Business & Finance

Spat in Spain over bailout of tiny Venezuela-linked airline

  • The money came from a 10-billion-euro rescue fund created by the government of Socialist Prime Minister Pedro Sanchez to help strategically important firms hit hardest by the pandemic.
Published April 8, 2021 Updated April 8, 2021 04:59pm
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MADRID: A multi-million-euro rescue of a tiny airline with just four planes has sparked controversy in Spain, with its leftwing government under fire for extending special treatment to the Venezuela-linked firm.

The row is over a 53-million-euro ($62 million) government bailout extended in early March to Ultra Plus, an obscure airline that links Spain with Ecuador, Peru and Venezuela.

The money came from a 10-billion-euro rescue fund created by the government of Socialist Prime Minister Pedro Sanchez to help strategically important firms hit hardest by the pandemic.

But the move drew a sharp rebuke from Spain's right-wing opposition, which regularly attacks the government over its stance on Venezuela, notably accusing hard-left coalition partner Podemos of being funded by Caracas.

"It's a scandal that's growing by the day and the government is offering no explanation," said Antonio Gonzalez Terol, a lawmaker with the right-wing Popular Party which wants a parliamentary inquiry into the matter.

The liberal Ciudadanos has also urged the European Commission to open an inquiry, while the far-right Vox has filed a complaint with the Supreme Court.