Congress rejects government budget stability path

Spain's Congress rejected the government's proposed budget stability path on Tuesday with 178 votes against and five abstentions. PP, Vox, Junts and UPN voted against, while Podemos abstained. The executive plans to resubmit the same proposal next week.

The vote took place during the plenary debate. Finance Minister Arcadi España defended the proposal, noting it would give autonomous communities an additional 5.850 billion euros over the next three years.

PP, Vox and Junts rejected the path. The PP demanded elections. Vox called it a "string of lies". Junts deemed it a "scam for Catalonia".

The government has announced that the Council of Ministers will approve the same path again next week to submit it to a vote on 23 July. ERC, EH Bildu, PNV, BNG and Coalición Canaria voted in favour.

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Illustration of Spanish Congress rejecting rent extension decree, with vote tally and Minister Bustinduy speaking.
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Spanish Congress rejects rent extension decree

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Spain's Congress rejected a decree-law extending the rent freeze on Tuesday, with 177 votes against from PP, Vox, Junts, and UPN, against 166 in favor and 5 PNV abstentions. The measure would have affected around three million tenants, according to the government. Minister Pablo Bustinduy defended it and urged the PSOE to reintroduce it.

Congress today rejected the fiscal stability path for a second time, with 176 votes against from PP, Vox, Junts and UPN, following an earlier rejection on July 14.

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PP and PSOE voted against a Podemos amendment to remove reduction coefficients for early retirees with over 40 years of contributions. The measure would have affected nearly 900,000 pensioners and cost more than 3.3 billion euros.

The government of Salvador Illa and the central government are preparing a bilateral commission next week to address pending transfers that could help approve the Catalan budgets after the March setback.

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Vice President Carlos Cuerpo defended budget modifications in the Senate and insisted European funds went exclusively to the Recovery Plan.

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