Yeah, except the Spanish media is not at all in a good negotiating position. It's not like the only Spanish-language press is in Spain. Spaniards who like Google's service can just switch their link to news.google.ar, .mx, or whatever. Or Google can even keep news.google.es but focus on stories about Spain as they appear in the Spanish-speaking press outside of Spain.
If Spaniards come to see domestic newspapers as dispensable, those newspapers are the only party that loses. In fact, I would bet that before long, some of the minor Spanish news outlets will break and announce that they have arranged an fee exemption for Google news. Without domestic competition, these sources will suddenly have top billing and a surge in traffic. And suddenly, everyone else will announce their own fee exemption, and this whole thing will end how it started.