Spain's draft budget clears first hurdle in win for minority government

  • 11/4/2021
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MADRID, Nov 4 (Reuters) - Spain’s minority leftist government came a step closer to passing the country’s 2022 budget on Thursday after the deeply fragmented lower house voted to take the bill through to a second stage of debate. By a vote of 188-156, with one abstention, the lower house rejected proposals from the opposition to send back the draft budget submitted by the government in October. The bill still faces at least two months of parliamentary negotiations before it is finally approved and signed into law as political parties can now propose detailed amendments to its content. Such amendments can sometimes run to several thousand. If passed, these will be the second consecutive budget approved by the minority coalition government that came to power in January 2020. Many analysts believe getting the green light in the 2022 budget is a litmus test on how long Prime Minister Pedro Sanchez’ coalition can last. Sanchez has always argued he can govern until 2023. The budget is one of the largest in Spain’s history, thanks to European recovery funds that will drive investment to 40 billion euros next year. Although the government has pledged to reduce the deficit, it will still stand at the equivalent to 5% of gross domestic product. (Reporting by Belén Carreño and Inti Landauro Editing by Frances Kerry)

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