The PSOE and Sumar are negotiating the decree on the Iran war at the last minute.

Madrid24 hours before the extraordinary cabinet meeting that is to serve to approve a package of measures To address the inflation caused by the war in Iran, the PSOE and Sumar have yet to reach an agreement on the contents of the decree law. The Socialists maintain that it will be limited to economic measures focused on the energy sector, particularly electricity and fuel. They argue that these measures have the "consensus" of their parliamentary partners. Sumar, on the other hand, laments that a major "stumbling block" to reaching an understanding is the moratorium on evictions, a prohibition that was included in the last two social safety nets and which Junts ultimately rejected. A meeting between the PSOE and Sumar took place on Wednesday, and further meetings will continue on Thursday to finalize the details. "What we will incorporate are measures that have the consensus of the other groups; that's what we will have to explore this afternoon," explained the Vice President for Economic Affairs, María Jesús Montero. Breakfasts Organized by RTVE and EFE. "We would all like to incorporate many more things, but whatever is included has to be accepted by the rest," he explained.

The junior partner in the Spanish government does not share this view. Several voices within the Sumar coalition support incorporating housing measures even without the support of Junts and the PNV, and despite the fact that this could derail the entire text. The objective, they say privately, is to clarify their roadmap and "expose" the parties that vote against it. Early this morning, in an interview on TVE, Minister Ernest Urtasun stated that it would be incomprehensible if the eviction ban was extended in the two previous decrees—despite the reservations of Junts—and not now. Urtasun emphasized that for them, the eviction moratorium is an "essential issue." However, the Minister of Culture has declined to "anticipate scenarios" and has refused to clarify what Sumar will do if the decree reaches Congress without including housing measures. Shortly afterward, Montero explained that Moncloa will approve a package of measures structured around two main pillars. The first will contain "structural measures" related to the energy transition, intended to ensure "much better preparedness" for future crises. The second will include "urgent and short-term measures" to help the most affected sectors—those that use the most electricity and fuel—and "alleviate the pressure on families, households, and the productive sector." Montero also avoided commenting on reducing the VAT on food if the armed conflict drags on: "We are not in that scenario; it's just speculation for the sake of speculation."

Looking ahead to Friday, the Spanish government is "talking" with social partners and parliamentary groups to ensure the decree's ratification in the lower house. In fact, María Jesús Montero has boasted about the "training" the Socialists have in dialogue. Regarding hypothetical support from the People's Party (PP), the Finance Minister lamented that they cannot "trust it" because the PP "always looks for excuses." From Brussels, before the European Council meeting, Spanish President Pedro Sánchez guaranteed that the Moncloa Palace will put "all the resources of the state into responding to the economic and social effects of this crisis."

"A few more weeks" for the Spanish budget

After Pedro Sánchez on Thursday will leave the presentation of the Spanish budget up in the air Given the "seriousness of the international situation," María Jesús Montero clarified that the approval of the public accounts by the Council of Ministers will be delayed "a few weeks" because the decree on the war with Iran has been "a priority." "I would much rather have a budget, but the extension is legal," she argued. However, she committed to having a new budget in place by January 1, 2027: "I cannot imagine that we could be without a budget in 2027."