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The Spanish government’s recently approved “social shield” decree, designed to extend key economic protections, is facing important opposition in Congress, threatening its passage despite concessions made to secure crucial votes.While a separate measure guaranteeing pension increases for 2026 appears poised for approval, the broader package, including an extension of eviction protections, is deeply fractured along political lines.
Pension Increases Secure Support, Eviction moratorium in Jeopardy
The Council of Ministers approved the Real Decreto-Ley – a decree-law – encompassing the so-called “social shield” on Tuesday, separating it from the legislation concerning the omnibus bill. According to PSOE spokesperson, Antonio Nogueras, “The important thing,” Nogueras stated, “is that the Government has acknowledged it made a mistake and separated the two decree-laws.” This separation has paved the way for the pension revaluation decree to be ratified, now supported by both Junts and the PP.
PNV agreement and Concerns Over Small Landlords
The revised legislation incorporates an agreement reached with the Basque Nationalist Party (PNV), exempting owners of one or two properties from being responsible for providing option housing for vulnerable tenants. “This will be the duty of social services,” explained government spokesperson Elma Saiz. Furthermore, landlords with two or three properties with pre-2020 contracts and non-vulnerable tenants will also not be subject to the eviction moratorium extension, mirroring the exemption for those owning one or two properties.
The eviction moratorium will continue to protect vulnerable individuals from eviction until December 31,2026,for the remaining property owners.
Broadening the Scope: Energy, Aid, and Tax Breaks
the Real Decreto-Ley also guarantees the supply of electricity, natural gas, and water for vulnerable consumers. This legislation,designed to garner broader support in Congress by avoiding inclusion in a larger omnibus bill,incorporates several measures from the latter. These largely consist of extensions for 2026, including the anti-eviction measures, though these are considered less contentious.
The “mini-omnibus” includes a new tax exemption for personal injury claims related to last summer’s forest fires, extends direct aid for the reconstruction of municipalities affected by severe weather events (DANA), and provides tax exemptions for affected professionals and businesses. It also extends tax deductions of up to 15% for the purchase of electric vehicles and the installation of charging points, as well as deductions ranging from 20% to 60% for energy-efficient home renovations.
Additionally, the legislation extends the limits for the application of the simplified IRPF estimation method for self-employed individuals and special regimes for agriculture, livestock, and fishing VAT. updates to transfers to autonomous communities and local entities are also included,with supplements of €3 billion for the former and €3.8 billion for the latter.
Political Maneuvering and Growing Opposition
Negotiations with political groups to secure support for the revised decree have been intense, notably on Monday, October 2nd.maintaining equilibrium is crucial,as convincing reluctant parties to support the “social shield” risks alienating left-wing parties through concessions or modifications to the original omnibus bill.
This dynamic played out with the agreement reached with the PNV. Exempting small landlords sparked outrage from podemos, whose general secretary, Ione Belarra, described the legal change as “absolutely revolting.” Belarra added, “The poor things (owners of one or two properties) only belong to the richest group in our society.”
The government’s position is demonstrably complex. While securing the support of the PNV’s five deputies – who previously voted in favor of the omnibus bill – it has lost the four votes of Podemos, now part of the Mixed Group.
The government is expected to face another parliamentary and political defeat next week, during the vote to validate the pension increase. This “social shield,” initially forged through an agreement with Bildu, is now likely to falter in the Lower House due to a lack of broader support. .
