Key facts
- Spain's lower house rejected the government's proposed 2027 spending framework.
- The vote was 166-176 with five abstentions.
- Spain has not passed a new budget since 2023, rolling over 2023 accounts for three years.
- The government faces challenges in a fragmented parliament, lacking support from major parties.
- Smaller parties have largely disengaged from the remainder of the term.
- Lawmakers did approve separate measures to protect consumers and businesses.
Spain's lower house of parliament rejected the government's proposed 2027 spending framework on Thursday, a significant setback for its efforts to approve a state budget before the end of the legislative term next year. The proposal was defeated by a vote of 166-176, with five abstentions.
This failure underscores the challenges faced by the minority coalition government in a fragmented parliament, where it lacks sufficient support to pass legislation. Spain has not passed a new budget since 2023, instead rolling over the previous year's accounts for three consecutive years. The government's inability to secure backing from major parties like the conservative People's Party (PP), far-right Vox, Catalan separatist party Junts, and hard-left Podemos highlights the ongoing parliamentary deadlock.
Some smaller parties that previously supported the government have indicated they are disengaging from the remainder of the term, citing corruption investigations impacting the ruling Socialist Party. Prime Minister Pedro Sanchez has stated his intention to complete the legislative term, with the next general election constitutionally required by August 2027.
Despite the rejection of the spending framework, lawmakers did approve separate government measures designed to protect consumers and businesses from the economic effects of recent international conflicts.