Spanish Congress Rejects Social Shield: Sánchez Government Faces Political Deadlock

The Spanish political scene plunged into a deep crisis after the Congress of Deputies rejected a bill to extend the so-called social shield. The key moment was the vote by the Catalan formation Junts, which, along with the People's Party (PP) and Vox, voted against the government's proposals. This defeat is interpreted as a warning signal for Prime Minister Pedro Sánchez, indicating the extreme instability of his parliamentary support. Government representatives, including Minister Isabel Rodríguez, accuse the opposition of acting against the poorest citizens, while Junts accuses the socialists (PSOE) of waging an "ideological battle" instead of engaging in real dialogue. The consequences of rejecting the decree are immediate and affect the personal finances of Spaniards. Citizens will primarily lose the ability to deduct 15% of expenses for purchasing electric vehicles in their IRPF tax returns. At the same time, the government warns that the failure to extend eviction protections could lead to the removal of nearly 70,000 people from their homes in a short time. In response to this risk, Sánchez's cabinet announced it would seek alternative legal avenues to "revive" the most important elements of the shield without the need for another risky vote on the same bill text. The Spanish parliamentary system since 2015 has been characterized by a lack of stable single-party majorities, forcing major forces to form complex coalitions with regional and nationalist parties.Meanwhile, at the European level, the European Parliament adopted a report on the housing crisis, which directly affects Spain. The document points to a deficit of 10 million homes across the Union, a significant portion of which falls on the Spanish market. MEPs advocate for the introduction of a super-reduced VAT rate for the construction and renovation of properties and a radical simplification of bureaucracy, limiting the time for issuing permits to 60 days. In the shadow of these disputes, final talks on the status of Gibraltar are also underway, with the Spanish Foreign Ministry announcing an agreement before the end of summer. „El Gobierno ha iniciado una batalla ideológica contra Junts tras nuestro 'no' al escudo social.” (The Government has started an ideological battle against Junts after our 'no' to the social shield.) — Míriam Nogueras Meanwhile, at the local level, the dispute over religious symbols has reignited. The authorities of Barcelona rejected a right-wing proposal to ban burqas and niqabs in public spaces, arguing a lack of legal basis and a violation of civil liberties. A completely different decision was made in Toledo, where, thanks to an alliance between Vox and PP, such a ban was passed for public buildings. These contrasts show that Spain remains a strongly polarized country, not only on economic but also on cultural issues.