Maybe they could circumvent the law by signing a contact where google pays the news organisations, but they in term pay google back for the "exposure". That way both parties would comply with the law and they would still maintain the status quo.
Exactly. For Google's long term credibility and success, they must close Google News Spain (at least temporarily).
Spain is both small enough and large enough to serve as a convenient demonstration of Google's power. Going forward, fear will keep the local publishers in line. Fear of the wrath of Google.