Congress strikes down two government decrees

Key points
  • On 26 February Congress repealed royal decree-laws 2/2026 and 4/2026 and validated the pensions decree.
  • The anti-eviction moratorium, the ban on cutting basic supplies and tax aid linked to disasters and electric vehicles all fall.
  • A decree-law applies from publication but depends on validation: long-term decisions should not rest on provisional measures.

On Thursday 26 February 2026 the plenary of the Congress of Deputies did not validate two government decree-laws. Royal Decree-law 2/2026 of 3 February, on urgent measures for social vulnerability, tax matters and territorial financing, was rejected by 177 votes against, 172 in favour and one abstention, with the PP, Vox and Junts voting against. Royal Decree-law 4/2026 of 10 February, which set price limits for goods and services in emergency situations, also failed.

The pensions revaluation decree, which raises contributory pensions by 2.7%, was validated, as was the one containing aid for the victims of the Adamuz rail accident. The Government therefore keeps the pension increase but loses, among other measures, the extension until 31 December 2026 of the suspension of evictions for vulnerable households, which it had approved on 3 February.

Which measures fall

With the repeal of Royal Decree-law 2/2026, the extension of the anti-eviction moratorium, the ban on cutting basic supplies such as water or electricity, the widening of the electricity social tariff and several tax aids fall, including those linked to disasters such as the DANA floods and forest fires and the incentives for electric vehicles. With Royal Decree-law 4/2026, the price caps in emergencies disappear.

The repeal does not erase what happened while the decree was in force: its effects remain until the repeal agreement is published in the official gazette. From then on, the measures cease to apply, and what returns is the rules in force before the decree.

How a decree-law works

The Constitution allows the Government to approve decree-laws in cases of extraordinary and urgent need. They come into force on publication, but Congress must decide within thirty days: if it validates them, they continue; if not, they are repealed. In addition, they cannot affect the rights, duties and freedoms of Title I of the Constitution, the regime of the autonomous communities or general electoral law. It is a tool designed for emergencies, which requires the Executive to have parliamentary support for its measures not to remain provisional.

It is not the first time in a short period. In January Congress had already struck down an “omnibus” decree that combined the pension increase with other measures, and the Government then split it into several texts, which have now had different outcomes. For anyone planning ahead, the lesson is that a measure in a decree-law is valid but precarious until it is validated. If the Government wants to continue a rejected measure, it must process it by another route, such as a bill or a new decree-law, which may delay it.

What to review

Landlords with eviction proceedings under way and the vulnerable households affected should consult their lawyer about where they stand procedurally, because the extended suspension will no longer be in force once the repeal is published. On the social side, municipal services remain the route to seek housing alternatives.

Companies and individuals who planned to claim tax deductions or aid provided for in the decree, for example for an electric vehicle, should wait for publication in the gazette and for the authorities’ guidance before committing investments. Doubts about which part of an aid or exemption remains in force will be resolved by the guidance the Tax Agency publishes, which is worth consulting once the agreement is published. Consult your adviser before deciding.

An urgent measure is only firm once Parliament validates it.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.

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