The plan would have allowed areas with low infection rates to open nightclubs until 3 a.m.
Spanish nightlife rules after regional complaints .
Spain had some of its nightlife back this weekend thanks to a pilot digital pass scheme.
7 out of 10 of the remaining small and medium-sized entertainment companies in the Balearic Islands "are on the brink of bankruptcy."
The Balearic Nightlife Sector generates an annual turnover of 1.4 billion euros.
Spanish Nightlife Sector says the new Ministry of Health campaign stigmatises Entertainment venues.
The majority of the complaints received were for parties held in Majorca and Ibiza.
All Autonomies are obliged to comply with the measures, but each Community can extend the restrictions if necessary.