The Government of Spain approves the increase in pensions and aid for public transport and those affected by the DANA

Moncloa Palace, Madrid

The President of the Government of Spain, Pedro Sánchez, during the appearance after the meeting of the Council of Ministers (Pool Moncloa/Borja Puig de la Bellacasa)

The Council of Ministers has approved a new royal decree law which contains almost all of the social shield measures included in the one approved on 23 December 2024, which was not validated by the Lower House of Parliament.

Appearing before the media, the President of the Government of Spain, Pedro Sánchez, stressed that the new regulation includes the revaluation of pensions in accordance with CPI; the improvement of minimum pensions; aid to municipalities, households and companies affected by the DANA; subsidies for public transport and aid for those affected by the volcano on the island of La Palma.

The new royal decree law includes an additional measure on housing, already announced by the President of the Government of Spain, which did not appear in the previous one: the creation of a public system of guarantees for landlords and tenants.

Pedro Sánchez has clarified that the text does not contain any initiative that implies a rise in electricity prices: "It's false, it's not true. In fact, it is the other way around. The royal decree improves the social voucher from which the most vulnerable families benefit."

The head of the Executive also stressed that the regulation does not imply an increase in VAT on foodstuffs: "Another falsehood, another hoax, another lie, as it contains no measure regarding this."

The President defended the fact that dialogue, negotiation and agreement are the hallmarks of the progressive Government and thanked all the members of the Council of Ministers for their "aptitude and attitude" because they do not give up a game for lost and "in the end things work out in favour of the social majority."

Pedro Sánchez also invited all parliamentary groups to "vote in favour of these measures, which enjoy overwhelming support from Spanish society."

Economic measures to continue to lead growth and job creation

The President of the Government of Spain, Pedro Sánchez, during the appearance after the meeting of the Council of Ministers | Pool Moncloa/José Manuel Álvarez

With regard to the economic measures approved in December that are not included in the new decree law, Pedro Sánchez pointed out that the Government is already negotiating with the parliamentary groups so that they can be approved "in a matter of weeks." Among these initiatives, the President mentioned the boost to the electro-intensive industry and the automotive industry - with the MOVES plan - and the payments on account to improve the financing of the autonomous communities.

The head of the Executive has defended the importance of these actions to "continue promoting the extraordinary economic moment" that Spain is going through, which is why he hopes that they will have the support of a broad majority of the parliamentary groups. "At least from those who share the desire for our country to continue to lead economic growth and job creation in Europe," he added.

In this regard, Pedro Sánchez highlighted the data from the Labour Force Survey (EPA) released today: in a very complex international context, Spain recorded the lowest unemployment rate in the last 16 years in 2024 and created half a million new jobs. "And the forecasts for 2025 and 2026 are also for an intense pace of job creation," he said.

The President stated that the record growth and employment figures, the transformation of the production model and the reduction of inequalities are not only the merit of the Government's policies over the last seven years, but also of all the parliamentary forces that have supported them with their votes, as well as of companies, workers and Spanish society as a whole.

Stakeholder regulation

The President of the Government of Spain, Pedro Sánchez, during the appearance after the meeting of the Council of Ministers | Pool Moncloa/Borja Puig de la Bellacasa

The Government has agreed to submit the Draft Law on Transparency and Integrity of Stakeholder Activities to Parliament. This is the first time that the relations between the so-called 'lobbies' and the holders of public positions in the General State Administration (AGE), which are susceptible to receiving influence, have been regulated in order to guarantee greater transparency, participation in public decision-making and the prevention of conflicts of interest.

The regulation considers stakeholders to be natural and legal persons, groups without legal personality, including platforms, forums, networks or other forms of collective activity that carry out activities of influence on public personnel.

Public administrations and their public institutional sector, international public bodies and authorities (including diplomatic missions and embassies), political parties, trade unions and employers' organisations and professional associations in the exercise of public functions shall not be considered as lobbyists.

Public personnel susceptible to influence are considered to be senior officials of the AGE, cabinet advisors, public managers and other public personnel involved in decision-making, in the drafting of regulatory provisions and in the implementation of public policies.

Other agreements

The Council of Ministers authorised the amendment to the tender of the MUFACE agreement for 2025, 2026 and 2027, which offers health coverage, through insurers, to civil servants. The total amount of the contract budget, once the price has been amended, amounts to 4.808 billion euros, 1.276 billion euros more than the current agreement.

On the other hand, the Government has allocated 143 million euros in direct aid from the Recovery, Transformation and Resilience Plan to two Spanish projects chosen by the European Commission to promote the use of renewable hydrogen in mobility and transport on a European scale.

In addition, the Government has authorised the purchase of almost 25 million doses of seasonal flu vaccine for the 2025 to 2028 seasons. The estimated value of the acquisition exceeds 277 million euros. These are vaccines for several autonomous communities, various bodies of the General State Administration and the cities of Ceuta and Melilla.

Non official translation