Briefing
The general secretary of the Unión General de Trabajadores in Castilla y León, Óscar Lobo, sharply criticised the 2027 budget draft of the Valladolid on 16 October 2026 in Junta de Castilla y León . Lobo said the draft contained numerous non-repayable grants to companies and gave the impression of «barra libre para las empresas». According to the union, almost 20 per cent of the planned direct aid was intended to support business activities without sufficient conditions to safeguard jobs or increase wages. UGT therefore called for aid to be tied to binding conditions or, instead, for direct payments to workers to offset losses in purchasing power.
Lobo drew attention to the region’s wage structure: average gross earnings in Castilla y León are below the Spanish average, which is why the union cites an annual gap of around 3,400 euros per employee. Its criticism is that while economic output is rising, wages are lagging behind inflation and the proposed budget does not address this imbalance. Specifically, UGT called for company subsidies to be tied to targets such as creating and retaining jobs, providing training and further training, or achieving concrete wage improvements.
The Junta, led by Partido Popular and Vox, is defending the draft as focused on growth and investment, pointing to increased funding for housing, infrastructure and investment incentives. In the Cortes de Castilla y León the draft will now be debated in parliament; changes to the conditions for allocating funds are possible, but depend on the balance of power and negotiations with opposition parties and social partners.
The debate is part of a broader discussion about the role of subsidies, social partners and redistribution in the region. Trade unions such as Unión General de Trabajadores warn that one-sided support for businesses without conditions could increase income inequality. What is clear is that the budget draft was presented in October 2026, UGT’s criticism was publicly documented and the issue will continue to be considered during the parliamentary process.
Editor: Mira Cadena (Article created with AI assistance).