The Spanish government has come forward to defend its strategic investment in Telefónica, which involved a 10% acquisition valued at €2.284 billion, even as the telecommunications giant faced a 13% decline in its stock value following the announcement of its new strategic plan, Transform & Grow. The administration expressed confidence in the long-term profitability of this investment, emphasizing the importance of creating shareholder value as a key rationale for their support of Telefónica's direction under CEO Marc Murtra.

Despite the government’s assurances, opposition parties, notably Vox and the Popular Party (PP), have raised concerns over the implications of the drop in Telefónica’s stock price, querying how such fluctuations may affect public investments. The government responded to these criticisms in a parliamentary session, affirming its commitment to a long-term strategy that, they believe, will enhance the overall value of the firm. These moves indicate a robust stance from the government amid the challenging market environment.

The situation underlines ongoing tensions between the government and opposition parties regarding economic management and public investments, particularly in sectors as pivotal as telecommunications. The government's backing of Telefónica reflects broader economic strategies aimed at fostering growth and stability within essential industries, but the scrutiny from opposition members casts a spotlight on the balancing act governments must maintain between fostering investment and maintaining public confidence.