Spain’s iconic “chiringuito” beach bars, a major attraction of its coastal tourism, are facing an uncertain future as the European Commission issues warnings over alleged non-compliance with EU law.

The Commission has flagged Spain’s current procedure for approving concessions for these beachfront businesses, claiming it lacks the necessary transparency required by EU regulations for public land use.

Typically, Spain’s process involves an “application of intention,” followed by a 20-day public consultation period. During this time, other interested parties can submit proposals for the same site. However, Brussels argues that this system falls short of the competitive and transparent standards expected under EU law.

The Spanish government has been given a two-month window to address the issue or risk facing sanctions. If unresolved, the case will proceed to the Court of Justice of the European Union, which will determine the legality of the country’s concessionary practices.

This dispute has significant implications for Andalusia, where the regional government (Junta de Andalucía) oversees beach bar concessions. Manuel Villafaina, president of the regional federation for beach traders, has criticised Brussels’ accusations, asserting that Spain’s coastal laws already include competitive measures.

Villafaina stated: “The Ley de Costas [Spain’s national law on coastal use] already ensures competition, allowing anyone to apply. The real issue is prolonged delays in resolving these cases. Regional and central governments have failed to coordinate effectively, leaving us in limbo.”

He added: “It’s absurd for the central government to threaten fines against the Junta when they hold the powers. We must push forward with the paperwork rather than pausing over something that isn’t even a binding law yet and could take years to resolve in EU courts.”

The controversy has stirred unease among Spain’s coastal business community and tourism industry, both of which heavily rely on the allure of beach bars to attract visitors. The resolution of this issue will not only impact the livelihoods of thousands of beach traders but also influence the cultural and economic fabric of Spain’s coastal regions.