The Government of Spain allocates €6.2 billion to overhaul the long-term care system

The Council of Ministers has approved extraordinary measures to strengthen and consolidate the System for Autonomy and Care for Dependency, representing the largest financial contribution in the system's history, as announced by the President of the Government of Spain, Pedro Sánchez.

Pablo Bustinduy, Minister for Social Rights, Consumer Affairs and 2030 Agenda emphasised that "the Government has approved an unprecedented investment to overhaul the long-term care system in Spain". For the remainder of 2026 and throughout 2027, an additional €6.2 billion will be allocated beyond the initial budget, effectively doubling the investment in long-term care compared to 2025.

Bustinduy emphasised that this decision represents the largest social investment of both this and the previous parliamentary term, as well as the biggest expansion of Spain's social network in decades.

The legislation reflects the Government's commitment to establishing a universal care system covering all stages of life and to ensuring that 50 per cent of the funding for the long-term care system is provided by the General State Administration. In the minister's view, this "represents an irreversible step forward in ensuring that spending on care is never again used as a bargaining chip or an adjustment variable, as happened during the era of cuts, and to lay the foundations for this major transformation of the system and for a new care model that has sufficient resources to guarantee a higher-quality public service and a fundamental right for all citizens".

The minister announced that his intention is for the ratification of the Royal Decree-Law in the Lower House of Parliament to coincide with the vote on the reform of the laws on disability and dependency, which will provide the legal framework for a far-reaching transformation of the care system.

"The aim is to move definitively away from a welfare-based, mass-care model centred on the construction and management of large care homes, and to create a personalised, community-based system that allows people to continue living in their own homes with the necessary support and assistance for as long as they wish and with the best possible quality of life", Bustinduy stated.

Increase in transfers from the Spanish State to the autonomous communities

The Minister for Social Rights, Consumer Affairs and Agenda 2030, Pablo Bustinduy, during the press conference after the Council of Ministers

The reform of the system will, from 1 July, increase the amounts that the Spanish State transfers to the regional governments for each person with a recognised degree of dependency. Thus, the amounts for people with recognised Level I dependency will increase from €76 to €90 per month, for Level II they will rise from €130 to €260 per month, and for Level III they will increase from €290 to €660 per month.

The minister added that the autonomous communities will have 93% more resources to meet the system's obligations: "The immediate aim is to eliminate waiting lists, increase the intensity and quality of services and care, and improve working conditions in a sector that is absolutely essential and strategic."

Greatest expansion of the Welfare State and strengthening of democracy in decades

Following these increases, the government's financial contribution to long-term care will reach €5.5138 billion in 2026 and €7.2344 billion in 2027. This means that state investment will be double what it was in 2025 and five times greater than a decade ago.

The Minister for Social Rights outlined the coalition government's measures to improve the long-term care system, which currently supports 1,682,789 people, to extend its coverage and reduce waiting lists. Among these measures, he highlighted the 2021 emergency plan, the amendment to Article 49 of the Constitution, the strategy for a new care model, the funding of the ALS Act and the creation of care level III+ within the care system.

He also emphasised that Spain is the only country that allocated almost €3 billion of European funds to the renovation of social infrastructure, the modernisation of social services and long-term care.

Furthermore, the minister emphasised that the country's demographic trends mean that the demand for care and support is set to rise at an "extraordinarily rapid rate" and that twice as many people will be needed to work within the system.

Social investment with an economic return

Pablo Bustinduy argued that the increase in funding for long-term care will yield economic and social benefits. A study conducted by the International Centre on Ageing, cited by the minister, shows that every euro invested in long-term care generated €1.60 of economic activity and 95,000 direct jobs in the sector. It also indicates that 50% of the total investment returned to the State through social security contributions and taxes.

According to government estimates, the legislation approved today will create 100,000 additional jobs in the sector and generate a return of €3 billion for the public coffers. "Investing in care not only enables us to strengthen social protection and improve the living conditions of those in the most vulnerable positions, but also helps to generate economic development and social cohesion in a sustained and effective manner," the minister concluded.

