Spain's coalition government is grappling with internal divisions as it attempts to push through a comprehensive fiscal reform.

The proposed changes, which include increased taxes on diesel and extraordinary levies on banks and energy companies, face significant opposition from both left and right-wing allies.

The rejection of a diesel tax hike by the Finance Committee has already put €1,000 million in potential revenue at risk.

With a crucial vote scheduled for Thursday, the government is under pressure to reconcile differences among its partners, including the PNV, Junts, ERC, and Podemos.

Failure to pass the reform could jeopardize €7,200 million in European funds, contingent on fiscal changes approved by Brussels.

Prime Minister Pedro Sánchez remains optimistic, emphasizing the government's ability to form parliamentary majorities despite the challenges posed by political fragmentation.