Spain's Government Faces Crucial Plenary Session Amidst Legislative Challenges
On Wednesday, Spain's Government will encounter its first significant test of 2025 when the Congress of Deputies convenes for a pivotal plenary session. This extraordinary meeting is called to ratify three essential decrees: pension reform, a special tax on large energy companies, and an omnibus decree featuring benefits such as reduced public transport fares and pension revaluation. Given the significant legal setbacks faced by the Government last year, this session stands as a crucial barometer of its strength and the loyalty of its coalition partners ahead of forthcoming Budget negotiations.
Of the three proposed decrees, the special tax on large energy companies is widely anticipated to be rejected. The Popular Party (PP), the Basque Nationalist Party (PNV), and Junts have previously blocked this measure, which the Government has attempted to revive to appease leftist allies ERC, Bildu, BNG, and Podemos. Internal sources from the Executive are skeptical about the tax's passage, suggesting a defeat is almost a foregone conclusion, which could prompt dire repercussions for the Government. Podemos has already signaled that failure to pass the tax will sever its support in Budget negotiations.
The pension reform—an agreement forged between unions and employers—appears to carry stronger backing, notably from the PP, which has indicated conditional support based on the content rather than the process of implementation. Alberto Núñez Feijóo, the PP’s president, expressed that union and employer consensus acts as sufficient endorsement for their support, potentially ensuring the decree’s passage despite criticisms voiced by leftist parties about certain incentives within the reform.
The status of the omnibus decree remains uncertain as well. This measure includes significant provisions such as an extension of public transport subsidies and protections for vulnerable consumers against utility disconnections. Both the PP and Junts have yet to clarify their stances on this decree. Recently, Minister of the Presidency, Justice and Relations with the Courts, Félix Bolaños, emphasized open lines of communication with Puigdemont’s team to seek common ground and solutions, citing that citizens elect political parties to enhance their living conditions rather than undermine them.
The Government anticipates it would be politically challenging for the PP to vote negatively on provisions aimed at increasing pensions and addressing public transport aid. There is a prevailing sentiment within the PP that a negative vote on pension increases could be politically damaging, yet internal conversations indicate a preference for abstention rather than outright support to avoid appearing complicit with Sánchez’s administration.
In addition to deliberating on the three decrees, the plenary will also address a request to investigate José Luis Ábalos concerning his suspected involvement in the Koldo case, as referred by the Supreme Court. The former PSOE deputy has called for a postponement of this vote until the regular legislative session resumes in February. Furthermore, the Permanent Deputation of Congress will decide whether to summon four ministers for urgent appearances to address various pressing issues, including discussions about the future of the General Mutual Fund of Civil Servants (MUFACE) and the ongoing situation pertaining to the National Center for Oncological Research (CNIO).
As the Government navigates potential legislative hurdles, the outcomes of these discussions are expected to significantly influence Spain's political landscape going forward.
Related Sources: