The Congress has rejected the deficit path with 178 votes against and 172 in favour. The Government will have to redefine the stability targets for the autonomous communities and delay the processing of the General State Budgets for 2027.
The Plenary of Congress rejected this Tuesday the public deficit path proposed by the Government for the period 2027-2029, with votes against from PP, Vox and Junts. The vote, which recorded 178 'noes' against 172 'yeses', nullifies the budgetary stability targets that were to serve as the basis for the General State Budgets for 2027.
A fiscal margin of 5.849 billion at stake
The rejected path set a combined deficit of public administrations of 1.8% of GDP in 2027, which would reduce to 1.6% in 2028 and 1.5% in 2029. Of that figure, the Central Administration would assume the largest share (1.5%, 1.4% and 1.3%, respectively), while the autonomous communities were granted a maximum deficit of 0.1%, which translates to a fiscal margin of 5.849 million euros.
The Minister of Finance, Arcadi España, defended the proposal during the debate, stating that it gives the autonomous communities “more than 5.800 million of fiscal margin” and urged the groups to “act responsibly thinking of the general interest”. “These are good accounts for the autonomous communities and municipalities, they are good for our public finances and for our country,” he emphasised.
Reasons for rejection: spending rule and territorial grievances
The PP deputy José Vicente Marí Boso described the path as a “trick” and argued that, despite the margin of 5.800 million, the communities will not be able to spend it due to the restrictions of the spending rule. Marí condemned the Government's “fiscal irresponsibility” for “losing control” of the spending rule, not having approved new Budgets in the legislature, and having impoverished the population, so that “eight million Spaniards depend on subsidies or very precarious wages”.
For his part, the deputy spokesperson for Junts, Josep Maria Cruset, justified the vote against, stating that the path harms Catalonia: “Of every hundred euros of deficit distributed to the communities, Catalonia gets one”. Cruset described the proposal as a “scam for Catalonia” and warned that the Government cannot count on Junts' seven votes. He also labelled the budget processing as a “marketing operation” and “theatre” to “cover up the weaknesses” and “corruption cases” of the Executive.
From Vox, the deputy Figaredo added his vote against, without the party providing additional details on its position.
Immediate consequences: the 2027 Budgets in limbo
The rejection of the deficit path forces the Government to redefine the stability targets for the autonomous communities, delaying the processing of the General State Budgets for 2027. The Executive will now have to negotiate a new fiscal roadmap that can gain the support of the majority in the Chamber, a complicated scenario given the parliamentary fragmentation.
For the autonomous communities, uncertainty is at its peak: without approved deficit targets, they cannot plan their own budgets or know what spending margin they will have. Municipalities are also affected, as they depend on the same stability path.
The Government will have to decide whether to present a new deficit path in the coming weeks or opt to extend the 2026 Budgets, which would maintain the fiscal status quo but prevent any increase in public spending. The final decision will depend on Arcadi España's ability to forge alliances with parties like the PNV or ERC, which have not yet commented on the rejected path.
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