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Sánchez Says Budget Defeat Could Have Consequences as Government Readies Spending Plan

The path to passage runs through rebuilding ties with Junts under ERC’s demand for a prior financing pact.

Overview

  • Sánchez will present state budgets after a two‑year hiatus despite uncertain votes, shifting tone by warning a failure “could have consequences.”
  • The finance ministry aims to unveil a new regional financing model in January, followed by the formal presentation of the budget bill.
  • ERC states it will only negotiate the accounts once a financing agreement is closed, pressing the government to sequence concessions.
  • The executive has made gestures to re‑engage Junts, yet chances of their backing the budgets are described as remote for now.
  • Urgency grows to pass structural reforms needed for the final EU funds disbursements, while Puigdemont’s return is not expected before March–April 2026.