Everything that derails in Congress due to the State elections

MadridWith the calling of early general elections for November 29th and the dissolution of Congress, all legislative initiatives that were underway in the Spanish lower house will lapse, except for popular legislative initiatives (ILP) and initiatives promoted by the autonomous communities. In this way, reforms that the Pedro Sánchez government itself had promoted will be shelved. Other measures that have not even made it to Congress could pass through the Council of Ministers, but they will not see the light of day — only royal decree-laws that the Permanent Deputation can validate can be approved, where the Spanish government can approve things because the majority is different from that of the full Congress (this could be the case of the two housing decrees that were derailed last week), or ordinary royal decrees (regulations) that do not have to pass through Congress.

Laws in Congress

Economic rules

The debt relief for a portion of the communities' debt linked to the Autonomous Liquidity Fund (FLA) has been deactivated, which in the case of Catalonia meant wiping out about 17 billion euros. The initiative entered Congress in December of last year and was expected to be voted on in one of the first plenary sessions of 2026. It was a measure agreed upon between ERC and the PSOE within the framework of Pedro Sánchez's investiture.

Long before that, the parliamentary process for the reform of the Industry Law had begun —the current regulation is from 1992—. The bill formally entered Congress at the end of 2024. Since then, the regulation has been stalled for nearly two years in the Industry and Tourism Committee due to the constant postponement of amendment deadlines.

Also in economic terms, they see the following derail: the Civil Service and State Administration Law or the law to create a State Public Health Agency.

Social norms

On the other hand, just a week ago, the organic law for the protection of minors in digital environments began its journey. Among other things, it included a reinforcement of access for those under 16 to social networks. The measure, defended by Pedro Sánchez's executive, followed the path of other European countries. In fact, Brussels has just launched a plan for platforms like TikTok and Instagram to be "safe" spaces for minors.

Other social regulations that are now also falling away are: the Vicarious Liability Law, the reform of Article 43 of the Constitution to protect abortion —which opened a direct clash with governments such as Isabel Díaz Ayuso's—, as well as the Families Law. In fact, the latter regulation was already a victim of the 2023 early elections, and the Spanish government reactivated it in 2024. The same applies to the reform of the so-called Gag Law. Finally, the law on the prevention of food loss and waste remains in limbo once again.

Sánchez leaves without a budget

Finally, there are reforms and laws that, despite being commitments of the legislature, will not even have reached Congress. The new regional financing model is the first example. After months of negotiation with ERC and the Generalitat, the new system will now be left in the hands of the next Spanish government. In this way, the model will continue to be the one from 2009, which has been pending an update since 2014.

Added to the model are new general state budgets (PGE)—the next Spanish government will inherit those from 2023 (approved in the previous legislature). Sánchez had committed to exhausting the legislature with new public accounts for at least 2027 on the council of ministers' table. For Sumar, the minority partner, it was an opportunity to once again propose measures such as the universal child-rearing benefit. With the early elections, the term ends without having presented or approved any budget project: neither for 2024, 2025, nor 2026.

Migration policy

Neither will the latest changes in migration matters see the light of day —along with housing, it will be a portfolio that marks the election campaign— promoted following the tragedy in Ceuta. In the first round, two preliminary bills were approved: the reform of asylum and the immigration law to adapt to the new European regulation, which implied a tightening of border control. Finally, the mandatory distribution of unaccompanied migrant minors among the autonomous communities (the reform of article 35 of the immigration law) will remain as it was published in the Official State Gazette (BOE), even though it was being processed in Congress as a bill. Also, the bill for the transfer of immigration powers to the Generalitat, which Junts had registered and was negotiating with the Spanish government to obtain the support of Podemos, will not be processed.