GOS PASSES BUDGET OVER SENATE VETO

UNCLAS MADRID 004851 SIPDIS TREASURY PASS TRACI PHILLIPS E.O. 12958: N/A TAGS: ECON EFIN SP SUBJECT: GOS PASSES BUDGET OVER SENATE VETO REF: A. MADRID 4385 ¶B. MADRID 4753 ¶1. The Spanish parliament passed the 2005 General Budget December 22 with an absolute majority over the Senate's veto. The budget passed with a vote of 180 to 162. The parties voting in favor of the budget were the Socialists, the Republican Left of Catalonia (ERC),the United Left (IU),the Canary Coalition and the Aragonist Council. Nafaroa Bai, Eusko Alkartasuna, the Galician Nationalist Party, the Basque Nationalist Party and Catalonia,s Convergence and Union joined the opposition Popular Party, in voting against the government,s budget. ¶2. Comment: The budget's passage ends the three month effort of the opposition Popular Party to embarrass Zapatero's Socialist government. Though 2005 marks the first time that the budget was returned to the lower house to override a Senate veto, the government will suffer very little in terms of political capital or loss of legitimacy. MANZANARES