Spain’s minority coalition government between the PSOE socialists and Sumar left-wing has reached a deal with the Catalan pro-independence party, Junts per Catalunya (JxCat), to approve several economic measures in parliament that were voted down last week. ALSO READ: Transport discounts and pension increases voted down in Spanish Congress.
The agreement could finally bode well for this year’s budget bill, which is yet to be presented by the administration of Prime Minister Pedro Sanchez (main image). In the meantime, the country is rolling over its spending plan from 2023, as it did last year.
Sánchez said the new draft decree with its Catalan ally includes an increase in pensions by 2.8%, according to 2024’s inflation, relief funds for the Valencia area that suffered from deadly floods in late October, and a six-month extension of public transport subsidies, which were all part the overall ‘omnibus’ bill rejected by parliament last week. JxCat had voted with the right-wing People’s Party (PP) opposition and far-right Vox group against the bill last week.
Other laws among the 29 measures in the new decree also include banning evictions to vulnerable families, with the state paying compensation to owners.
The agreement between both parties arrived minutes before the weekly cabinet meeting, held on Tuesdays, which was delayed to have room for negotiating.
‘We’ve sweated until the very end and ultimately, things are moving ahead for the benefit of the social majority … Dialogue, negotiation and agreement are the signs of identity of my governments,’ Sánchez told reporters, expecting the legislation to be approved by a sound majority.
In a statement, JxCat confirmed the agreement, but said it excluded all tax measures – which would be ‘negotiated further down the line’.
Fiscally conservative JxCat has opposed the extension of a windfall tax on energy companies, among others, arguing that the levy impacted investments in the wealthy Catalonia region.
Sánchez’s centre-left administration faces a balancing act in every vote as it weighs concessions to parties from across the spectrum with opposing demands, such as hard-left Podemos and centre-right JxCat.
JxCat leader Carles Puigdemont earlier this month said his party would not support the government unless a ‘trust crisis’ between them was resolved.
In December, JxCat introduced a measure urging Sánchez to submit to a motion of confidence, which he initially dismissed, as the prime minister can constitutionally choose to ignore parliament’s non-binding request.
Tuesday’s deal with the Catalan party contemplates the lower chamber debating the initiative requesting that Sánchez be held to the confidence motion.
Asked if he would submit to such a motion, Sánchez said he saw ‘no need to do so’.
El Gobierno ha aprobado un nuevo Real Decreto Ley Social que contiene la práctica totalidad de las medidas del escudo social aprobado en diciembre.
Un total de 29 medidas, que incluyen:
➡️ La revalorización de las pensiones conforme al IPC
➡️ La mejora de las pensiones mínimas… pic.twitter.com/fwu1nsf4yf— Pedro Sánchez (@sanchezcastejon) January 28, 2025
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