Spanish government sponsors ad to boycott all Israeli goods (updated)

From Palestinian Media Watch:

A boy enters a store and overhears a conversation.
Customer to shopkeeper: “Do you see them? They’re plastering the city with advertisements about boycotting Israeli goods.”
Shopkeeper: “I can’t not bring in [Israeli products], because people ask for them.”
Customer: “Israeli products are better than the local products.”
Shopkeeper to the boy: “What do you want?”
Boy, after looking at Israeli products: “I want Israeli chips.”
He takes the chips, walks to the door, and hears gunfire. He looks around, drops the chips on the floor, returns to the shopkeeper and says: “I don’t want the Israeli product, I want the Palestinian product.”

The advertisement ends by displaying the text: “Don’t prolong the occupation’s life upon our land,” with the logo of the Palestinian NGO Health Work Committees, followed by the logos of the ad’s sponsors:
The Spanish government,
the Spanish Ministry of Foreign Affairs
AECID (Spanish governmental humanitarian aid development),
ACSUR (a Spanish non-profit organization),
Canaan Joint Development Project for Jerusalem (Palestinian).

UPDATE: The Spanish government denies being behind the ads.