At the European Commission’s Berlaymont headquarters, whispers are buoyant about the complete implementation of the Pact on Migration and Asylum. In the meantime, in Moncloa, Pedro Sánchez is charting a different course. For Spain’s government, moving toward mass regularization of migrants living irregularly aligns with demographic survival, but it is also a bold political move. In the end, it amounts to a unilateral coup that highlights the unspoken truth of European integration: when it comes to the people on your streets, a “common European policy” isn’t understood as a rigid mandate.
The illusion of strength
Brussels’ official stance on immigration has been “borders first.” The new Pact on Migration and Asylum was pitched to the European electorate—and especially to skeptical capitals in the North and East—as the ultimate instrument for harmonization, demanding a unified approach for all who enter and stay—or else be turned away.
“Spain isn’t just facilitating work permits but sending a message to those who see Europe as a fortress”
All told, Madrid’s maneuver exposes the fragility at the center of that political and regulatory architecture. Under the Treaty on the Functioning of the European Union (TFEU, Article 79), Member States retain a “nuclear button”: the right to determine their own volume of migrant admission as well as the legal status of migrants already within their borders. By invoking that national prerogative, Spain isn’t simply easing work permits but sending a message to those who view Europe as a fortress, showing that their plan has a back door that they cannot lock.
Economic realism versus political optics
With that legal reality clarified, the big question is why Sánchez would risk putting Paris or Berlin in a bad mood. Again, the answer lies in demographics. As with many of its European partners, Spain’s population is aging at an alarming rate, precisely when a vital pulse is needed in the labor market. From the strawberry fields of Huelva to construction sites in Madrid, from caring for our elderly to running Barcelona’s kitchens, the Spanish economy operates on the “informal” fuel of undeclared labor. The State is fully aware of this, as are the unions. And business associations have been the loudest advocates for regularization.
“In this government’s opinion, 500,000 new taxpayers (at minimum) are worth much more than a few uncomfortable meetings at the European Council”
In other words, for the Government of Spain the main axis of public policy isn’t simply its humanitarian vision. It’s also a matter of moving hundreds of thousands of people from the “underground economy” and into the light of tax contribution. In a scenario where Social Security systems are under immense pressure, Moncloa seems ready to settle accounts: in this government’s opinion, 500,000 new taxpayers (at minimum) are worth much more than a few uncomfortable meetings at the European Council.
Friction within Schengen
Nonetheless, Spain’s promotion of this measure has been raising eyebrows beyond the Pyrenees. Why? Because within the Schengen Area a residency permit issued in Madrid is, for all practical purposes, a license for free movement. Although an immigrant regularized in Spain doesn’t have the legal right to settle and work in Munich or Lyon, he or she does gain the right to move freely as a tourist, disappearing from the border-control radar that the Migration Pact is so determined to strengthen.
“In 2005, when Zapatero’s government regularized nearly 600,000 people, the reaction from Nicolas Sarkozy and Angela Merkel was harsh”
To better understand this effect, think back to past waves of regularization. In 2005, when Zapatero’s government regularized nearly 600,000 people, the reaction from Nicolas Sarkozy and Angela Merkel was harsh, leading to the 2008 European Pact on Immigration that supposedly “prohibited” mass regularizations. But that prohibition was a political commitment, not a binding law. By moving forward now, Spain is showing that the 2008 pact hasn’t guaranteed peace of mind for Europe’s capitals in terms of potential regularizations by other Member States.
The impotence of Brussels
The Commission, when consulted, answers with a masterful balancing act of bubble-diplomacy, typical of Brussels. “That’s a national matter,” they say. Translated from Eurospeak, this means “we don’t like them doing it, but legally we can’t stop them.”
The Spanish president is challenging his colleagues at the Council to criticize him for his pragmatism, knowing that many – including Giorgia Meloni – are quietly searching for their own ways to fill job vacancies without calling it “regularization”. Because Italy has many of the same labor-market problems as Spain, and although their two approaches are contradictory, the final outcomes are quite similar. Madrid’s gambit is to slam the door shut, while Rome prefers silent infiltration.
To understand the size of the “hole” in the narrative from Brussels, consider the case of Italy, where Meloni’s iron rhetoric obscures a reality identical to that of Spain: the economy rules. While the Italian PM gesticulates at the European Council, demanding naval blockades and migratory return centers in Albania, official State bulletins tell a different story. Through massive expansion of the “Flussi Decree”, Italy’s government has opened the door to more than 450,000 foreign workers. By expanding entry quotas legally, Rome is allowing thousands who already reside and work in the shadows of the country’s agricultural and industrial regions to “cleanse” their status without citing the term “mass regularization”.
Immigration is fragmenting the European Union
Looking at a map of Europe in 2026, the continent appears to be split into three irreconcilable realities: the Northern Fortress, obsessed with externalization of borders and “return hubs”; the Eastern Wall, firm in its rejection of any quota of solidarity; and the Mediterranean Laboratory, where countries like Spain have decided that, in view of ongoing paralysis and a “European solution” that never arrives, it’s preferable to solve one’s crises of employment and demography by recognizing the facts. This continental split confirms that migration has become an existential challenge, exposing the technical and political limits of integration by clashing head-on with the productive needs of each nation.
“Real power in the EU doesn’t always emanate from offices in Brussels, but from national legislation that always responds (or should respond) to the situation on the street”
Madrid’s unilateral move is a reminder that real power in the EU doesn’t always emanate from offices in Brussels, but from national legislation that always responds (or should respond) to the situation on the street. What might be called the “Spanish loophole” isn’t a failure of the Union’s machinery. On the contrary: it’s an intrinsic feature of the persistent national sovereignty that the Treaty of Lisbon failed to dissolve.
As long as this legal margin permits a State to prioritize its own economic survival over consensus from the bloc, any notion of a unified European immigration policy will remain a work of fiction.