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Date Published: 24/01/2025

Anticipated pension increase and transport discount in Spain fails to pass Congress

The key measures, which would have impacted millions of people, were unexpectedly voted down

The Spanish Congress has rejected a comprehensive bill that aimed to extend public transport discounts, raise the minimum wage and increase pensions, among other measures. The defeat of this so-called ‘omnibus’ bill potentially impacts up to 12 million people across Spain.

The omnibus bill, encompassing 80 different measures, was voted down this week in a heated session of Congress. The Socialist-led (PSOE) government had combined various proposals into a single legislative text to pressure opposition parties into supporting it. However, a coalition of the centre-right Partido Popular (PP) and the separatist party Junts per Catalunya blocked the bill’s passage.

Transport discounts, a key feature of the bill, are among the most immediate casualties. Tickets and season passes purchased from Thursday January 23 reverted to their regular, non-discounted prices. Transport Minister Óscar Puente confirmed that the legal framework supporting discounted travel will expire, requiring passengers to pay full fares moving forward.

Nevertheless, some regional governments have announced temporary measures to continue providing transport discounts. Madrid, the Basque Country, Catalonia, the Balearic Islands and Valencia are among the regions stepping in to cushion the impact on commuters, while the government works to renegotiate to try to have the bill passed a second time, perhaps by splitting the different parts of it into separate bills.

Beyond transport discounts and pensions, the rejected bill included numerous other measures:

Minimum wage: The minimum interprofessional wage will revert to 2023 levels until a new agreement is reached. Negotiations on a 2025 increase are currently underway
Flood relief: Extensions of loans for those affected by the Valencia floods will expire
Energy policies: Deductions for energy efficiency improvements, as well as tax breaks for purchasing electric vehicles and recharging stations, will end
Windfall tax: A proposed tax on energy companies included in a separate decree is also off the table

Political implications of the defeat

The defeat underscores the fragility of the Sánchez government’s parliamentary majority. The legislature has not passed a budget in two years, and the government’s reliance on Junts’ seven votes has become increasingly precarious. Junts has criticised the government for failing to honour commitments linked to the 2023 amnesty law and is pushing for greater concessions on Catalan rights, including the recognition of Catalan as an official EU language and increased control over immigration policies.

Political analysts are divided on whether this marks a temporary negotiating tactic or a more profound rupture between PSOE and Junts. Many warn that the legislature could now face prolonged gridlock.

The vote has drawn sharp criticism from government officials and opposition leaders alike. Finance Minister María Jesús Montero accused opposition parties of prioritising political gamesmanship over the wellbeing of citizens, stating, “The losers here are pensioners and workers.”

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