Amendment to the General Traffic Regulations

The Minister for Inclusion, Social Security and Migration and Government Spokesperson, Elma Saiz, during her speech at the press conference after the Council of Ministers

Elma Saiz, Minister for Inclusion, Social Security and Migration and Government Spokesperson, announced the approval of an amendment to the General Traffic Regulations, the aim of which is to "improve the protection of vulnerable road users". As she explained, the new regulation reflects the "shift in the approach to mobility" that has taken place over the last twenty years, during which there has been a shift "from an approach focused on the road and the vehicle to one focused on people and urban environments".

Elma Saiz pointed out that the regulations are the result of "a process of listening and a great deal of work with associations" and that the vast majority of the observations made during the drafting process have been incorporated into the final text.

Among the main changes, the Government Spokesperson highlighted the enhanced protection of cyclists on intercity roads. Drivers overtaking cyclists must reduce their speed by at least 20 kilometres per hour below the speed limit and, on roads with more than one lane in each direction, must change lanes completely whilst overtaking, "rather than simply maintaining a lateral distance of one and a half metres". In addition, helmets are now mandatory for cyclists on intercity roads and for those who carry out professional activities by bicycle, such as delivery drivers or riders, who must always wear a reflective vest.

On urban roads, cyclists should preferably ride in the centre of the lane, and motor vehicles must maintain a minimum distance of five metres from them. Furthermore, on certain roads with a speed limit of 30 kilometres per hour or less, local councils may authorise cycling in bith directions.

The minister also explained that the reform introduces new obligations for users of personal mobility vehicles, such as a minimum age of 15 to ride them, the requirement to ride with lights on, and the provision that they may only be used outside built-up areas on paths segregated from motorised traffic. In the case of motorbikes, riders are permitted to ride on the right-hand hard shoulder in heavy traffic, at a maximum speed of 30 kilometres per hour and provided that there are specific road signs indicating this. In addition, the use of protective gloves will be compulsory on intercity roads, and closed-toe footwear will be compulsory on all types of roads.

The regulations also introduce new safety measures for pedestrians and drivers. These include a review of the exemptions from the compulsory use of seatbelts, removing those that applied to taxi drivers, delivery vehicles and driving school vehicles, whilst introducing a specific exemption for certain passengers in emergency ambulances. It is also stipulated that vehicles overtaking others that have come to a standstill due to an accident or breakdown must maintain a minimum lateral distance of one and a half metres and reduce their speed by at least 20 kilometres per hour, and pedestrians are required to wear reflective clothing on intercity roads at night or when visibility is poor.

Furthermore, the new regulations include specific provisions for adverse weather conditions. When traffic is hampered by snow on motorways and dual carriageways, overtaking will be prohibited and vehicles must drive in the right-hand lane, leaving the left-hand lane clear to allow emergency services and snow-clearing vehicles to pass.

The Government Spokesperson stated that all these measures will be accompanied by a transition period and "a major information campaign". Saiz argued that these are "groundbreaking measures that make us a leading country in road safety" and pointed out that Spain is about to mark the twentieth anniversary of the introduction of the points-based driving licence, an initiative which, she stated, "has revolutionised the promotion of road safety".

Investments in artificial intelligence and the photonic chips sector

The Minister for Digital Transformation and Civil Service, Óscar López, during the press conference after the Council of Ministers | Pool Moncloa/Borja Puig de la Bellacasa

The Council of Ministers has authorised the payment of a voluntary contribution of 300 million euros to the European High-Performance Computing Joint Undertaking (EuroHPC). This body is responsible for operating AI factories and for promoting the establishment of, and access to, AI gigafactories in the European Union.

