- On 22 January Congress rejected the decree that included the pension uprating, transport aid and other measures.
- A decree-law takes effect immediately, but it must be validated; if it is not, it falls together with everything it contained.
- A week later the Government approved another decree with much of the content, but an aid scheme should not be taken for granted until it is in force.
On 22 January 2025, the Congress of Deputies rejected the decree that bundled the uprating of pensions, transport aid and other measures. For a few days the future of those measures was left in the air, with the uncertainty that brings for those who counted on them, from pensioners to public transport users and companies in the sector.
A week later, the Government approved a new decree with much of those measures, which recovered the essentials. The episode nevertheless left a deeper lesson about how an urgent rule is made, what happens when a stable majority is lacking and why it is wise not to take for granted what has not yet been published.
What a decree-law is
A decree-law is a rule with the rank of law that the Government can approve in urgent cases and that takes effect immediately. In return, Congress must validate it within a set period. If it does not, the rule is repealed and with it everything it contained. It is an instrument designed for exceptional situations, although in practice it is used frequently.
That mechanism explains why a decree can be in force for days and still be uncertain: what applies today can cease to apply if the vote goes badly. In the meantime, companies and administrations must decide whether to apply the measures, how to reflect them in payroll, invoices or aid, and what happens if they are later annulled. That is why, when it comes to aid or benefits, prudence suggests distinguishing between what is published on a provisional basis and what has already passed validation.
Everything in one package
By grouping very different measures in a single decree, such as pensions and transport aid, the rejection of one part dragged down the whole. For a few days provisions affecting many people were left in the air, and they were only recovered with a new text that had to be negotiated again.
Broad packages make it easier to gather support, because each parliamentary group finds something of interest, but they also multiply the points of friction: it is enough for one group to oppose a single measure for all of them to be at risk. For citizens, the result is a feeling of instability about rights they considered settled. When the same measure is approved again a few days later, the damage in terms of trust does not entirely disappear: what remains is the idea that any rule may be provisional.
A prudent rule
Parliamentary fragmentation meant that any measure could fall. For companies and families, not taking an aid or incentive for granted until it is in force is a good rule of prudence, and so is keeping the documentation needed to claim it when it is finally confirmed.
In practice, it is wise to review which decisions rest on a rule that is not yet definitive: a hire, an investment, an aid application or a cash-flow plan. If the decision cannot wait, it is reasonable to have an alternative plan and to discuss it with a legal or employment adviser who follows the process closely. And if a large group is being managed, such as a workforce or a client portfolio, it is wise to communicate clearly what is confirmed and what is not, to avoid misunderstandings.
In tight parliamentary politics, what has not been published in the official gazette is not yet certain.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
