The challenges and dilemmas of the PP and Junts

MadridThe Spanish government's skill in this first part of the year lies in forcing both its partners and the opposition to resolve dilemmas. This applies equally to domestic policy and the international situation. We must go back to last December, to Pedro Sánchez's final press conference and the subsequent Christmas reception at Moncloa Palace, and consider it the moment when many clues were given about the scenario the government would try to create to attempt to get back on track.

A few days later, the PSOE It recorded a disastrous election result in Extremadura And depressive feelings and speculation about the possible early general elections, scheduled for 2027, resurfaced within the Socialist ranks. Sánchez had already stated his intention to govern with or without Parliament, and in this first phase of 2026, he is acting to demonstrate this. He has resumed dialogue with political forces, but largely outside the parliamentary sphere. Discussions with ERC and PNV have been conducted with considerable discretion, up until the moment of announcing the agreements reached. And now we have a new opportunity to lower the tense tone of political life with the meeting this coming Monday between the Prime Minister and the leader of the PP, Alberto Núñez Feijóo.

It is this dynamic and this timetable—which includes, above all, the attempt to reach an agreement— the new model of regional financingThis has placed political forces—especially the PP and Junts—in the aforementioned predicament of having to confront delicate dilemmas, but ones from which they can emerge unscathed if they skillfully resolve them. For Feijóo, it is an opportunity to resume his initial strategy, the one he announced when he arrived in Madrid, elected by acclamation to his party as the leader capable of leading the Popular Party to a new conquest of power. Since taking office, Feijóo has evolved from initial promises of moderation toward an increasingly aggressive exercise of opposition, centered on the idea that the method for winning elections is to wear down the government and ultimately bring it down. Undoubtedly, he has achieved success in this endeavor, as evidenced by the legal proceedings the Socialists have pending this year. But something more is needed to reach La Moncloa (the Prime Minister's residence). He must acquire a proactive and governing profile to generate trust, and the Popular Party leader has not seized the opportunities to leverage this. If we were to conduct a poll on which phrase best summarizes the PP's objectives, "repeal of Sánchez's policies" would surely win.

The Sánchez-Feijóo clash

This way of understanding the role of the opposition and the famous wall erected by Sánchez to combat the PP have prevented any rapprochement, except for negotiating the renewal of the General Council of the Judiciary, five years after its term ended. The Socialist leader is convinced he has a certain advantage, especially in the clashes on the floor of Congress. He himself told Feijóo he was a "bad parliamentarian" in one of the recent question time sessions. All of this has created an atmosphere of permanent hostility.

It is therefore unlikely that any concrete agreements will emerge from the aforementioned meeting between the Prime Minister and the Popular Party leader. But for Feijóo, the dilemma exists. I am referring to the possibility of opting, in this final phase of the legislature, for a course of action primarily aimed at demonstrating his ability to lead the country. The changing global landscape and the challenges posed by Donald Trump's US presidency, on the one hand, and the debate on funding for the autonomous communities, on the other, should present the People's Party (PP) with an opportunity to explore new avenues with a sense of national responsibility, without easing pressure on the government. The reality is that the PP shows no signs of having any kind of "shadow government," that is, an alternative team ready to take over when the voters or the outcome of a no-confidence vote decide. This explains the lack of a coherent foreign policy discourse. Meanwhile, regarding the resources of the autonomous communities, the PP has revived its strategy of refusing to participate seriously in the discussion of the proposed new model. However, Sánchez is convinced that the PP will gain nothing from this type of opposition, and that is why...He has offered communities that reject the initiative the option of keeping the current one....to the detriment of its citizens, who are losing revenue.

Competition on the right

For Junts, the situation is relatively similar. Its leaders are right when they say this wasn't the promised model. However, as Isla and Junqueras affirm, it represents a significant improvement. What makes opening new avenues for dialogue more difficult is the situation of both the PP and Junts, given the strong competition on their right. Vox now appears in the polls at the national level as the third largest political force, and Aliança Catalana occupies the same position in Catalonia, having become a constant thorn in Puigdemont's side. It's no wonder, then, that the government is trying to cast its net in almost every direction. Now it has reached new transfer agreements with the PNVAs the Lehendakari (President of the Basque Government), Imanol Pradales, says, "as long as there's a game, we'll keep playing."

What is commendable in this landscape—where even those to the left of the PSOE (Spanish Socialist Workers' Party) are reshaping their political landscape—is the responsibility shown by the unions. Regarding funding, they want the government to provide them with thorough information to ensure that the model allows for increased spending on social services. UGT and CCOO (General Union of Workers and Workers' Commissions) prioritize collective bargaining and will not engage in disruptive tactics. This was made very clear in the meeting that Pepe Álvarez and Unai Sordo had with Isla in Madrid. The unions know that history repeats itself when it comes to regional funding. The discussion Catalonia has always led it.And the other regions end up demanding the same concessions. This happened with the 15% of personal income tax allocated to the autonomous communities, heavily criticized by the People's Party (PP), which had allocated 30% when they were in power. The problem with the current proposal is not that it constitutes discrimination or arbitrariness, but rather that it falls far short of the specific funding demanded. Therefore, the Socialist Party (PSOE) is confident that the conflict will eventually subside.