Why can't the just display the headline and no snippet from the article text? Or does that count as a snippet? But wait... what about the actual organic search results? Do they have to remove Spanish news articles from that too?
There's no consistency or reason to be found in this, the approach is insanity. What they'll end up doing is jumping from one hot stove to another to another, policy is being made up as they go along based on consequences and political pull.
Even better: keep the Spanish Google News operating but only link to Latin American news sources. Spanish citizens still get news in their preferred language but no traffic goes to domestic media outlets.
Actually, that's probably what is going to happen. Google news will will continue operating, just without the spanish sources.
Probably at some point some guy in some country without strong ties to spain (Probably not south america) is going to wise up, make some kind of spanish-content-only Reddit from there, and earn a shitton of money from the ads.
International? I'd make a Swiss site with Spanish news in Spanish for Spanish expats in Switzerland. Totally legitimate, but it's probably going to be very popular with people in Spain looking for national news online.