The latter would work better in terms of energy losses, but would require major overcapacity in the interconnectors between Spain and France (from Spain's and France's point of view). They'd drag their feet.

We are where we are. Politics is a thing.

If it pushes along the transition from fossil fuels to renewables, I don't care if it's "inefficient". Show me a major company that hasn't wasted money or done something in a way that is technically less than optimal.