The Spanish government faces a critical vote in Congress regarding the deficit targets for autonomous communities and local entities for 2025-2027. This vote is essential for the upcoming State Budget project.

However, the government is uncertain about securing the necessary support, as the same proposal was previously rejected by the opposition parties PP, Vox, and Junts.

If the proposal fails again, it could result in a loss of 12 billion euros in fiscal margin for communities and municipalities over the next two years.

The government is emphasizing the negative impact of this potential loss, particularly on regions governed by the PP, such as Madrid and Catalonia, which could lose over 1,300 million euros each.

The government is urging the PP to reconsider their stance, highlighting that the current proposal offers more fiscal flexibility compared to the previous, stricter guidelines.

Despite the pressure, the PP remains firm in their opposition, suggesting the government negotiate with its coalition partners, including Junts, to pass the budgetary measures.