The Minister for Digital Transformation and Civil Service, Óscar López, explained that the European Commission had decided that Europe needed to reduce its reliance on other countries for supercomputing capacity and avoid dependence on third parties, which is why it committed to building gigafactories and producing chips and semiconductors.

Furthermore, Óscar López pointed out that a week ago the Government approved an investment of almost 720 million euros to set up a public-private consortium, alongside other leading private companies in the sector, which will compete to host one of the first gigafactories in Europe. With today's investment of 300 million, Spain has fulfilled an essential requirement for submitting its bid.

As the minister explained, a gigafactory means that not only scientists and the public sector will be able to access supercomputing to develop artificial intelligence, but small and medium-sized enterprises will also have access: "It's something that democratises access to artificial intelligence".

Spain now has two AI factories awarded through EuroHPC: the AI factory at the Barcelona Supercomputing Centre and the one at the Galician Supercomputing Centre (GESCA). The minister predicted that if Spain hosts a gigafactory, it will take a giant leap forward and once again become a leader in the supercomputing capacity that Europe needs.

€107 million investment in Multiverse Computing

The Government has authorised the Ministry for Digital Transformation and Civil Service to take a stake in Multiverse Computing, a Spanish artificial intelligence and quantum computing software company, with a public investment of €107 million.

Óscar López emphasised that it is a world-leading Spanish company in the compression of artificial intelligence language models, which enables, for example, energy savings of between 70% and 80%, something that is essential given the energy consumption of data centres.

€24.5 Million Investment in the Atypics Project

The Government has also authorised the Ministry for Digital Transformation and Civil Service to invest €24.5 million in the Valencian photonic chip company Attypics Photonics.

The minister highlighted that the company originated from the Polytechnic University of Valencia and is part of the growing photonics industry in the city.

Institutional Declaration to mark International LGBTI+ Pride Day

The Government has approved an Institutional Declaration to mark the International LGBTI+ Pride Day on 28 June, reaffirming its commitment to equality, freedom and dignity for all people, regardless of their sexual orientation or gender identity.

As the Government Spokesperson explained, the statement highlights the historical significance of this day of remembrance and advocacy, which is linked to the 1969 Stonewall riots, considered to be the beginning of the modern struggle for the rights of the LGBTI+ community. The spokesperson highlighted that Spain is now "an international benchmark in the fight for LGBTI+ rights" and emphasised that, according to the 2026 Rainbow Map, it is "the first country in history to offer the greatest guarantees of rights for the LGBTI+ community across Europe".

However, the minister warned that "cases of discrimination persist" and that "the rise in hate speech means we must remain vigilant and maintain our institutional commitment". She also expressed regret that there continue to be "statements and positions, even in parliamentary chambers", that question the already recognised rights of the community, a circumstance she considers especially worrying. The Government Spokesperson therefore emphasised "the need to continue working, fighting and strengthening the institutional commitment to defending equality, freedom and dignity for all people".

Current affairs: Spain, among the green leaders of Europe

The Ministers for Social Rights, Consumer Affairs and Agenda 2030, Pablo Bustinduy, for Inclusion, Social Security and Migration, and Government Spokesperson, Elma Saiz, and for Digital Transformation and Civil Service, Óscar López

Elma Saiz began her speech by highlighting an article published by *The Economist* which ranks Spain among Europe's green leaders and which, she noted, is in line with the conclusions presented at the 'Green and Digital Spain' conference, held on 22 June, to analyse the impact of the Recovery, Transformation and Resilience Plan in a context marked by geopolitical instability and rising fossil fuel prices.

The government spokesperson explained that the report states that countries such as Spain have managed to "cushion the impact of electricity prices much more effectively" thanks to the roll-out of renewable energy. In this regard, she stated that "Spain is leading the way for Europe's energy future" and that "the results are plain to see". Saiz pointed out that Spain has recorded cumulative growth of 8.5 per cent, "well above the eurozone average", demonstrating that investing in modernisation, the green transition and digitalisation is "an effective way of generating prosperity".

Non official translation