Racism is often socially differentiated from prejudice and insulting or distasteful jokes in that racism are hateful acts, more specifically with respect to acts of violence. A group of black kids beating up a latino kid for being latino is a racist act. Burning crosses on a lawn is racism. Vandalizing a home or car with racial epithets is racism.
In this particular instance, the y eye thing the Spaniards did is a stupid, distasteful joke, in my opinion. But, it doesn't come close to being a racist act. Prejudice, maybe. Ignorant humor, sure. Racist, not really.