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Congress Rejects Government’s Fiscal Stability Path, Blocking Step Toward Budgets

The vote raises the risk that Madrid will fail to pass next year’s State budgets and could force Prime Minister Pedro Sánchez to call early elections.

Overview

  • The Congress voted on Tuesday, July 14 to reject the government's 2026–2028 'senda de estabilidad' after PP, Vox, UPN and Junts cast the decisive no votes.
  • The 'senda' sets deficit targets and is a procedural prerequisite for drafting the State budgets so its rejection forces the government to revise and resubmit its fiscal roadmap.
  • Finance Minister Arcadi España defended the plan as protecting the welfare state and said it would provide about €5.8 billion extra to autonomous communities over three years.
  • Junts repeated past rejections, calling the proposal an 'estafa' for Catalonia and pressing for higher regional deficit allowances while the PNV voted yes but demanded a clear election timetable and warned a more restrictive fallback path would apply if the senda falls; key government figures including Pedro Sánchez were absent from the Hemicycle during the vote.
  • If the budgets later fail in Parliament the precedent is that the prime minister may dissolve the Cortes and call snap elections, a step that would affect public spending plans and regional funding ahead of municipal and regional votes.