa sits on a plot that was designated for a golf school under a two thousand seven special urban plan, and that authorities wrongly authorized access routes that are only permitted for that purpose.

The environmentalists’ filing also says that part of the road leading to the house might be on public land. If the allegations are upheld, the ruling could mean Alonso has to move out, and the house could be left abandoned or demolished.

On that note about football, on Monday, the 22nd, FIFA updated its international rankings, meaning Spain will begin twenty twenty-six as the top‑ranked team in the men’s division going into Christmas. Spain’s rise to the top is attributed to a consistently strong year of results and dominance on the international stage.

They reclaimed the top spot from former number one, Argentina, in the September rankings and held it through December, finishing twenty twenty-five as world number one.

Key to Spain’s position was a successful World Cup qualifying campaign, where they topped their group with convincing performances, boosting their points total in FIFA’s system. Alongside consistent results, stars such as Lamine Yamal have contributed to more media attention this year..

Now for some Christmas luck. If you didn't know, El Gordo, or the annual Christmas lottery, is a huge tradition across the country, and this year it awarded especially generous prizes. On Monday the 22nd, the prize pot handed out a total of 2.77 billion euros, slightly more than last year’s 2.7 billion.

The draw brought particular joy to the province of León in the north-west, which wildfires hit hard earlier this year, as many top-prize winners live there.

Officials televised the draw at Madrid’s Teatro Real, upholding a tradition that has lasted more than 200 years. And as generations before them have done, students from San Ildefonso School, the second-oldest school in Madrid, drew the winning numbers.

Families and coworkers actively participate in the annual lottery, pooling money to buy full tickets or partial shares.

Check out how El Gordo works with the link in the show notes.

From lottery wins to hotel accolades. On Tuesday the 23rd, a market report from Alianza Hotelera, a Spanish collaborative initiative promoting innovation and sustainability in the hotel sector, revealed that Malaga, in southern Spain, ranked as the country’s second most popular hotel destination in twenty twenty-five.

The Costa del Sol capital recorded an annual average room occupancy rate of just over 83%, second only to the Canary Islands’ Fuerteventura, at 86%. The report highlights strong but stabilizing growth across Spain’s tourism sector, with Alicante, Valencia and the Canary Islands also posting higher than average occupancy levels.

These hotels aren’t always cheap, though. In Marbella, rooms averaged around 380 euros per night, more than double the national average of about 190 euros, according to travel company Kayak.

In other news, Spain will establish a national network of climate shelters in public buildings ahead of next summer.

The announcement was made late last week at a climate conference in Madrid. The shelters are intended to provide refuge from extreme heat, which President Pedro Sánchez said has become the new normal, with prolonged heatwaves now lasting from June through August.

In twenty twenty-five, the country had its hottest summer on record, experiencing three heatwaves, including a sixteen-day stretch in August when temperatures exceeded forty-five degrees Celsius or 113 Fahrenheit in some parts of the country, according to the State Meteorological Agency AEMET.

The national government will fund the shelters and prioritize them in the most affected areas, complementing existing regional programs in Catalunya, the Basque Country in the north, and Murcia in the south.

And finally… according to a recent article published by Euro Weekly News on Tuesday the 23rd, the Iberian Peninsula, home to Spain and Portugal, is slowly rotating clockwise, but don't panic. It's moving so slowly - it's undetectable day-to-day.

So, what's causing it? Scientists say that deep tectonic forces between the African and Eurasian plates are driving this motion, causing the plates to move at about four to six millimeters per year, less than a quarter of an inch. Researchers have detected this subtle movement using seismic data and satellite GPS measurements. So, while it has no impact on daily life, the movement helps scientists better understand earthquake patterns that don’t align with visible fault lines.

This kind of data is especially important because much of the country -particularly the south- lies along a complex tectonic boundary.

Aaand that’s it for this week! Thank you for joining us!

We just want to say a huge thank you to everyone who’s been listening, subscribing, and sharing their thoughts with us. Your support keeps us going, and we’re grateful for every one of you. Happy holidays!

¡Hasta la próxima!