The Spanish government is focusing on the anti-war plan and cooling down the budget.

MadridThe war in the Middle East dominated a question time session in the Spanish Congress, with all eyes on Friday, when Spanish Prime Minister Pedro Sánchez will have to detail the measures to mitigate the economic effects of the conflict. This emergency plan is currently the Spanish government's top priority, to the point that it has put on hold the possibility of presenting this year's budget during the first quarter, as the Treasury had previously promised. In a press conference after meeting with the President of Ukraine, Volodymyr Zelensky, Sánchez has left the presentation of the budget this month up in the air due to "the gravity of the international situation." In fact, he has considered it one of the "worst crises" of his term. Currently, Sánchez lacks the necessary support to pass a budget and is governing with the budget extended from 2023. To fulfill his previous commitment, the budget would have to be presented next week—when Sánchez appears to explain his position on the Iran war—or during Holy Week. Afterward, it is highly likely that the Minister of Finance, María Jesús Montero, will leave the government to run in the Andalusian elections, which Juanma Moreno Bonilla must call (May 31 or June 21 are being discussed, as the Pope is visiting Spain the week of June 6-12).

However, the Spanish government also has no guarantee of votes in Congress for the aid package to address the Iran war crisis and is keeping the specific list of measures it will include tightly sealed. Although This Tuesday, they were already warning from Moncloa Palace. While the emergency plan would not be generalized—but rather targeted and focused on the most affected sectors—tensions within the multinational majority regarding its inclusion were already evident this Wednesday. Although the Basque Nationalist Party (PNV) has demanded tax cuts and insisted that it not be mixed with other "extreme" or "ideological" measures, Podemos is urging the government to cap the prices of food, rent, mortgages, and energy. Sumar, a coalition partner, is also pressuring the Socialist Party (PSOE) to incorporate the housing issue, which divides the majority in Congress, into the decree-law. Sánchez has not yet specified the emergency plan (he will detail it himself on Friday and wants to await the conclusions of the European Council meeting this Thursday), but he has committed to negotiating measures to protect the most vulnerable. He has, however, called for responsibility in the face of the situation. It is expected that after the decree-law is approved on Friday in the extraordinary Council of Ministers meeting, its ratification will be voted on next Thursday in the Spanish Parliament. Sources at Moncloa Palace confirm they are in talks with all political groups and admit they have to perform a "balancing act" to secure the necessary votes: "We have to find the magic formula."

Division within the coalition

Before the plenary session began, the Minister of Social Rights, Pablo Bustinduy, reiterated the demand to extend rental contracts. "We've been fighting for months for this extension; it's a common-sense measure," he argued when asked about the issue. He also lamented the misgivings shown by the PSOE (Spanish Socialist Workers' Party) from the outset. "We won't draft a decree law only to have it rejected," said the First Vice President, María Jesús Montero, in a statement to the media. Two ministers even contradicted each other live on air: leaving the chamber, journalists asked the Minister of Health and leader of the Sumar coalition, Mónica García, if the decree law would include housing, and she confirmed it would; meanwhile, the Minister of the Presidency, Félix Bolaños, who was standing next to her, replied: "It's not so certain."

The Socialist Party wants to prioritize "consensus" and understands that if housing-related issues are included in the decree, Junts or the PNV will likely be left out of the majority. "Don't gamble this time," warned Maribel Vaquero, spokesperson for the Basque nationalists, "negotiate," because, she said, many families and self-employed workers depend on it. Both the PNV and Junts have presented their own measures to address the effects of the war, based on reducing VAT to 5% for essential energy supplies; a general deflation of personal income tax to combat inflation; and the reinstatement of the Iberian exception to limit gas prices, aid for supplies for the most vulnerable families, and fuel price subsidies for certain sectors. From Junts, MP Josep Maria Cruset urged the PSOE to put these measures on the table if they want their support, and issued a warning: they shouldn't mix measures to mitigate the effects of the war with the extension of rental contracts, because it will be defeated.

However, Podemos and Bildu are demanding the exact opposite. Ione Belarra demanded that Sánchez make "no to war" a reality and close the Rota and Morón air bases, expel the US military from Spain, and withdraw from NATO. "Working people shouldn't pay for the war; Repsol should pay for it," she asserted, adding that the situation won't be resolved by lowering taxes: "The market needs to be regulated." Along the same lines, Bildu spokesperson Oskar Matute, in a question to the Minister of Finance, María Jesús Montero, said: "Don't be afraid of the right wing, we must reinstate the energy tax [...]. These are extreme measures, yes, but extremely necessary."

Sánchez asks the PP to clarify its position on the war

The tensest exchange of the question time session, however, was—as usual—between Sánchez and Feijóo. Faced with accusations of being a "loser" from the Popular Party leader due to the PSOE's poor showing in the regional elections, the Spanish president touted the "consistency" of his foreign policy and criticized the PP for not clarifying its position on the war in Iran: "You can't support those who start the fire and then complain about the effects. Correct yourself," said Sánchez, who reproached the PP for not standing up to Trump. "You say yes to war and no to aid," the Spanish president concluded. Feijóo said that if the Spanish government wants the support of the Popular Party, it shouldn't mix measures to address the war in Iran with other issues: "Don't even think about including these measures in an omnibus decree," he warned. And he urged him to "do the right thing" and "copy the measures" that the PP presented days ago, such as lowering income tax, the VAT on energy, taxes on all fuels, and professional diesel. "The majority of Spaniards don't want war; what we do want is for you to leave us in peace," he concluded.