Madrid City Council Approves Adjustment Plan for Exceeding Spending Rule

The measure is taken after exceeding the spending limit by 56.9 million euros in 2025, representing 0.88% of the budget.

Facade of Madrid City Hall under sunlight.
IA

Facade of Madrid City Hall under sunlight.

The Madrid City Council is set to approve an Economic Financial Plan for the 2026-2027 period, following a breach of the spending rule in 2025 amounting to nearly 57 million euros.

The plan, which will be presented at next week's Plenary Session, is a mandatory response to the “minimal non-compliance” with the spending rule, totaling 56.9 million euros. This figure represents 0.88% of the final credit against a budget of nearly 6.5 billion euros, as reported by sources from the Economy and Finance department.
The deviation is primarily attributed to two operations recorded in December 2025. One involves the refund of income in compliance with a European Commission decision related to Real Madrid, dating back to 2015. This payment to the club amounted to 20.3 million euros, stemming from an appeal filed with the European courts regarding benefits that the City Council had previously deemed excessive.
The council also points to the salary increase for civil servants, approved at the end of the year through Royal Decree-Law 14/2025, which incurred an expense of 39.2 million euros. It is argued that this measure did not provide sufficient time to adapt municipal accounts.

"For all these reasons, it is necessary to approve the 2026-2027 Economic Financial Plan of the Madrid City Council for the recovery of the spending rule derived from the 2025 Budget Settlement."

the approved document
The 2025 budget settlement, which revealed this non-compliance, was approved by the Governing Board in March of this year. The PSOE has been the party to disclose the contents of this document.

"Another Almeida blunder that adds to all the ones we've already had and that, once again, Madrileños are paying for."

a socialist councilwoman
A socialist councilwoman criticized the government team for processing this plan “through the back door” and warned that the Economic Financial Plan would mean the City Council being “under the tutelage of the Ministry of Finance for the next two years.” She also lamented that, despite initial assurances from the municipal government that no additional measures would be necessary, they have ultimately been adopted, although their exact details have not yet been made public.