Pedro Sánchez and Yolanda Díaz negotiate the social shield due to the effects of the Iran war: the Council of Ministers begins after the biggest government crisis to date

The direct negotiation between president and vice-president unblocks the decree after the clash over the extension of rents and allows to channel the package of social and energy measures

of march 20, 2026 at 11:37h
EuropaPress 7160173 presidente gobierno pedro sanchez vicepresidenta segunda ministra trabajo
EuropaPress 7160173 presidente gobierno pedro sanchez vicepresidenta segunda ministra trabajo

The President of the Government, Pedro Sánchez, and the second vice-president, Yolanda Díaz, have managed to channel the internal crisis in the Executive with a principle of agreement on the so-called social shield to face the effects of the war in Iran. The negotiation, carried out at the highest level between both leaders, has allowed to unblock a situation that had strained the coalition to the maximum.

The disagreement focused mainly on the inclusion of the extension of the rent moratorium within the urgent measures decree. While the socialist wing of the Government advocated limiting the package to energy measures, Sumar defended maintaining social protections, especially for vulnerable tenants. This discrepancy led to the delay of the extraordinary Council of Ministers convened to approve the plan.

According to what the program Mañaneros 360 has advanced, the conversations between Sánchez and Díaz have led to a preliminary agreement that would allow integrating both the energy package and part of the social shield. This advance paves the way for the approval of the decree, which includes measures such as the reduction of VAT on fuels, electricity and gas, as well as the reduction of other energy taxes.

Executive sources indicate that the understanding has been based on “balancing the economic response with social protection”, in a context marked by the impact of the international crisis. From Sumar they had insisted that “families cannot be turned their back on” at a time of strong pressure on the cost of living, while the PSOE emphasized the need to act quickly on the price of energy.

The principle of agreement not only allows saving the decree, but also lowering the tension within the Government. Pending the final details, the pact reinforces the path of understanding between both partners and opens the door for the package to be approved and subsequently validated in Congress next March 26.

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Daniel Martínez

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