Governance in the State

Sánchez approves a new social safety net that will need congressional approval

The last cabinet meeting of the year will also approve the increase in pensions and the freezing of self-employed social security contributions.

23/12/2025

MadridA year ago, the Spanish government approved its annual sweep of social and economic measures in the Council of Ministers meeting—the last meeting of the year—covering all those measures that would expire on December 31st but which it wanted to keep in effect, either because they were part of an agreement with a political party or because it had made a commitment to the public. Given the nature of these measures, Pedro Sánchez's administration had always faced the subsequent legislative process in Congress with relative ease. But last year he also saw how he could not take for granted the support of the parties in the investiture bloc.Starting with Junts, which initially even distanced itself from the pension increase.

This year the scenario is not only repeating itself, but has even become more complicated. The always fragile relationship between Sánchez and the parties that brought him to power is compounded by the low point marked by cases of alleged corruption and sexual and workplace harassment that are plaguing the Spanish president's inner circle. Although the partners are not breaking up, except for Junts, with whom the PSOE is unsuccessfully trying to rebuild the relationship, they are putting more pressure on him every day. In this context, Podemos, for example, is distancing itself by the minute. And although with EH Bildu There is an agreement to extend the social shieldThe Basque Nationalist Party (PNV) has already amended it.

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Tuesday's Council of Ministers meeting –The first one with Elma Saiz as the new spokesperson– will approve, among other things, the so-called social shield, but also a 2.7% increase in contributory pensions in 2026, as well as minimum and non-contributory pensions, a freeze on current self-employed social security contributions, an extension of the current minimum wage while awaiting a new agreement, and a subsidy. Uncertainty remains regarding measures that the two coalition parties, PSOE and Sumar, were still negotiating this Monday, such as an automatic extension of rental contracts expiring in 2026, thus preventing landlords from raising the rent.

Last year, the Spanish government learned its lesson when it presented all the measures in a 140-page omnibus decree to Congress. Neither Junts, PP, nor Vox hesitated to vote against it and derail the decree. The first two were open to supporting some proposals as long as they were broken down into smaller parts, meaning separate decrees were passed for each item. Now that relations with this blog are more strained, we'll have to see what strategy the Moncloa Palace adopts. Added to all this is the pressure from the Sumar faction within the PSOE to be "more ambitious" on the social agenda.

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