Madrid will exercise popular action: what it implies for companies and citizens in 2026

Key data

Since April 15, 2026, the Community of Madrid has the legal capacity to act as an accusing party in certain judicial proceedings, even if it has not suffered direct harm. This is established by Law 1/2026, of April 15, published in the BOE on May 11, 2026 with reference BOE-A-2026-10120.

In practical terms: the Madrid regional administration no longer needs to be a direct victim to appear in a lawsuit. It can do so in the name of the general interest, in the areas that the law itself defines. This changes the procedural balance in Madrid in a relevant way.

What does this regulation establish?

Popular action is a legal mechanism that allows certain subjects—usually citizens or organizations—to exercise prosecution in a criminal or civil process without being the direct victims. Until now, autonomous communities had more limited ordinary procedural legitimacy.

Law 1/2026 changes this for Madrid explicitly:

• It enables the Community of Madrid to exercise popular action in certain areas that the law itself defines.
• It grants it active legitimacy in cases of general interest, without needing to prove direct harm.
• It allows it to initiate or join criminal or civil actions in those specific matters.
• It expands the procedural capacities of the Madrid regional administration compared to its previous situation.

The result is that the Community of Madrid shifts from being a reactive procedural actor—which could only act when directly affected—to being able to take judicial initiative in matters of collective interest.

The law does not specify in the published summary which exactly those delimited areas are, so to know the full scope it is necessary to consult the full text in the BOE.

Economic and operational impact

This law does not generate direct costs or fees for companies or citizens. Its impact is procedural and strategic in nature, but with real and indirect economic consequences:

• Greater exposure to litigation: Companies operating in the enabled areas may be involved in judicial proceedings initiated or supported by the Community of Madrid, with the legal defense costs that entails.
• Change in the balance of power: The regional administration gains procedural pressure capacity in sectors of public interest, which can influence negotiations, concessions or contracts with the administration.
• Reputational risk: Being a party in a judicial proceeding in which the Community of Madrid acts as an accuser has a significant reputational impact, regardless of the final outcome.
• Implications for legal defense: Companies will need to strengthen their legal advice in the affected areas, anticipating that the regional administration can act as an active party in proceedings that it could not previously initiate.

Who does it affect?

• Companies with activity in Madrid in the areas that the law expressly enables.
• Citizens and entities subject to judicial proceedings in those matters.
• Legal operators (lawyers, legal advisors) who must anticipate the appearance of the Community of Madrid as an accusing party.
• Other public administrations whose balance of procedural powers with the Community of Madrid is modified.
• Concession companies or contractors of the Community of Madrid in areas sensitive to the general interest.

Practical example

Imagine a company operating in a sector of public interest in the Community of Madrid—for example, in the area of essential services or management of collective resources—and which is investigated for an alleged irregularity that affects the general interest but in which the Community of Madrid has not suffered direct and concrete economic harm.

Before Law 1/2026, the Community of Madrid could not have appeared as an accuser in that proceeding, as it lacked active legitimacy by not being a directly harmed party.

With Law 1/2026 in effect since April 15, 2026, the Community of Madrid can appear as an accusing party in that same proceeding, exercise popular action and drive the judicial process in the name of the general interest. The investigated company thus faces an additional procedural actor with the resources and legal capacity of a regional administration.

This implies for the company: greater procedural pressure, higher legal defense costs and a reputational risk associated with the public visibility that usually accompanies the judicial action of an administration.

What should companies do now?

1. Consult the full text of Law 1/2026 to identify exactly which areas the Community of Madrid is enabled to exercise popular action in. This is the most urgent step.
2. Evaluate whether your activity fits in those areas with the support of specialized legal advice in procedural and administrative law.
3. Review your company's procedural exposure in current or potential judicial proceedings in which the Community of Madrid could have an interest in appearing.
4. Strengthen your regulatory compliance strategy in the affected sectors, thus reducing the risk of being the subject of a popular action by the regional administration.
5. Update legal risk management protocols to include the possibility that the Community of Madrid acts as an accusing party in proceedings relevant to your business.

Official source

Notice: This article is for informational purposes only and does not constitute legal advice. The information contained herein is based on the regulation cited and is current as of the publication date. For specific legal advice regarding your situation, consult a qualified legal professional. CambiosLegales and its authors are not responsible for the use made of this information or for any damages arising from its application.