Spain's Garamendi and Basque PNV Urge Government to Approve New Budget

Business federation president Antonio Garamendi called on the Spanish government to approve the newly proposed state budget, which sets a record spending ceiling of €226.032 billion. Addressing an SME conference, he warned that the lack of an approved budget undermines confidence for companies, criticized what he described as over‑regulation and high tax pressure, and highlighted concerns about labour reforms and rising sick‑leave costs.

In a separate commentary, Basque nationalist leader Aitor Esteban of the PNV warned that without a fresh budget the current legislative term could collapse, forcing early general and municipal elections. He accused Prime Minister Pedro Sánchez of failing to meet agreements with the Basque Country and stressed that a budget‑approval agreement is essential to avoid a 2027 election scenario and to manage coalition dynamics involving the PP, Vox and other regional parties.