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Thursday, May 08, 2025

Spanish Government Faces Critical Parliamentary Votes Amidst Economic Challenges

Spanish Government Faces Critical Parliamentary Votes Amidst Economic Challenges

Upcoming votes on tariffs, working hours reduction, and nuclear energy policy highlight the government's parliamentary fragility and inter-party negotiations.
The Spanish government is grappling with significant parliamentary challenges this week, influenced by the recent impacts of an electrical blackout and disruptions in the railway system.

Prime Minister Pedro Sánchez will address a critical parliamentary session where his government's strategies regarding military spending and the handling of the blackout are set to be scrutinized.

However, no immediate votes will directly threaten the government’s stability on these issues.

Three upcoming votes pose notable uncertainties for the government, with varying degrees of potential political impact.

The first key vote is the ratification of a decree aimed at countering the economic effects of tariffs imposed by the United States under the Trump administration.

The support of Junts, a Catalan political party, is crucial as the government has failed to secure backing from the Popular Party (PP), while Podemos has announced its intention to abstain.

The vote is scheduled for Thursday in the Congress of Deputies.

Podemos stated it would abstain, deeming the decree insufficient and expressing opposition to the increase in military expenditure.

This abstention from Podemos may alleviate some pressure on the government, as it shifts the outcome's fate largely to Junts.

Ione Belarra, the Secretary-General of Podemos, articulated her party's concerns through social media, linking the decree to the military rearmament plan they oppose.

She asserted that Podemos would support the decree only under specific conditions, such as the expropriation of U.S.-owned investment properties in Spain to tackle housing issues.

Government sources convey optimism that Junts will ultimately lend their support, wary of aligning their opposition with the PP and Vox, a party that supports Trump.

Podemos representatives have stated they are not negotiating any terms with what they term the 'government of war' and will evaluate topics on a case-by-case basis.

The second important vote concerns a proposed reduction in working hours, which is slated for later.

Junts has indicated plans to submit a total amendment when the legislation is presented for debate in Congress, which is anticipated within a month.

The reform put forward by Labor Minister Yolanda Díaz was approved by the Council of Ministers on Tuesday.

The proposal now awaits its initial discussion in the Congress, where the support of Junts will be vital for advancing to the committee stage in the next parliamentary session.

Discussions are ongoing as the government aims to negotiate terms with Junts to facilitate the bill's progression, potentially including amendments related to business support and extended implementation timelines.

Currently, Junts maintains a stance against the proposal, in alignment with business associations, prompting a cautious outlook from government officials.

The third vote, taking place on Tuesday, will address a non-binding proposition originating from the PP, likely gathering support from Junts and possibly ERC, seeking to maintain operational nuclear power plants.

The current government strategy aims for the gradual decommissioning of nuclear facilities, with planned closures scheduled from 2027 to 2035, starting with the Almaraz I plant.

The timeline indicates that in Catalonia, no actions are to commence until 2030, implicating the next parliamentary term.
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