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