If parliament votes to approve the bill, rail infrastructure investment alone will fall by 26% from €5.11bn this year to €3.78bn in 2013, but will still retain its position as the department's top priority with a 50% quota over the total budget. Almost seven Euros out of every 10 allocated towards rail investment programmes will be used to push ahead with the country's extensive high-speed network construction programme to connect all 15 mainland regions.

However, Spain's government will reduce the amount allocated to cover Renfe's regional and suburban services operating deficit by 43% to €480m during the next year.

According to Renfe's own budget, the state-run company will close 2012 with a loss of just €17m, but this will increase tenfold in 2013 to €172m, mainly as a result of the consolidation with loss-making, narrow-gauge operator Feve. Despite its network of only 1250km, Feve will close its final fiscal year with a loss of €172m and €38m in revenues.