Spain's PP and Vox lock in regional budget deals amid subsidy cuts

In Andalusia, President Juanma Moreno (PP) said negotiations with Vox are being handled discreetly to secure approval of the four regional budgets and avoid the delays experienced by the national government under Prime Minister Pedro Sánchez. Moreno emphasized that the region will continue to be a reference for stability and that the pact will include measures incorporated into the budgets as a concession to Vox, which the PP lacks a majority to govern alone.

In Valencia, Vox spokesperson José María Llanos disclosed a specific agreement with the PP to cut subsidies to employers and unions by 20%, on top of a 30% reduction applied in 2025. The deal also ties the approval of the 2026 budget to the implementation of a "national priority" principle, which Vox argues should direct public funds to Spanish citizens. The proposal has sparked friction with PP ministers who defend the existing "arraigo" provision that links housing benefits to municipal residence regardless of nationality. Both regions illustrate Vox leveraging its support to shape fiscal policy and enforce stricter immigration‑related spending rules.