UK climate finance FOREIGN Secretary David Lammy announced £12 million in disaster risk funding to help vulnerable nations respond faster to climate shocks (GOV.UK). The move, backed by UK investors, aims to cut disaster recovery time abroad while fuelling green jobs at home. Lammy said the climate crisis is “a huge opportunity” for UK growth and the City of London must lead in sustainable finance. Spain’s funds THE EU has cut €627 million from Spain’s recovery funding over its failure to curb long-term temporary contracts in public administration (Ara). Spain will also lose €500 million more for not hiking diesel taxes or improving local digitalisation. Economy Minister Carlos Cuerpo claims talks are ongoing, with reforms to be rushed through Congress. Will this force Spain to finally end precarious public contracts – or just patch over EU demands again? A new survey shows three in four UK businesses are now using or exploring AI to boost productivity and cut costs (Business News Wales). Adoption is highest in marketing, customer service, and analytics, with legal and HR sectors embracing AI for even phone support. But concerns remain: 43 per cent worry about data security, while 42 per cent fear staff anxiety. Is the AI revolution helping or just replacing human jobs too quickly? QualiBooth expands SPANISH startup QualiBooth has raised €2 million to expand its AI-powered digital accessibility platform across Europe (as reported by Tech in Asia). The funding follows the European Accessibility Act that took effect on June 28, mandating inclusive design for sites like ecommerce and banking apps. QualiBooth will open a new Barcelona office and accelerate development to help companies meet strict EU compliance rules. Spain-Africa Summit 2025 MADRID, July 6–8 – Top voices from Spain and across Africa gathered at the Africa-Spain Summit 2025 to push for stronger cooperation in trade, migration and climate. “Africa must occupy a more central focus as a partner of Spain and Europe,” said Espérance Kazabe, North Kivu’s Agriculture Minister, at a panel on sustainable integration, as reported by Atalayar. OECD’s Arthur Minsat urged Europe to ditch outdated fears: “There is more risk investing in Latin America than Africa,” he said, calling for a shift in perception. On migration, Spain’s Santiago Yerga Cobos stressed: “The main objective is to achieve regular, orderly and legal migration with the primary goal of finding work.” UK business optimism DESPITE rising costs and looming tax hikes, UK business leaders remain upbeat, according to Grant Thornton’s Business Outlook Tracker. The firm reports that “all 800 respondents… have expressed optimism about the UK economy,” with mid-market businesses showing 81 per cent confidence – 11 points above the average since 2021 International Accounting Bulletin. But behind the optimism, strain is showing. “Businesses continue to grapple with high operating and people costs,” said Grant Thornton’s Tom Middleton, pointing to April’s National Insurance and wage increases. Despite job cuts and frozen hiring, 43 per cent of firms still plan to increase recruitment spending. With 75 per cent expecting a tax rise before year-end, is this steady optimism a sign of resilience, or false hope in a tightening economy? Film investment FOREIGN film investment in Spain dropped 33.6 per cent in 2024, falling to €129.9 million, per PROFILM (Cineuropa). The group blames outdated tax incentives, while countries like Italy and France offer up to 40 per cent. Madrid saw no shoots but led in post-production. UK transport THE UK’s £92 billion (€106.6 bn) investment in over 50 road and rail projects is expected to support 42,000 jobs, unlock 1.5 million homes, and fast-track economic growth, according to a GOV.UK press release. Chancellor Rachel Reeves said the upgrades will “grow the economy and put more money in working people’s pockets.” Alstom’s sales ALSTOM Spain posted €809 million in sales for 2024/25, with over half from international projects, as reporyed by Railway-News. Its operations supported 7,316 jobs and contributed €400 million to Spain’s GDP, while spending €530 million with nearly 1,000 local suppliers. 3°C warming A 3°C global temperature rise could wipe out 8 per cent of UK GDP and add 74 per cent of GDP to national debt by the 2070s, warns the Office for Budget Responsibility, cited by Reuters. The long-term economic cost of inaction is now seen as far greater than previously forecast. Geneva Business School GENEVA Business School marked its 30th anniversary at its Barcelona graduation ceremony, celebrating 168 graduates from 40+ nationalities. Speakers urged students to lead with purpose in today’s volatile world. With Swiss standards and real-world business training, the school positions itself as a top global talent hub within Spain’s competitive education industry. Propel Finance UK fintech Propel Finance has secured £1.57 billion (€1.84 billion) to boost lending to small businesses, helping firms access vital equipment and vehicles (PYMNTS). With UK micro-businesses facing rejection rates five times higher than larger firms, Propel aims to bridge the gap with flexible, accessible asset financing. CaixaBank-Arval deal CaixaBank and Arval aim to market 200,000 vehicles in Spain by 2030, expanding on their 15-year partnership to drive sustainable mobility (Asset Finance Connect). With electrified vehicles now taking 47 per cent of new production, the alliance boosts eco-friendly leasing, fleet renewal and air quality improvements across Spain. Spain exits Eurogroup race IRELAND’S Paschal Donohoe was re-elected as Eurogroup President unopposed, after Spanish Economy Minister Carlos Cuerpo and Lithuania’s Rimantas Sadzius withdrew their bids (Capital). Cuerpo admitted lacking support and called his exit an “exercise of responsibility” in favour of a consensus pick. Spain’s losing streak continues – after Nadia Calviño in 2020 and Luis de Guindos in 2015 – raising fresh doubts about its influence in eurozone leadership. Spain may need to rethink its strategy before trying again in 2028. Santander buys TSB SABADELL has confirmed the sale of TSB to Santander Group, marking a major shake-up in UK banking. TSB CEO Marc Armengol called the deal “an exciting chapter,” adding it will benefit TSB’s loyal customers under Santander’s ownership. Statistic of the week: CaixaBank expects Spain’s GDP to grow by 2.4 per cent in 2025. View all finance news.