The legislative agreement between PSOE and Sumar covers several major reforms, including a focus on boosting train travel and extending extraordinary taxes on banks and energy firms, alongside raising the minimum wage.
1. Short flights
The transport plan frames high-speed rail as the future, stating that short flights should be replaced by train travel wherever possible. The agreement uses the term impulse to describe the push toward rail when feasible. It also mentions mitigation in a manner similar to neighboring countries. On domestic routes with viable rail alternatives under two and a half hours, the pact limits air travel, except for connections to hub airports serving international routes. Spain currently has five routes where a train under 2.5 hours could replace flying between Madrid and Barcelona, Valencia, Alicante, Malaga, and Seville. Airlines have historically opposed reducing these domestic flights, though the practical impact may be modest due to limited alternative routes.
2. Public air service
Among the pact’s new provisions is a pilot program for the Air Public Service Obligation, sometimes described as a public air service initiative. Minorca and Barcelona are testing this approach, with the possibility of extending successful results to Ibiza and Menorca connections to Madrid, Barcelona, and Valencia if the pilot proves effective.
3. New regulator
The agreement introduces the idea of a new regulator, described as a specialist agency with adequate resources to modernize energy regulations and prepare the system for climate neutrality. The minister emphasized that auditing and monitoring energy compliance by all actors will be strengthened, and the regulator will help align policy with the country’s climate goals.
Currently, many of these functions are handled by the National Markets and Competition Commission (CNMC), established in 2013 to oversee competition across energy, telecommunications, postal, audiovisual, railway, and airport sectors. The accord does not directly restructure the CNMC, but it calls for tools to limit excessive market concentration and to promote competition through robust regulation and oversight. It also notes ongoing review under the Law on the Protection of Competition and the CNMC’s mandate.
4. Benefits from electricity reform
The plan includes continuing reforms to the wholesale electricity market to remove elements considered harmful and to curb the windfall gains often labeled as benefits falling from the sky. This agenda mirrors earlier coalition discussions and reflects the energy crisis context. The most immediate action has involved reducing revenue from nuclear and hydro producers, temporarily limiting certain energy contracts to 67 euros per megawatt-hour until December 31. The stated aim is to pass renewable energy benefits to consumers, lowering household and business electricity bills while ensuring reliability and signaling investment opportunities.
5. Help with electricity bill
Another objective is expanding consumer support for electricity bills through the social electricity benefit. Although the current reach covers around 1.5 million beneficiaries, this is viewed as insufficient relative to the scope of energy poverty. The strategy calls for strengthening protections for vulnerable users, with social services and consumer bodies collaborating with social institutions to widen coverage. The plan proposes doubling the number of households eligible for the social electricity bonus. At present, eligibility relies on income criteria and is not fully automatic, which has limited uptake.
6. Promote the Mediterranean Corridor
The agreement also pushes for expanded funding and faster progress on the Mediterranean Corridor, aiming to link the southeastern Iberian coast with France. Specific support is outlined for the Bobadilla-Algeciras connection due to its strategic importance for the Atlantic Corridor, and for the Sagunto-Zaragoza-Bilbao axis as priority routes for the Valencia rail link. Reopening the Zaragoza-Canfranc-Pau line and promoting the Cantabria-Mediterranean corridor are also highlighted as priorities.
7. Rational use of renewable hydrogen
On energy policy, the plan emphasizes the thoughtful deployment of renewable hydrogen. The focus is on technical and economic feasibility and on Spain’s potential to use hydrogen to replace fossil fuels in challenging electrification contexts such as heavy industry, certain ground transport, aviation, and maritime shipping. While renewable hydrogen projects are expanding, development remains in early stages. The document notes this energy vector, while not detailing every proposal, as a strategic element for future corridors that could connect the Iberian Peninsula with broader European networks. At a recent industry briefing, a Sumar representative cautioned against some proposed cross-border hydrogen projects, highlighting the need for careful evaluation of costs and benefits.