The Spanish government has reapproved the same fiscal deficit and spending cap plan that was previously rejected by the Congress of Deputies in July.

This move aims to pave the way for the 2025 State Budget.

The plan seeks to reduce the public deficit to 2.5% of GDP by 2025 and maintain public debt above 100% of GDP until 2027. Despite previous opposition from Junts, the government is now appealing to the Popular Party for support.

Failure to pass the plan could force regional and local governments to make significant budget cuts, totaling 11.55 billion euros over the next two years.

The government emphasizes that the central administration will bear most of the fiscal adjustment, allowing regional and local governments to maintain their current financial objectives.