Spain sets 0.1% deficit target and 4% spending ceiling for autonomous regions

Finance Minister Arcadi España announced that the Council of Fiscal Policy and Finance (CPFF) will propose a deficit limit of 0.1% of GDP for Spain’s autonomous communities for the 2027‑2029 period, alongside a maximum annual spending growth of 4% in 2027 (dropping to 3.8% in 2028 and 3.6% in 2029). The plan also includes an estimated fiscal margin of about €5.8 billion and an 8% rise in transfers to the regions, described as the largest resource boost in history. The government aims to have the rules approved by the Congress of Deputies in extraordinary sessions on 14 July, with a possible second vote on 23 July. Regional governments led by the People's Party have rejected the proposal, calling it a “paripé” and warning of a €5‑6 billion adjustment if the limits are enforced. The minister signalled willingness to discuss asymmetric deficit targets, while opposition parties such as Podemos have signalled they will not support the spending ceiling. Negotiations are expected to continue ahead of the 2027 budget drafting.