Spain’s fragile coalition government between the PSOE socialists and the Sumar left-wing umbrella group suffered a significant political setback on Wednesday, after the rejection of a sweeping bill designed to maintain public transport discounts, raise the minimum wage, and increase pensions among numerous other measures impacting millions across the country.
On Wednesday, the Spanish Congress voted down the proposed legislation, commonly referred to as the ‘omnibus’ bill, which encompassed 80 different initiatives.
With headline measures including an increase in pensions for 2025 in line with inflation and the extension of public transport subsidies, the decree was defeated by 177 votes to 171, with one abstention.
This has dealt a major blow to the PSOE-led government of Pedro Sánchez and could affect as many as 12 million pensioners.
The government had deliberately combined the diverse measures into a single proposal to pressure opposition parties into support. However, the bill was defeated by the combined votes of the main opposition party, the right-wing People’s Party (PP), the far-right Vox group, together with the Catalan pro-independence party, Junts per Catalunya (JxCat).
Sánchez’s government will now be forced to issue a new decree to increase pensions, which will need to be negotiated with other parties.
Since the vote on Wednesday, discounts on public transport tickets and passes purchased from Thursday 23 January will no longer apply. Transport Minister Óscar Puente confirmed that the legal framework enabling reduced fares would expire, meaning passengers would have to pay full price for their tickets.
Despite this, some regional governments, including those in Madrid, the Basque Country, Catalonia, the Balearic Islands, and Valencia, announced plans to temporarily maintain discounted fares.
The rejection of the bill highlights the government’s fragile parliamentary position. For two consecutive years, the government has been unable to pass a national budget. Its reliance on the JxCat party, whose seven votes are crucial for legislative approval, has exposed deep political fractures. JxCat, led by Carles Puigdemont, continues to demand further concessions on Catalan autonomy, claiming the government has not upheld its commitments under the amnesty law passed last year. ALSO READ: Controversial Catalan amnesty law gets final approval in Spanish Congress.
Political analysts are divided on the implications of this deadlock. While some suggest JxCat is hardening its stance to strengthen its bargaining power – particularly regarding immigration controls in Catalonia and the recognition of Catalan as an official EU language – others argue that relations between the PSOE and JxCAT are irreparably damaged, paving the way for a gridlocked legislature.
The government has criticised the rejection of the bill, emphasising the repercussions for ordinary citizens. Finance Minister María Jesús Montero accused opposition parties of prioritising political games over public welfare, stating, ‘The real losers here are pensioners and workers.’
The omnibus bill also contained provisions beyond pensions and transport discounts. These included extending loans for those impacted by the Valencia floods and implementing a windfall tax on energy companies – both of which will now lapse as of 23 January. Tax benefits for energy-efficient housing upgrades, as well as incentives for purchasing electric vehicles and charging infrastructure, will also expire.
Additionally, the rejection of the bill means that Spain’s minimum interprofessional wage (SMI) will revert to its 2023 level. The planned extension of the SMI increase for 2024 was part of the legislation and will now be postponed until a new agreement for 2025 is reached. Negotiations on this matter are currently underway within the Ministry of Labour. ALSO READ: Spain to increase minimum wage by 5%, to €1,134 gross, over 14 payments.
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