Gold and firefighting planes sold off: the cost of Spain's PSOE governments

PSOE governments sold Spain's gold at $650 an ounce — today it trades above $4,000

Spain sold off its gold at bargain prices while successive PSOE governments looked the other way. The cost of that decision exceeds €11 billion in lost assets. But the story doesn't end there: the same pattern is repeating itself with wildfire-fighting resources. Water bombers declared obsolete and sold to the United States are now fighting fires in Portugal, while Spain must wait until 2028 for replacements.

The gold sale: 133 tonnes at bargain prices

Between 2005 and 2007, the Banco de España, then under Governor Miguel Caruana, liquidated 32% of its gold reserves, equivalent to 133 tonnes (4.3 million troy ounces). The sale brought in around €2,180 million, with gold trading at roughly $650 an ounce. Today, with the metal above $4,000, that same gold would be worth more than €13,400 million. The difference — €11,235 million — has evaporated.

Firefighting planes: sold as obsolete, now operating in Portugal

In 2023, the Ministry for the Ecological Transition auctioned off four Canadair aircraft from the 43rd Air Force Group for €40.3 million. The justification: they were obsolete. A US company bought them, and two are already battling wildfires in Portugal. The new water bombers won't be ready until 2028. Meanwhile, the fleet of Kamov Ka-32 helicopters, considered the most effective, is grounded by sanctions on Russia that block the arrival of spare parts.

The political cost and misplaced priorities

One figure highlights the government's priorities: according to calculations cited in the discussion, the Government spends three times more on maintaining its official Falcon jets than on the entire water bomber fleet. Meanwhile, substantial funds go to infrastructure projects in Segarro. The sense that past mistakes are repeating themselves — selling cheap and paying dearly — runs through the analysis of the situation.

If the trend isn't reversed, Spain will depend on emergency rentals and the goodwill of neighbouring countries for the next wildfire season. But experience suggests that until something truly big burns, the political agenda won't change. Perhaps then it will be remembered that the gold and the water bombers had something in common: they were sold cheap and paid for dearly.