Spain's minority government suffered a crushing defeat in parliament when the Junts per Catalunya party, together with the opposition right-wing, blocked the extension of the so-called social shield. This decision calls into question eviction protection for thousands of families and the continuation of tax breaks for electric vehicle purchases. Despite the failure of the main aid package, Congress managed to approve the indexation of pensions, which is the only positive note amid the escalating political chaos in Madrid.

Failure of the Social Shield

Parliament rejected a key aid package, threatening a wave of evictions and an end to protection for the poorest energy consumers.

Rebellion of Catalan Allies

The Junts party joined the right-wing in blocking government decrees, confirming the legislative paralysis of the coalition.

Official Pension Increase

Despite failures in other areas, Congress ultimately approved an increase in pension benefits for 2026.

Blow to Electromobility

The rejection of tax breaks for electric cars provoked a sharp reaction from the automotive industry and manufacturers.

The Spanish political scene plunged into deep crisis after a series of votes in the lower house of parliament, which exposed the weakness of the ruling coalition. The key moment was the rejection of the decree on the "social shield," which was intended to protect the most vulnerable citizens from the effects of the housing and energy crisis. Not only did the opposition Partido Popular (PP) and Vox vote against the project, but crucially, so did the Catalan separatists from Junts. The stance of the formation led by Miriam Nogueras is being interpreted as a signal of a complete break in loyalty towards the government of President Pedro Sánchez. The collapse of the decree carries immediate and dramatic social consequences. Experts and non-governmental organizations warn that the expiration of the eviction moratorium could lead to the removal of 60-70 thousand people from their homes in a short time. Additionally, a separate vote led to the rejection of a 15% IRPF tax relief for purchasing electric cars. Representatives of the automotive industry reacted to this decision with great frustration, pointing out that the lack of stable financial incentives will undermine efforts towards transport decarbonization and hurt domestic producers. The government, represented by Minister María Jesús Montero, announced an attempt to renegotiate parts of the solutions, suggesting the possibility of "splintering" the rejected decree into smaller legal acts that would be easier to pass. Spanish politics since the 2023 elections has relied on a fragile alliance between socialists and regional nationalist parties, which historically has often led to legislative paralysis during periods of tension over autonomy issues.The situation was further exacerbated by a political scandal after Cayetana Álvarez de Toledo from the opposition PP demanded the disclosure of the prime minister's medical history. Although part of her own party distanced itself from these words, government media described it as crossing a "red line" and employing disinformation strategies. In the corridors of La Moncloa, the prime minister's residence, the mood is close to resignation, and some politicians openly call the current term "unmanageable." Sánchez's only success remains the official approval of pension increases, which will protect millions of seniors from losing purchasing power in 2026. Nevertheless, without an agreement with the Catalans, the Spanish cabinet may be unable to pass a budget, bringing the country closer to a scenario of early elections. „Hoy se han parado millones de okupaciones” (Millions of squatting cases have been stopped today) — Miriam Nogueras

Mentioned People

  • Pedro Sánchez — Prime Minister of Spain, whose minority government is struggling with a lack of support in Congress.
  • Miriam Nogueras — Spokesperson for the Junts party in Congress, the main architect of the government's defeat in the votes.
  • María Jesús Montero — Deputy Prime Minister and Minister of Finance, announcing attempts to salvage the rejected reforms.