Overview
- Spain is still running on a budget rolled over from 2023 after the government let its first‑quarter target for a 2026 plan pass without a draft.
- After the Iran war broke out on February 28th, the cabinet paused the timetable and launched an emergency package worth about €5 billion with 80 measures, mainly tax cuts.
- Congress validated the decree that carries the package, winning support from Junts as Podemos abstained, and the measures are set to last three months.
- New ministers Carlos Cuerpo and Arcadi España say they will deliver a budget this year, though they have set no date while they rebuild the macroeconomic forecasts.
- Government spokesperson Elma Saiz said prorogued accounts are not blocking action and that the stopgap aims to ease costs for about three million companies and 20 million citizens, even as fragile alliances with Junts and Podemos cloud the path to a full budget.