Events in the Spanish Congress have led to unexpected consequences for millions of citizens. The rejection of the so-called ‘omnibus decree’ has put payments, subsidies, and benefits at risk for pensioners, low-income families, and other vulnerable groups. The question of the future of social support has become particularly acute: more than 15 million people are now facing uncertainty.
This package included not only pension indexation but also the extension of the eviction moratorium for tenants in difficult situations. This particular point became a stumbling block for opposition parties, who accused the government of trying to combine measures that are too different into a single document.
Who is at risk of losing benefits?
Pensioners have taken the hardest hit: nearly 9.5 million people were expecting a 2.7% pension increase as early as February. The situation is especially difficult for recipients of minimum pensions—over two million of them, and for whom an increase of 7–11.4% was planned. Now these changes are in doubt.
Families receiving the minimum guaranteed income (Ingreso Mínimo Vital) have also suffered a serious blow—nearly 800,000 households, with more than half a million receiving additional child support. Subsidies for electricity and heating, used by more than three million households, are also at risk.
Consequences for the labor market
The unemployed and self-employed have also been affected. Nearly 870,000 people receiving unemployment benefits will lose access to the simplified tax return process. More than a million sole proprietors, especially in agriculture, will be unable to take advantage of new tax breaks aimed at easing their financial burden.
Special attention was also given to public sector employees: around 20,000 firefighters and 6,000 forest inspectors could have counted on improved retirement terms, while nearly 38,000 doctors and pediatricians were offered the chance to combine work and pensions for another year. Now these initiatives have also been put on hold.
Political Conflict
The decree failed due to the position of opposition parties, who insisted on a separate discussion regarding pensions. They accused the government of combining too many unrelated measures into a single document, making decision-making difficult. Supporters of the decree, in turn, emphasized that millions of people have been affected by this outcome.
The practice of bundling diverse measures into a single bill has repeatedly sparked controversy in Spanish politics. This time, the conflict has reached a peak: the government must urgently seek a compromise to avoid leaving the most vulnerable groups without support.
What else has come under threat
In addition to direct payments, other important initiatives have also been called into question. Among them are tax breaks for purchasing electric vehicles, which could benefit thousands of families, as well as compensation for those affected by natural disasters. Furthermore, the regions would lose 20 billion euros if intergovernmental transfers are not extended.
All this creates an atmosphere of uncertainty and tension. The domestic political struggle has directly impacted the lives of millions of Spaniards, and it remains unclear how quickly a solution to the current situation can be found.
