Spain high-speed rail route faces EU fraud inquiry after deadly crash

European authorities have launched a fraud investigation into the use of European Union funding intended for safety enhancements on a Spanish high-speed rail line where a train collision left 69 people dead.

The European Public Prosecutor's Office confirmed on Friday that it is examining potential financial wrongdoing tied to money allocated for signaling, communication systems, and track safety overhauls along the route linking Madrid and Seville. As part of the inquiry, Spanish police carried out searches at the headquarters of railway infrastructure manager ADIF, alongside investigative steps involving the State Railway Safety Agency and the national Court of Audit.

Prosecutors noted that public interest prompted the rare formal confirmation of the investigation, though further specifics remain under wraps. A related probe had already been started in March covering the same rail section, following an earlier collision in Andalusia that resulted in 46 deaths in January.

The latest catastrophe occurred in late October near the town of Urda, approximately 130 kilometres south of the capital. A train run by state operator Renfe struck the rear of a stationary high-speed train operated by private carrier Iryo. According to officials, an automated safety mechanism had initially halted rail traffic across a 63-kilometre stretch, but controllers subsequently cleared the Renfe train to continue moving forward. A separate Spanish judicial inquiry is actively working to determine the precise operational factors behind the crash.

The fallout from the disaster has triggered intense political repercussions ahead of Spain's general election in November. Transport Minister Oscar Puente, who faced fierce backlash from opposition parties and labor groups after remarks perceived as shifting blame onto a single rail controller, stepped down from his post on Tuesday. Prime Minister Pedro Sanchez has appointed Economy Minister Carlos Cuerpo to oversee the transport portfolio on an interim basis.

Labor representatives have raised alarm over wider safety standards across the national network. The train drivers' union Semaf has announced walkouts for November 10 and 12, citing deteriorating work environments and reliance on substandard systems. Observers have also questioned whether infrastructure spending and maintenance have kept pace with soaring passenger volumes following the 2021 market reform that ended Renfe's monopoly and introduced private competition.