PGE's enthusiasm softens as caution sets in, recognizing the challenging parliamentary circumstance.

Spanish Budget Saga Continues Amid Political Crossfire

The optimism surrounding the new General State Budgets (PGE) in Spain has taken a hit, due to the tricky parliamentary situation currently at play. Despite efforts to pass these budgets, the government is proceeding with caution until the investiture block is restored.

Before the downfall of the 'omnibus' decree, sources from the parliamentary group of Sumar acknowledged the complexity of the Budgets and had expressed doubts about successful collaborations with other parliamentary groups. Other voices from the coalition of allied parties see the circumstances as unfavorable to pass the budgets with the intensity of the ongoing government-Junts clash.

Ernest Urtasun, the spokesperson for Sumar and Minister of Culture, remains hopeful that the budget scenario is not "dead in the water." In fact, the co-spokesperson of the 'commons,' Aina Vidal, believes that public accounts are not a sine qua non condition for the legislature to continue, but they are "most desirable" for both the PSOE and Sumar.

The federal coordinator of Sumar, Antonio Maíllo, emphasizes the importance of new accounts, stating that they are "crucial" and "indispensable," as they condition the "survival" of the Executive. The parties are calling for a fight to have these accounts, despite the ongoing threats from Junts, which previously stated they would not negotiate them.

The mood in Sumar contrasts with their expectations at the end of the year, when they perceived that the new Budgets were on track after the tax reform was passed. The leadership at the top of the formation still holds the belief that the Budgets are a law that, in principle, allows for more incentives to parliamentary partners. However, they perceive that the PSOE will only bring them to Congress when it has sufficient votes.

Meanwhile, the ongoing parliamentary difficulties of the government are not limited to Junts, as Podemos has made it clear that they will not negotiate the public accounts unless the PSOE first fulfills previously acquired commitments, such as making the energy tax permanent. The purple party has stated that they will not even sit down to talk about budgets if agreements are not respected and they have been warning for some time that they mistrust the Executive.

Morado sources stated that they already perceive the Government acting with “inertia” and estimate that next year there may even be fewer incentives to gather enough majority for an essential law like the PGE. The secretary general of Podemos herself, Ione Belarra, has expressed doubts about the Government’s ability to bring forward new public accounts, stating that they seemed "out of play" due to a judicial offensive against the president’s family entourage.

There's more to this political drama than budgets, with Sumar's displeasure with Junts becoming evident as they accuse the party of making a mistake by aligning with PP and Vox, who wish to end the Amnesty Law. On a brighter note, second deputy prime minister, Yolanda Díaz, calls for rebuilding trust between Junts and the Executive, hoping to secure their support on major national issues.

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The Spanish government is preparing policy-and-legislation, particularly war-and-conflicts policy, with caution due to the ongoing difficulties in the legislature, especially the investiture block.
Despite doubts about successful collaborations with other parliamentary groups, PSOE and Sumar are still hopeful that the General State Budgets can be passed, acknowledging their importance and indispensability for the survival of the Executive.
Amid political crossfire, especially the government-Junts clash and Podemos's refusal to negotiate public accounts, the mood in Sumar contrasts with their expectations at the end of the year, as they perceive that the new budgets might not be on track.
In the midst of this political drama, also involving issues like the Amnesty Law, second deputy prime minister, Yolanda Díaz, is calling for rebuilding trust between Junts and the Executive, hoping to secure their support on major national issues.
Beyond the budget saga, general news headlines include an earthquake in Istanbul causing injuries, a sports update featuring an injured Jimmy Butler, and international news about Pakistan preparing a response against Indian reprisals for the Kashmir attack.