The Government continues with its plan, although it is not going as desired. This Tuesday, the plenary session of the Congress of Deputies rejected the deficit path that would serve as the basis for the General State Budgets (PGE) for the 2027 fiscal year. As expected, the majority of the lower house, including PP, Vox, and Junts, voted against it. There were 178 negative votes, 167 in favor, and 5 abstentions.
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Thus, the proposal for budgetary stability and public debt targets will be subjected to a second vote in Congress next week, on July 23, after passing again through the Council of Ministers, where its approach is expected to remain unchanged.
If on July 23 the path is again rejected by Congress, the Government could opt to process the budgets based on the data committed to Brussels (with a deficit for public administrations of 1.8% of GDP for 2027, 1.6% in 2028, and 1.5% in 2029), although the autonomous communities would have to achieve stability, so they would not have that fiscal margin of 5,849 million euros.
The Minister of Finance, Arcadi España, has reproached the attitude of the autonomies governed by the PP. “It is totally incomprehensible from a rational point of view that the communities already voted against this proposal at the meeting of the Fiscal and Financial Policy Council,” he said, while citing Galicia as an example, which based its argument on responsibility, something questioned by the Finance Minister. He also defended that the stability of public accounts is what allows strengthening healthcare, education, housing, and pensions, “in short, the welfare state.” And he described them as an instrument of economic sovereignty.
Arcadi España warns that the autonomies could lose 5,849 million euros
On his side, the popular José Vicente Marí Bosó began his intervention by saying that the only agreement Spaniards expect is Sánchez’s resignation and the calling of general elections. The deputy spoke of a “Government in rebellion” and criticized that a 0.1% margin is proposed for the autonomous communities, although the spending rule prevents spending because a surplus would be needed for that, he assured. Marí Bosó also referred to uncontrolled public spending, a low-wage economy, precariousness, and a fiscal hell for citizens.
In parallel, José María Figaredo (Vox) accused the minister of giving “wrong or false” economic data to defend the Government’s path and reproached him that in eight years the Executive has only approved three budgets. “They collect and spend like Switzerland, but the impact and productivity are those of Romania,” he highlighted.
For Junts, Josep Maria Cruset stated that the Ministry of Finance is “a true predator,” both for families and companies and the rest of public administrations. And he criticized that, out of every 100 euros to be distributed, only 1 will be for Catalonia, while this territory pays 21%. He asked Arcadi España to stop deceiving people, since “everyone knows there will be no PGE.” As already anticipated, this formation voted against the Government’s initiative. “If the Spanish Government makes the same proposals as in previous years, it will get the same result and they will not be able to count on our vote,” warned sources from the post-convergent formation.
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Joining the ‘no’ from PP, Vox, and Junts were also two deputies from the Mixed Group: Águeda Micó (Compromís) and Alberto Catalán (UPN).
PP talks about uncontrolled public spending, precariousness, and fiscal hell
On the other side, the parties of the Government, PSOE and Sumar, and also Esquerra Republicana (ERC), EH Bildu, PNV, BNG, and Coalición Canaria voted in favor. ERC deputy Teresa Jordà stated that Catalonia suffers from underfunding and limits, but her group voted in favor “despite everything,” out of responsibility, not conformity, as she explained. As last year, Podemos deputies opted for abstention.
The Government’s path sets the deficit for all public administrations at 1.8% of GDP for 2027, 1.6% in 2028, and 1.5% in 2029. Of these, the Central Administration would assume 1.5% in the next year, 1.4% in 2028, and 1.3% for 2029.
In parallel, the Executive would grant the autonomous communities a deficit of 0.1%, so they would have a fiscal margin of around 5,849 million euros, something that the autonomies governed by the PP reject en bloc.
At the proposal of the Catalan consellera, Alícia Romero, the department led by Arcadi España proposed that this deficit could be asymmetric and vary depending on each territory and its fiscal situation, although this idea has also not been accepted by the popular party. However, according to the minister, this would benefit regions like the Valencian Community and Murcia, and it was already a measure applied by Mariano Rajoy’s Government in 2013.
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