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Sunday, Mar 30, 2025

Spanish Government Declines to Present Budget to Parliament, Citing Lack of Consensus

The administration of Prime Minister Pedro Sánchez opts not to submit the General State Budgets, citing constitutional obligations without agreement.
The government of Prime Minister Pedro Sánchez announced on March 25, 2025, that it would not present the General State Budgets to the Spanish Congress, arguing that to do so without an agreement would be a waste of time.

This decision raises constitutional concerns, as the Spanish Constitution mandates that budgets must be submitted to Parliament.

In the press briefing following the Council of Ministers meeting, Minister of Social Rights and 2030 Agenda, Pilar Alegría, declared, "It must be presented in an agreed manner," emphasizing that submitting budgets without consensus would undermine the parliamentary process and citizens' interests.

Despite previous optimism from Minister of Finance María Jesús Montero regarding reaching an agreement with Junts, the government’s position has shifted decisively against presenting the budgets without bipartisan support.

The administration maintains that there is no possibility for agreement, with key figures in the government echoing a shared narrative that presenting unapproved budgets would simply waste time.

Minister of Presidency and Justice, Félix Bolaños, reiterated that the Constitution allows for the prorogation of budget proposals if consensus is lacking.

Since 2022, Spain has operated under budgets approved for 2023, which have become outdated.

Alegría referred to the constitutional obligation to submit the budgets by the end of the calendar year as a "waste of time," stating that delays mean the budgets may not be enacted on time.

Notably, this marks a significant shift in Sánchez's previous stance, where he upheld constitutional obligations, using them as a basis to call for elections in 2019. Currently, the government appears to prioritize other concerns, suggesting potential electoral repercussions for the PSOE if elections were to occur.

Amidst this political backdrop, the government faces challenges related to defense spending.

Recent discussions within the Ministry of Finance have focused on persuading coalition partners to approve the budgets by year-end, aiming to replace outdated budgetary frameworks by 2026 to facilitate better management of European funds.

Increasing defense expenditures is a pressing issue, with Sánchez advocating for higher allocations, but there is resistance from Brussels on financing these expenses through community debt or contingency funds.

The requirement for elevated defense spending presents complex negotiations for Montero, particularly with coalition partners like Sumar, and could lead to contentious debates within the Congress of Deputies.

A failure to pass the budgets would reinforce the government's position that presenting budgets without agreement is no longer a viable option.
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