The Government's Counteroffensive: The Prosecutor's Office, the "Pseudo-Media," and the Ultra-Rich

The government is attempting to respond to the various crises it has faced since the beginning of its term with coordinated initiatives between the Moncloa government and the PSOE (Spanish Socialist Workers' Party). The five days in April 2024, during which Prime Minister Pedro Sánchez reflected on his continued power, marked the turning point. At the start of this year, the counteroffensive has taken a turn. The goal is to counter and resist in the legal, media, and business arenas.

Statute of the Public Prosecutor's Office Disengage the Attorney General

"The Prosecutor's Office, who does it depend on? Who does it depend on?" That question was posed by Pedro Sánchez in a 2020 interview, ultimately concluding that the government is still pursuing him. This, coupled with the investigation of the current Attorney General for an alleged crime of revealing secrets, which has caused the judge to look to the Presidency, has prompted the Executive to present this week a preliminary draft to modify the Statute of the Public Prosecutor's Office. It aims to give a greater appearance of independence to the head of the Prosecutor's Office, with a five-year mandate to separate him from the four-year term of office , and stipulating that communications with the Presidency be in writing and published.

The “pseudo-media” Democratic regeneration plan

In July 2024, Pedro Sánchez announced in Congress the "democratic regeneration plan" to, among other measures, bring "greater transparency and accountability" to the media. The Prime Minister advocated limiting public funding and "ending the impunity of some" media outlets, forcing them to disclose their income. The Socialists have incorporated the term "pseudo-media" into their arguments. However, the law has not advanced in the Lower House. Minister Óscar López is leading the way on this front.

Read also Telefónica and Indra Strategic companies

A year ago, the government invested almost 2.3 billion euros to acquire a 10% stake in Telefónica. This was an operation to maintain control of a strategic company following the emergence of the Saudi STC. Months later, the Moncloa (Ministry of Economy and Finance) replaced the multinational's president, José María Álvarez-Pallete, with Marc Murtra . The government appointed Carlos Ocaña, a close associate of the Socialists, to the board of directors. At another strategic company, Indra, the government is also pulling strings. The goal is to create a national defense giant capable of competing head-to-head with the sector's major players in the current new golden age of the military industry. The United States and NATO are pushing to continue increasing defense spending beyond 2% of GDP. The Moncloa (Ministry of Economy and Finance) promotes acquisitions and mergers around Indra and is in favor of the purchase of Escribano, a company owned by the family of the defense group's president. The Moncloa also has its eyes on another listed company, the Prisa group, which is experiencing a turbulent period due to an internal conflict between its main shareholder, Joseph Oughourlian, who until recently was a close confidant of the Moncloa and is now estranged from the Socialist Party, and a group of Spanish shareholders who have been left in the minority.

The “ultra-rich” of the Ibex Tension with the electricity companies

The April 28 blackout opened a new and distinct crisis for the government, which has led, in part, to a clash between the president and the electricity companies over the so-called energy mix . Sánchez insists on defending renewables and has attacked the "ultra-rich" presidents of the power plants. Without naming any businessmen, the term has reignited a new clash with a regulated sector that, therefore, must maintain relations with any government. Since the 2018 vote of no confidence, Sánchez's relationship with the energy companies has been highly tense at times. In 2022, a powerful clash erupted. "I've listened to Ms. Botín and Mr. Galán... if they're protesting, it means we're going in the right direction," said Sánchez, who even spoke of "Madrid circles of gentlemen with cigars." The Iberian gas cap was also another source of conflict. The government and energy companies have met at the recent Davos Forum, but that hasn't prevented another train wreck over the energy tax, which was in effect for the past two years and was waived in January, to the delight of companies, which had the support of Junts and the PNV.

I'll put a stop to the judges “The greatest transformation of justice in decades”

Since Félix Bolaños took office at the Ministry of Justice, a series of reforms have been initiated to, as they say, modernize, democratize, and transform it. At a time when institutional tension between the judiciary and the executive branch is more than evident, this government aims to facilitate access to judges other than through competitive examinations, provide more scholarships to broaden access to the profession, and curb the practice of judges and prosecutors so they can serve as tutors for competitive examinations, in a paid and unregulated capacity.

Regulate instructions Investigating prosecutor and popular accusations

One of the major projects that will be attempted is to reform the Criminal Procedure Law, dating back to 1882. This reform has been on the agenda of politicians for years, under different political parties, under different political parties. Bolaños is willing to do so in this legislative session, even if it means a confrontation with judges, who do not want to lose the power to investigate. With this law, that task would be transferred to prosecutors, and some sectors already believe that taking this step could allow for greater government oversight of certain sensitive cases affecting members of the current administration.

In parallel, the PSOE has introduced a bill to limit the use of public prosecutors, at a time when they are leading the cases most affecting the government, such as those of the president's wife, the president's brother, and the attorney general, all of which have been opened with the opposition of the Prosecutor's Office.