The Catalan government and ERC are close to finalising budget negotiations in Barcelona, with a potential agreement expected next week, according to Europa Press. Both parties are reportedly nearing a deal on the railway orbital, the creation of a state investment company, and the transfer of an undisclosed competence.
ERC's Oriol Junqueras' party will hold a National Council meeting on Monday to assess whether conditions are sufficient to agree on the budget with the government. While the Salvador Illa government has not confirmed a 100% closed deal, officials said negotiations are progressing "well".
Budget Talks Advance
The final stage of negotiations coincided with Illa's institutional trip to California, USA. Speaking to the press, Illa stated, "Regarding the budget, the only thing I expect is that the agreements we have reached with ERC are fulfilled," referring to an approval of the accounts before July. A possible budget agreement next week would follow the Andalusian elections held this Sunday.
Some agreements between the Catalan government and ERC will require the Spanish government's involvement. A bilateral commission between the Spanish and Catalan governments will be held to formalise these agreements. While no date has been set, it is expected to take place next week, after the Catalan agreement, according to sources familiar with the matter.
Negotiations with ERC started from an earlier point compared to those with Comuns. Jéssica Albiach's party had reached an agreement with the executive in February, which included a proposal to limit speculative housing purchases. After the bill's processing failed in March, Comuns advocated for a new budget attempt, warning the government they would want to renegotiate the accounts to make them "legislature budgets."
Renewed Discussions and Key Issues
Recent hours have seen progress between the two sides. Sources from Comuns, while not setting a date for their agreement, do not expect it to be prolonged, as they are building on the "basis" of the previous agreement.
The Illa government aims to pass its first public accounts just three months before the halfway point of the legislature, as the Generalitat has been operating with a prorogued budget since 2023. In February, after agreeing only with Comuns, the government approved the draft law in the Executive Council without ERC's agreement. It had to withdraw the bill from Parliament due to the republicans' 'no' vote, which stemmed from a lack of progress on the transfer of personal income tax (IRPF) collection to the Generalitat. This condition has not been set this time.
ERC has also not conditioned the budget on the educational sector's situation, where major unions maintain strike calls, and following controversy over Mossos d'Esquadra agents infiltrating teachers' union meetings. The republicans have affirmed they have not given up on the IRPF transfer but have decided not to link it to the Catalan accounts. Instead, they aim to achieve it through amendments to the new financing model law, which will be debated in the Congress. This will depend on Junts' votes, and its processing is currently stalled awaiting the Spanish government to convene a Fiscal and Financial Policy Council (CPFF).
Next Steps for Budget Approval
The Catalan accounts could be approved by the Executive Council next week. Following this, the Minister of Economy and Finance, Alícia Romero, would submit the draft to Parliament to begin the legislative process. Departmental ministers would then appear before a commission to explain their respective budgets. The full debate, which ended the previous budget process, would occur in June. The previous attempt failed after ERC presented amendments to the draft, preventing a full debate.
Approximately one month later, the final vote could take place, allowing the new accounts, the first for Salvador Illa's government, to come into force in July. This timeline aligns with the commitment made to ERC after the government's initial attempt failed.
