MADRID, July 23 (Reuters) – Spain’s lower house rejected the government’s proposed 2027 spending framework on Thursday, dealing a fresh blow to its efforts to approve a state budget before the end of the legislature next year.
• The proposal was rejected by a vote of 166-176 with five abstentions.
• Spain has not passed a new budget since 2023 because the minority coalition lacks sufficient support in a fragmented parliament. Instead, it has rolled over the 2023 accounts for three consecutive years.
• The failure to secure backing from the conservative People’s Party (PP), far-right Vox, Catalan separatist party Junts and hard-left Podemos underscored the government’s challenges to break the parliamentary deadlock and restore a normal budget calendar.
• Some smaller parties that previously helped the government pass legislation have largely written off the remainder of the term, citing the impact of corruption investigations on the ruling Socialist Party.
• Prime Minister Pedro Sanchez has repeatedly vowed to serve out the legislative term despite growing pressure from the opposition to call an early election. If he does so, Spain’s next general election must be held no later than August 2027.
• Lawmakers did, however, approve separate government measures aimed at shielding consumers and businesses from the economic impact of recent international conflicts.
(Reporting by Emma Pinedo and Charlie Devereux; Editing by Cynthia Osterman)
