Jaén finally approves municipal budget for 2026 after nine years. The city, long known not only for its olive groves but also for its massive debt, is now in the national spotlight. With more than 600 million euros owed, Jaén leads all Spanish provincial capitals in per capita municipal debt.
For years, the city operated under provisional financial plans, with each attempt to balance new revenues and expenditures blocked by political disputes and central government demands. Everything changed after the January power shift: in early 2025, the Socialists (PSOE), backed by the Jaén Merece Más movement born from “España Vaciada,” ousted the People’s Party (PP) from city hall. It was the first power shift of its kind among Andalusian capitals since the 2023 elections, ending PP’s control over all major cities in the region.
Budget finally under control
Securing budget approval proved to be a real challenge. Spain’s Ministry of Finance, closely monitoring every move by the municipality, imposed strict conditions: the city was officially designated as a financial risk zone. As a result, the budget was only approved once the Ministry insisted on freezing 19 million euros—these funds will remain inaccessible until city revenues reach the required level. Still, city officials note that negotiations with the ministry yielded concessions on debt repayments, granting the budget at least a little breathing room.
Ultimately, the total approved expenditure amounted to 194 million euros. Only the Socialists and Jaén Merece Más supported the plan, while the opposition—PP and Vox—strongly objected. The new mayor, Socialist Julio Millán, admits that despite the budget’s investment focus, the situation remains extremely difficult. The debt is still there, and both the Ministry of Finance and the internal financial oversight service continue to maintain strict double supervision. Residents were immediately informed—there’s no easy road ahead.
Political battles
For city authorities, passing the budget marked not only a political victory but also, they say, an act of restoring fairness for residents and municipal workers. The head of the finance department, Francisco Lechuga, described it as an “institutional breakthrough,” while coalition partners from Jaén Merece Más recalled that their support for the Socialists hinged precisely on the urgent need to adopt a new budget and start addressing the historic debt problem.
Jaén Merece Más leader Luis García Millán emphasized that as long as their movement partakes in city governance, the true interests of residents will remain the top priority. However, the opposition is far less enthusiastic. Former mayor and current PP leader in the city council, Agustín González, said his refusal to back the budget stemmed from an unwillingness to become an “accomplice to a massive tax increase.”
Taxes and tensions
According to PP representatives, the city government has taken the “traditional socialist route” by raising the tax burden for everyone. Specifically, they claim the property tax (IBI) will rise by 10%, the vehicle tax by 50%, and the construction tax by 40%. Additionally, fees for economic activity and property value growth will increase. The mayor’s team decisively rejects all these accusations, further intensifying debate in the city council.
The debate during the session became so heated that it turned into personal attacks. In response to the accusations, the mayor called his opponent “shameless” and a “liar,” prompting the PP to demand a public apology. As a result, instead of unity in the face of financial troubles, the city was met with yet another round of political confrontation.
Future in Doubt
The situation in Jaén is a vivid example of how financial hardship can become a battleground for fierce political clashes. Trapped in debt, the city must navigate demands from the central government, residents’ interests, and local politicians’ ambitions. The approved budget is only the first step on a long road to financial recovery, and it remains to be seen whether the authorities can keep things under control.
