Spain is facing a storm of criticism in Brussels for letting Chinese tech giant Huawei handle storage for judicial wiretaps, a move EU lawmakers warn could put the “crown jewels” of European intelligence at risk.

The controversy erupted after Spain awarded a multimillion-euro contract to Huawei last summer, prompting warnings from the United States that intelligence sharing with Madrid could be curtailed. Critics say the deal highlights Europe’s ongoing struggle to protect sensitive digital systems from high-risk foreign suppliers.

Markéta Gregorová, a Czech lawmaker negotiating new EU cybersecurity rules, slammed Spain for entrusting a “high-risk vendor” with sensitive data, warning that it could “poison the well of European intelligence sharing.” Opposition politician Juan Ignacio Zoido Álvarez echoed the concern, saying Madrid’s decision “puts the security of the EU at risk.”

The European Union classifies Huawei as a high-risk supplier and has proposed new legislation to push such companies out of critical infrastructure, after years of voluntary bans failing to curb their presence.

Madrid defends the contract, insisting storage systems were purchased through European firms and integrated into Telefónica’s state surveillance network, SITEL. Officials say Huawei handles only a minor, isolated portion of the system and poses no threat to security or technological sovereignty.

Juan Fernando López Aguilar, an MEP for Spain’s ruling Socialist Party, dismissed EU intervention as unnecessary, insisting there is no risk of espionage or data compromise. Huawei has not commented on the dispute.