Spain has reached a symbolic yet troubling milestone: 1,000 days without a new national budget. The left-wing coalition led by Pedro Sánchez, comprising the Socialist Party (PSOE) and the leftist platform Sumar, has governed for an entire legislative term without passing a single new spending plan. Instead, it continues to operate on the budget approved for the 2023 financial year.
The government has repeatedly cited the fragmented parliamentary landscape following the 2023 general election as the reason for the delay. Despite promises from both Sánchez and former finance minister María Jesús Montero, no budget was presented in 2024 or 2025. In June, Sánchez ruled out a new budget for 2026, pushing the earliest possible date to 2027.
This situation is all the more striking given Sánchez's own words in opposition. In 2018, he told then-prime minister Mariano Rajoy of the centre-right Partido Popular that "to govern without a budget is not to govern at all."
Constitutional and legal concerns
Article 134.3 of the Spanish Constitution requires the government to submit a new budget to Congress at least three months before the previous one expires. It also allows for the extension of the previous budget if a new one is not approved—a provision the government has leaned on heavily. But legal experts argue this mechanism was never intended for prolonged use.
César García Novoa, professor of financial and tax law at the University of Santiago de Compostela, told European Pulse that the rule "is designed for an extension of one year at most; it is an emergency mechanism." He noted that other European countries also allow budget extensions, "but they are always tied to short-term, exceptional situations, such as Belgium’s government crisis."
Fernando Navarrete, a Partido Popular MEP on the European Parliament's budget committee, shares that view. "Until Sánchez, the understanding was that the extension lasts for one year. If after that there is still no majority to approve a budget, you have to call elections," he said. Navarrete described the 1,000 days without a new budget as a "democratic anomaly" and argued that it amounts to "a theft from citizens, who have not been able to decide through their representatives how much public money is spent and on what."
Government defends its record
Spain's Ministry of Finance rejects these criticisms. Officials point to measures taken to shield citizens from energy price spikes linked to the conflicts in Ukraine and the Middle East. On housing—currently the top concern for Spaniards, according to the Centre for Sociological Research—the ministry highlights the €7 billion earmarked in the State Housing Plan for 2026-2030.
However, because that plan was not included in the 2023 budget, the government has had to use extraordinary funding channels. Navarrete argues this is a misuse of emergency mechanisms "designed for other situations," and that the lack of a new budget prevents Spain from "responding to global disruptions."
Brussels watches with concern
The prolonged budget freeze also has European implications. Under EU fiscal rules, member states must present medium-term plans that ensure sustainable public finances and promote investment and reforms. Spain has submitted such a plan, but without a new budget, it cannot demonstrate how it intends to meet those commitments.
"The European Commission relies on its own economic forecasts to supervise us," Navarrete said. He added that while Brussels is concerned, it has not reacted strongly because it views the issue as an internal political problem. "It is a mistake and I do not understand their stance, because Spain is breaching its European commitments, overspending on public money and passing the hot potato to the next government," he told European Pulse.
García Novoa echoed that sentiment, saying the extended budget "limits Spain’s ability to set out the reforms required by the European Union" and weakens the country's credibility in Brussels. The situation also complicates Spain's role in broader EU budget discussions, as member states remain deadlocked over the bloc's own spending priorities.
What happens next?
The Ministry of Finance insists a budget for 2027 will be presented soon. "We are confident it will be approved and we are not contemplating any other scenario," sources told European Pulse. The government has already opened talks with several parties to secure support, though it is unlikely to meet the constitutional deadline of 30 September.
"The extension of the current budget has not prevented Spain from growing above the EU average or from achieving record employment. The new budget must consolidate this trend and strengthen the welfare state," the ministry said.
But critics, including Navarrete, see the move as a possible prelude to a snap election if parliament rejects the new budget. Spain's prolonged budgetary limbo is not just a domestic issue; it raises questions about democratic accountability and fiscal credibility across the EU. As Europe debates its own budget priorities, Spain's inability to pass a national budget stands as a cautionary tale.
