Spain's government accelerates wage and pension reforms ahead of elections

As the Spanish general election approaches on November 29, the government of Pedro Sánchez is moving to implement economic measures that could impact approximately 12.5 million citizens. The administration is accelerating the process to approve an increase in the minimum wage (SMI) for 2027, aiming to finalize the agreement before the vote.

Additionally, the government is positioned to announce pension revaluations for 2027. Following the publication of inflation data by the National Statistics Institute (INE) on November 27, the government can anticipate the necessary adjustments, which are estimated to be around 3.5%. These measures, involving both wage increases and pension adjustments, are seen as key components of the government's final electoral strategy.

Polling data indicates a challenging landscape for the current coalition. Recent surveys suggest the PSOE and Sumar are facing low approval ratings, with a significant lead held by the PP-Vox bloc. Approximately 62.8% of voters view the current legislature negatively.