Spanish Congress Rejects Deficit Path Again, Clouding 2027 Budget Prospects

For the third consecutive year, the Spanish government's deficit path has failed in Congress, marking the second rejection in two weeks. The stability path for 2027-2029 was voted down by 176 votes against from PP, Vox, Junts, and UPN, with Podemos and Compromís abstaining Source: ABC; El Mundo. Despite this, the government can still present the 2027 budget in October using the deficit target of 1.8% of GDP already agreed with the EU Source: Infobae; La Vanguardia.

What was rejected

The proposed deficit for all public administrations was 1.8% of GDP in 2027, 1.6% in 2028, and 1.5% in 2029 Source: ABC. For regional governments (autonomous communities), the plan allowed a 0.1% deficit margin, worth €5.849 billion in extra spending capacity over three years. That margin is now lost, and regions must aim for balanced budgets Source: Infobae; ABC.

Political reactions

• Hacienda Minister Arcadi España urged the opposition to reflect, saying their rejection "ends up translating into fewer resources for the territories they govern" Source: Infobae.
• PP deputy José Vicente Marí called for elections and accused the government of "maintaining the farce" of an unviable legislature Source: ABC.
• Junts criticized the lack of new proposals and noted that Catalonia receives less investment despite high tax contributions Source: Infobae.