The Council of Ministers this Tuesday advanced two major legal steps by issuing a royal decree. The decree reforms Civil Service oversight and adjusts the patronage framework, moving ahead despite the parliamentary delay caused by the early elections called for 23-J. These measures, paired with commitments tied to the plan for the fourth payment of European funds, aim to meet the government’s obligations and accelerate progress on European Union support totaling 10,000 million.
The approval of these reforms, along with the extension of unemployment benefits, clears the way for the government to request the fourth tranche of NextGenerationEU funds from the European Commission this Wednesday. This update came from the Minister of the Presidency, Félix Bolaños, during a press conference after the Council of Ministers meeting.
Government to approve Civil Service reform by decree after reaching agreement with Brussels
public function
The Civil Service reform, now endorsed by the government, had previously been captured in a draft law that was shelved due to the political timing of elections. The reform centers on introducing mandatory performance evaluations that assess professional conduct and overall staff effectiveness. The objective is to raise productivity and improve the quality of public services. The process included clear consultations with trade unions and public communication to explain the changes. The initial draft was not adopted at the time.
In this framework, the performance evaluation is designed to be a constructive tool. It does not automatically strip civil servants of their status if they do not meet certain benchmarks. Instead, the reform emphasizes opportunities for training and upskilling, giving employees the tools needed to perform better. Those who succeed in the evaluations can expect tangible benefits across several variables, with wage components being particularly significant. The intention is to pair accountability with incentives to boost service delivery.
Patronage law
The amendment to the Patronage Law seeks to strengthen the incentives for charitable giving by individuals, companies, and non-residents. For individuals, the ordinary deduction rate would rise from 35% to 40%, expanding the impact of philanthropic donations. In parallel, the amount eligible for deduction under crowdfunding would increase from 150 euros to 250 euros, enabling a broader portion of donations to qualify for the favorable tax rate, as an 80% deduction would apply to a larger base.
Additionally, the rule regarding the number of fiscal years required to claim a deduction has been adjusted. The period to demonstrate consistent donations has been shortened from four years to three years, enabling those who maintain giving to receive a higher deduction—up to an increase of 5 percentage points, moving certain scenarios to a 45% deduction rate.
For corporate donors, the deduction rate would also rise, ranging from 35% to 40%, with the overall incentive strengthened. The minimum period to accumulate benefits has similarly been reduced from four years to three, enabling a potential 10-point boost in the deduction percentage, with the eventual rate reaching up to 50% in aligned cases.