Overview
- The Council of Ministers approved the spending ceiling and stability targets this week, a required procedural step that allows the government to draft and present the 2027 General State Budgets.
- The Economy Ministry will send a detailed draft of a new autonomous financing model to regional governments between Wednesday and Friday and has scheduled a technical meeting for July 14 to discuss it.
- Regional governments run by the People's Party have formally rejected the reform as a bloc and the government is trying to win them over individually before a July 29 Consejo de Política Fiscal y Financiera vote.
- Junts has said it will not enter budget talks unless a long list of demands — including payments it says are owed, Catalan language status in the EU, immigration powers and amnesty measures — are met and Podemos has warned it will oppose large increases in defence spending.
- If the budgets proceed they would raise spending about 6.6% to a record €226,032 million with bigger allocations for housing, scholarships, care and research, a package that shapes services for citizens and recalibrates political incentives ahead of 2027 elections.