The Catalan government and Esquerra Republicana de Catalunya (ERC) have formally signed the 2026 budget agreement in Barcelona, marking the first budget of President Salvador Illa's term. The agreement, described as "extensive and ambitious" by Economy Minister Alícia Romero, outlines key demands from ERC in exchange for their support.
The primary focus of the negotiation was the orbital railway line, a project shelved since 2010. The pact also includes establishing a commercial company to oversee state investments, giving Catalonia a majority stake in the Consorci de la Zona Franca, and strengthening the Catalan Tax Agency. President Illa and Oriol Junqueras of ERC formally signed the document at the Palau de la Generalitat.
Orbital Railway and Rodalies Investments
The agreement for the orbital railway line, which will connect the second metropolitan ring without passing through Barcelona, was sealed a day before the budget signing in Sant Sadurní d'Anoia. This infrastructure is planned for completion by 2041, with execution over the next 15 years. "If we want territorial cohesion, we must be well connected," Romero stated.
Funding for this project will come from the Spanish state. The agreement requires a "collaboration protocol between the administrations involved" to be established in 2026, leading to a "financing agreement" to ensure the project's execution. However, specific details of this protocol are not yet defined. A monitoring committee involving both the state and the Generalitat will also be formed. The commercial company overseeing state investments will manage this project.
Beyond the orbital line, the budget pact also includes continued investment in Rodalies commuter rail services. It aims to consolidate the state's commitment of up to €8 billion for the 2020-2030 Rodalies Plan and to establish the new Rodalies de Catalunya company as a railway operator. The agreement also plans to complete the transfer of the R1 line by the end of 2026 and to accelerate the transfer of the R2, R3, and R4 Nord lines.
Investment Oversight and Tax Agency Reinforcement
Another point in the document, stemming from the investiture agreement between ERC and the PSC, is the creation of a joint consortium between the state and the Generalitat to promote, plan, monitor, manage, and execute state investments in Catalonia. This proposal faced opposition from Junts in the Congress, leading to the alternative of a "commercial company" to bypass parliamentary vetoes, according to Romero. Until the consortium is formed, investment monitoring will occur through the Bilateral Infrastructure Commission with the state, which must meet at least once a year.
To support IRPF income tax collection, the PSC and ERC have agreed to allocate €500 million to strengthen the Catalan Tax Agency (ATC). This will be achieved through a four-year programme contract for "digital transformation, talent acquisition, and organisational change" within the agency. The 2026 budget includes an initial €21 million for this initiative.
New Funding Model and Consorci de la Zona Franca
The transfer of IRPF collection, previously a red line, is mentioned in the pact without a specific timeline for its re-opening. The agreement states that efforts will be made "so that the laws eventually approved in the Congress of Deputies incorporate the delegation of powers in IRPF collection." A date has been set for a new funding model, with a law expected to be approved in Congress in the "second half of 2026" to be effective by 2027.
As announced over the weekend, the agreement includes modifying the participation of various administrations in the Consorci de la Zona Franca. This change will give Catalonia, specifically the Generalitat and Barcelona City Council, a majority stake of 55% in the entity. The signed document states, "In this way, the Government of Catalonia assumes the governance of a strategic element for international projection, industrial and logistical activity, and the generation of opportunities for the country."
Airport Governance and Catalan Language Promotion
Regarding El Prat Airport, the agreement includes the creation of a Catalan Airport Authority, with its enabling law to be part of the budget's accompanying measures law. Additionally, a "bilateral body" between the state and the Generalitat will be established to "coordinate the governance" of the airport system.
A dedicated chapter of the agreement focuses on promoting the Catalan language. Beyond implementing the National Language Plan, Romero highlighted a programme to strengthen Catalan on social media. The government commits €50 million over three years to develop digital content in Catalan for digital platforms. An extra investment of €35 million in 2026 is also planned to reinforce the Department of Linguistic Policy.
Education Investments
Amid ongoing strikes and protests by teachers demanding better working conditions and more resources, the agreement includes a chapter for the education sector. Key investments include a plan to reach €400 million in educational centre investments by 2030, aimed at reducing temporary classrooms. A climate plan for heating and cooling centres, with €100 million allocated for the next two academic years, is also included. The creation of 250 new reception classrooms and an additional €3.7 million for Special Education Centres are also part of the plan.
The government is expected to approve the budget in an executive council meeting this Friday. Before this, the State-Generalitat Bilateral Commission will meet in Madrid on Wednesday to validate the parts of the agreement with ERC that depend on the Spanish government, such as the orbital line and the commercial investment company. The government also needs to review the budget agreement with its other essential partner, the Comuns, who have requested updates on housing and mobility issues. Romero expressed confidence that work to "complement" the agreement with the Comuns will be successful.
