Spain's Political Landscape Shifts as Legislative Challenges Loom Ahead

As Spain transitions back to routine following the holiday season, the political arena is set to heat up, particularly for President Pedro Sánchez and his government. The legislature is approaching a defining phase with critical votes on the horizon in Congress, aimed at enacting laws that will shape the final stretch leading to the general elections of 2027. Among the key legislations to be addressed is the budget law, alongside significant reforms such as the reduction of working hours and the controversial Bolaños Law focused on reforming judicial access. In the current fragmented political context, the government's ability to secure necessary votes hinges greatly on the demands from its parliamentary partners, who leverage their support in exchange for concessions. ### Budget Law The Sánchez administration has already postponed the budget for 2023 twice, and for 2024, it chose not to present any new budget due to the upcoming Catalan elections. Complications were further exacerbated by the current position of parliamentary partners making any approval seem unlikely at this juncture; in fact, new budgets haven't even been presented yet. First Vice President and Minister of Finance María Jesús Montero has stated that the budgets for 2026 will reach the Lower House, with hopes of garnering support from a parliamentary majority. However, this is anticipated to be a challenging endeavor. Carles Puigdemont's party has underscored that they will not negotiate unless the unexecuted budget items from previous years, amounting to 50 billion euros, are addressed. Similarly, ERC (the Catalan Republican Left) emphasizes the need to settle longstanding financial matters like the unique financing system for Catalonia. Podemos has stated they will not lend their vote unless serious conditions are met: a 40% reduction in rent prices, a halt to the increase in defense spending, and a severing of diplomatic ties with Israel. Meanwhile, only Bildu seems prepared to support Sánchez's budgets, viewing it as a necessary act of faith to ensure the legislature progresses. ### Debt Forgiveness In a further legislative move, María Jesús Montero has also confirmed that the Council of Ministers plans to approve a draft law aimed at forgiving 85 billion euros in debt owed to the autonomous communities. This measure will subsequently go to Congress for approval, but its status as an organic law means it requires an absolute majority—an uphill battle given reservations from parties like Compromís and Chunta who find the proposal inadequate and are already signaling their withdrawal of support. Junts also criticized the plan, seeking a tailored solution that favors Catalonia specifically. ### Working Hour Reduction The reduction of working hours, promised by Second Vice President and Minister of Labor Yolanda Díaz, is intended to bring the workload down to 375 hours over the course of this legislature. However, negotiations with Sánchez’s PSOE have proven strenuous, with Junts indicating their unwillingness to support the regulation unless their concerns are addressed. Despite the challenges, Sumar remains optimistic about changing Junts’ stance. Amid ongoing debates, the vote on this issue has been postponed until fall, influenced by the controversies surrounding the Cerdán case, though support from several parties including the PNV has been noted. ### Bolaños Law The Bolaños Law, which pertains to judiciary access reform, also remains in jeopardy because of the need for Junts's votes. Their demands, which include closing the National Court and establishing a Catalan CGPJ with significant powers regarding judicial management, are seen as prohibitive by many observers. ### Other Stagnant Laws Currently, the government is managing up to 43 bills in Congress, many of which have faced delays since 2024, including a family law aimed at recognizing diverse family structures and improving social protection. Other notable pending legislations include the customer service law aimed at enhancing accessibility and efficiency; the Film and Audiovisual Culture Law; and the Sustainable Mobility Law from the Transport Ministry. The Digital Transformation and Public Function Ministry is pushing for a draft law to enhance democratic governance for digital services and media registration, while the Industry Ministry aims to advance its own Industry and Strategic Autonomy Law. Additionally, fundamental reforms related to the Gag Law, the electoral system, and improvements to the National Health System are all on the legislative agenda. As Spain's government prepares for these pivotal votes, it must navigate a complex political landscape filled with varying demands and expectations from different political factions. Related Sources: • Source 1 • Source 2