The Spanish government is poised to secure approval for its tariff decree in Congress on Thursday, responding to the trade war instigated by the Trump administration.

In a move anticipated to ensure the measure's passage, the left-wing party Podemos declared its intention to abstain, which will provide the necessary votes to prevent the decree from falling.

The Popular Party (PP) has confirmed its opposition to the legislation, having previously ended negotiations with the government.

With support from leftist groups and Junts, the fate of the decree hinges on Podemos's stance, which it has labeled ‘insufficient’ and has conditioned its support on demands for the expropriation of properties owned by U.S. investment funds in Spain.

The PP initially showed willingness to negotiate following the onset of Trump's trade offensive, leading to a brief period of collaboration that deteriorated when Junts publicly backed the government's measures, prompting the PP to describe this agreement as a 'separatist quota'.

The text negotiated with Junts stipulates that the distribution of governmental measures intended to counterbalance tariffs should respect territorial balance.

The PP's formal confirmation of its opposition was made on Monday after a month of discussions.

This announcement was delivered by Juan Bravo, the party's economic spokesperson and a negotiator with the Ministry of Economy.

In a press conference, Bravo criticized the government for rejecting PP proposals, which he deemed as 'inadequate'.

He stated, 'If PSOE does not want to accept the proposals from PP, it will clearly not have our support and will face a negative vote on this Royal Decree Law.'

Bravo further expressed dissatisfaction, noting, 'As of today, there is no known plan from the government.

They propose debt and loans, but not a plan.' Previously, Alberto Núñez Feijóo, the PP leader, acknowledged certain positive aspects of the government's decree but called for improvements, alongside multiple meetings with Economy Minister Carlos Cuerpo to discuss their proposals.

The PP sought the involvement of autonomous communities in the reallocation of Next Generation Funds, a redesign of the Plan MOVES III (for Efficient and Sustainable Mobility Incentives), and a clear specification of conditions related to guarantees and credits for affected enterprises.

As negotiations continued, the political climate shifted, leading the PP to harden its stance, introducing conditions unrelated to tariffs, such as prolonging the operational lifespan of nuclear power plants—an initiative the government opposed.

Following recent events, senior PP officials conceded that circumstances have changed, intensifying the divide with the government, thereby leaning towards a firm no.

Initially considering a critical abstention, Feijóo eventually mandated a negative vote, despite previously advocating for national unity in response to Trump’s tariff war.

'We must act together as Spaniards and Europeans.

We are facing serious issues of state,' he had asserted.

Ione Belarra’s Podemos party, which initially kept its voting intentions under wraps, clarified its position through spokesperson Pablo Fernández, who expressed the need for a more robust response.

Podem's final stance is that it will only support the decree if it includes provisions to expropriate U.S. investment fund properties, asserting this would provide a direct challenge to Trump's economic interests while addressing Spain’s housing issues.

Belarra criticized the coalition's plan as failing to protect the productive fabric of the economy and increasing dependence on the United States.

The financial package under consideration is valued at €14.1 billion and aims to mitigate the impact on the most exposed sectors while modernizing the country’s productive structure in response to the crisis.

Minutes before these developments, Fernández admitted that the government had not contacted Podemos for negotiations, although Economy Minister Cuerpo had previously engaged in virtual meetings with party representatives.

The four Podemos deputies have previously played a crucial role in critical votes, often leading to last-minute negotiation efforts with the government.

For instance, their stance previously resulted in the collapse of a decree related to unemployment benefits for individuals over 52 years of age.

In Barcelona, during the opening of the annual meeting of the Cercle d’Economia, Prime Minister Pedro Sánchez called on various political groups to support the decree and urged the PP to 'stop making excuses' and take a stand for their country, its businesses, and workers in this 'critical' moment.

Additionally, Sumar spokesperson Ernest Urtasun echoed the call for responsibility among all parties, particularly urging the PP to prioritize national interests over partisan agendas.

He noted the government's appropriate and swift reactions to the tariff plan, stating, 'It is not serious to link the vote on this decree to the extension of nuclear power plant operations.

This is out of place.' Urtasun emphasized that those opposing the decree would have to explain their stance to the public.