The Partido Popular (PP) announced its intention to bring a constitutional challenge against Pedro Sánchez, the Prime Minister of Spain, for failing to submit the General State Budgets.

Led by Alberto Núñez Feijóo, the party will await compliance from all autonomous communities under its governance before filing the complaint.

Sources within the PP indicate that they plan to present this case to the Constitutional Court within the next 15 days, contingent on two conditions: that the PP-led communities submit their budgets and that Sánchez does not do so, a scenario deemed likely by the party.

In recent developments, officials from the Ministry of Finance suggest that expectations for the submission of the General State Budgets are low.

Many believe that discussions have dwindled, except for María Jesús Montero, the Minister of Finance, who still holds out hope for an agreement that would facilitate a budget extension into 2026, replacing the current budgets from 2023, which are considered outdated.

The spokesperson for the Executive, Pilar Alegría, reiterated this morning that the government will not present the budgets to the lower house of parliament if no agreement is reached, labeling such an action as a 'waste of time.' The Minister of the Presidency and Justice insisted on the same sentiment, referencing the constitutional provision that allows for the extension of the existing budget in the absence of a consensus on new proposals.

Spain has been operating under the 2023 budgets approved in 2022, which no longer align with current fiscal needs and priorities.

Alegría characterized the constitutional duty to present the General State Budgets — already overdue — as not aligned with practical governance needs.

Historically, Pedro Sánchez has advocated for the constitutional responsibility to present budgets even in disagreement, having previously called elections in 2019 based on similar grounds.

Currently, however, the government appears to prioritize other considerations over this obligation, as there are concerns about the potential electoral fallout for the Spanish Socialist Workers' Party (PSOE).

In addition, the government faces challenges related to increases in defense spending.

Despite Sánchez's appeals, the European Union has shown reluctance to permit debt accumulation or utilize contingency funds for this expansion.

The necessity of boosting defense expenditures is expected to rely heavily on each nation's discretion, complicating negotiations for the Minister of Finance.

Should the PP's assertions prove accurate and the government fails to present the required budgets, it will result in the absence of new fiscal plans, further complicating Spain's economic management in the near term.

The situation necessitates intense political deliberation, particularly in Congress, where the government's position may face significant opposition.