Spanish government suffers key defeat in Congress over deficit path

The Spanish government lost a crucial vote on the deficit path (senda de estabilidad) in Congress on Tuesday, marking a major setback for its attempt to pass the 2027 budget. The proposal was rejected by 178 votes against, 167 in favor, with 5 abstentions. The opposition parties PP, Vox, and Junts, along with UPN, voted against, while Podemos and Compromís abstained. Source: euronewses

What happened

The deficit path is a prerequisite for drafting the General State Budget. Its rejection complicates the government's goal of extending the legislature until 2027. Source: elespanol The government will have a second attempt on July 23. If it fails again, it can still present a budget using the 2023 spending ceiling, but with slim chances of approval. Source: elpaises

Reactions and disagreements

• Junts justified its vote citing insufficient deficit margin for autonomous communities, calling the proposal "a scam for Catalonia." Source: euronewses
• Podemos abstained, criticizing increased defense spending over social investment. Source: elespanol
• ERC voted "angry" due to Catalonia's underfunding, but left the door open for a change of vote. Source: elespanol
• The PP accused the government of being "harmful for Spaniards," while Vox simply said "don't count on us." Source: euronewses