Spanish Congress Rejects 'Omnibus' Decree, Halting Pension Revaluation and Key Social Measures

Government Faces Parliamentary Defeat

The Spanish government experienced a notable parliamentary setback on Tuesday, January 27, 2026, when the Congress of Deputies rejected a crucial 'omnibus' Royal Decree. This comprehensive legislative package, officially identified as Royal Decree-Law 16/2025 of 23 December, aimed to implement a range of social and economic measures, including the revaluation of pensions for the year 2026.

The decree was defeated by a vote of 177 against to 171 in favor, with one abstention, marking a significant blow to Prime Minister Pedro Sánchez's administration. The rejection was primarily driven by a united front of opposition parties, including the Popular Party (PP), Vox, and the Catalan separatist party Junts, with UPN also contributing to the 'no' votes.

Key Measures Affected by the Rejection

The 'omnibus' decree encompassed a wide array of provisions, and its rejection has immediate and far-reaching consequences for millions across Spain. Among the most prominent measures now in limbo are:

• Pension Revaluation: A planned 2.7% increase for pensions in 2026, intended to align with inflation, has had its legal basis evaporated. This affects over 13 million pensioners who had already seen their January payments reflect this increase.
• Public Transport Subsidies: The extension of public transport discounts, which provided relief to commuters, was included in the rejected decree. While some regional governments may maintain their own subsidies, the national extension has been impacted.
• Eviction Protections: Measures offering protection against eviction for vulnerable families, initially introduced during the pandemic, are now at risk.
• Support for Self-Employed Workers: The freezing of Social Security quotas for the self-employed faces uncertainty.
• Other Social and Economic Provisions: The decree also contained provisions for energy subsidies, tax relief for victims of the DANA floods, and subsidies for the purchase of electric vehicles and energy-efficient building renovations, all of which are now nullified.

Opposition's Stance and Government's Dilemma

Opposition parties justified their rejection by criticizing the government's practice of bundling disparate measures into a single decree, a tactic they labeled as 'legislative blackmail' or 'manipulative tactics'. The PP stated its support for pension increases but opposed the inclusion of controversial provisions, such as those related to housing and anti-eviction rules. Similarly, Junts expressed frustration over the government's failure to fulfill prior commitments and its approach of approving decrees without sufficient negotiation, specifically opposing the linkage of pension increases with eviction protections.

The government, led by Pedro Sánchez, now faces the challenge of addressing the invalidated measures. Officials have indicated that they will not abandon the affected citizens and are considering options to reintroduce the measures, likely through separate decrees, to secure parliamentary approval. This defeat highlights the fragile nature of Spain's political alliances and the complexities of legislative consensus.