The Catalan government and Esquerra Republicana de Catalunya (ERC) are finalising the details of their 2026 budget agreement in Barcelona. This development comes after President Salvador Illa withdrew the initial budget proposal from Parliament.

ERC has also softened its demand regarding the collection of income tax (IRPF), agreeing to address this issue at a later date. Both parties are negotiating behind the scenes to present the accounts shortly after the Andalusian elections, specifically the week of 18 May.

Budget Negotiations Progress

The previous budget project faced significant hurdles, leading to its withdrawal. The current discussions aim to secure the necessary political backing for the 2026 financial plan. Officials are working to ensure the new proposal can gain parliamentary approval, providing stability for public services and investments across Catalonia.

The timeline for the budget's presentation is strategically set to follow the regional elections in Andalusia, allowing for a clearer political environment. This approach seeks to minimise potential disruptions and focus public attention on the economic plan for Catalonia.