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Spain's government drops 2024 budget bill and opts for extension

AFP
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Spain's government drops 2024 budget bill and opts for extension
Under Spain's Constitution, the government can extend the budget for several years under certain conditions if there is no parliamentary agreement, which has happened several times in recent years.(Photo by Pierre-Philippe MARCOU / AFP)

Spain's left-wing government will not present a bill for the state's 2024 budget and will instead extend the current one for the rest of this year.

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The decision was taken following Wednesday's announcement of snap elections in the Catalonia region, which could spell problems for the government of Prime Minister Pedro Sánchez to muster the necessary parliamentary support to ensure the budget passes.

With the Catalan elections "the political conditions change" and "parliamentary arithmetic is key to advancing the state budget," admitted Juan Espadas, spokesman for Sánchez's Socialist party.

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Speaking to Cadena Ser radio on Wednesday night, Treasury Minister Maria Jesus Montero said the government was trying to be "realistic" in light of the changing political panorama and would instead "work on the budget for 2025".

The 2024 budget should have been approved by the end of last year but was delayed due to an extended period of uncertainty following last July's general election which resulted in a hung parliament.

Sánchez eventually secured a new four-year term in November following months of talks which involved the key support of two Catalan separatist parties, the hardline JxCat and its more moderate rival ERC.

His minority government relies on a fragile network of parliamentary allies to pass legislation.

The 2023 budget was initially extended on January 1st.

Catalonia's snap elections, which will take place on May 12th, will monopolise the attention of JxCat and ERC and likely condition any parliamentary support they might offer to Sánchez's Socialist party, which will also be contesting the regional vote.

"Without any doubt, the elections in Catalonia clearly alter the political landscape," Montero told Cadena Ser radio, saying she wanted to "make the most off" the "preliminary" agreements already reached over the 2025 budget.

Under Spain's Constitution, the government can extend the budget for several years under certain conditions if there is no parliamentary agreement, which has happened several times in recent years.

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