Just because you can afford to subsidize something doesn't mean you should. HR has a purpose inside Google, it has an output (payroll, disputes) fair to the input ($$$). Google News would take in $$$ and return nothing.
Yet they're already spending money on Google News: programmers, servers, electricity. So obviously they're getting something out of it, right? There is a purpose to Google News, whether it's tracking cookies or something else; they're not doing it out of the goodness of their hearts.
Google has started all sorts of programs and then shut them down because they didn't turn out as hoped. I don't see why Google News losing money, and, say, becoming especially non-economical or burdensome to the company and being shut-down, would be any different.
I can't imagine Spain makes up a large majority of Google News's traffic.