Overview
- The Council of Ministers approved a 2026 non‑financial spending ceiling of €216.167 billion including €4.151 billion in EU recovery funds, or €212.026 billion excluding them, an 8.5% rise versus 2025.
- The plan targets deficit reduction from 2.5% of GDP in 2025 to 2.1% in 2026, 1.8% in 2027 and 1.6% in 2028, in line with Spain’s medium‑term framework agreed with the European Commission.
- The ceiling includes a €23 billion transfer to Social Security to help cover rising pension costs.
- Only the fiscal targets require a congressional vote; if rejected, the government must resubmit within a month, and it warns regions would face adjustments of €1.755 billion in 2026 and €5.485 billion across 2026–2028.
- Provincial and municipal budgets are advancing under the new framework, including Córdoba’s consolidated plan near €600 million, Toledo’s provincial budget of €199.47 million with about half for investments, and approvals in Silla, Puçol, Alcantarilla and Xàtiva reflecting tax freezes, investment pushes and targeted debt control.