Catalonia secures budget deal for stability and key investments

President Salvador Illa and ERC leader Oriol Junqueras have signed a budget agreement in Catalonia, ensuring political stability and funding for key projects until at least 2028. The deal, announced on 19 May 2026, focuses on 18 specific areas, including a new orbital railway line, a revised investment company, and strengthening the Catalan Tax Agency.

The agreement also reaffirms commitments from the investiture deal, such as singular financing for Catalonia, income tax collection, airport management, and the write-off of the Autonomous Liquidity Fund (FLA) debt. These measures are designed to provide the necessary resources and political certainty to complete the current Catalan legislative term, which ends in summer 2028, and to plan for several years beyond.

Infrastructure and Investment Boosts

A significant part of the agreement involves infrastructure. A new railway line connecting Garraf with Mataró, bypassing Barcelona, requires a commitment from the Spanish government and the Generalitat. This commitment will be formalised in a protocol of collaboration during 2026, followed by a financing agreement. This will ensure the necessary studies, projects, and construction for the line, prioritising connections with Rodalies lines R8, R4, R3, R2, R1, and the FGC network.

Despite previous setbacks, the Generalitat and ERC are committed to driving, planning, monitoring, managing, and executing state investments in Catalonia. Until a dedicated investment consortium is established, these tasks will be handled by the Bilateral Infrastructure Commission, which must meet at least once a year, according to the agreement text. A new Catalan investment company, fully owned by the state, will be created to conduct studies, draft projects, and ensure the execution of state investments in Catalonia. This change will transfer the entity to Catalan control.

Financial Autonomy and Tax Agency Reinforcement

The agreement also addresses financial autonomy. Both parties reiterated their commitment to developing a new financing model, writing off the FLA debt, and delegating income tax collection powers. Legislative initiatives for the new financing model, agreed with the Ministry of Finance, are expected to be approved in the second half of 2026, aiming for implementation in 2027. Joint efforts will also ensure that laws passed in the Congress of Deputies include the delegation of income tax collection powers. Additionally, parliamentary debate on the partial write-off of the FLA debt is set to start before the end of the first half of this year.

To support these changes, a programme contract will be signed between the Generalitat and the Catalan Tax Agency (ATC). This will provide the ATC with €527 million until 2029, along with the technical and human resources needed to take on tax collection responsibilities. An additional €21 million will be allocated to the ATC in this year's budget.

Social and Educational Programmes

The budget deal includes significant social investments. €50 million will be invested over three years in social networks. Another €35.24 million will go to the Department of Linguistic Policy to expand Catalan language courses, strengthen the Consortium for Linguistic Normalisation, and promote Catalan in audiovisual media, video games, business, healthcare, commerce, and sports, with €10.3 million specifically for sports. Two million euros are earmarked for a new initiative linked to the Casa de Creació, focusing on digital content in Catalan, and €3 million for protecting Catalan language and culture in artificial intelligence.

A special fund of €250 million will be created in the 2026 budget to gradually reduce the historical deficit in Catalan healthcare funding, which causes cash flow issues, according to Economy Minister Alícia Romero. Investment in educational centres will increase to €400 million by 2030. The climate plan, for air conditioning in schools, will receive €100 million for 100 facilities over the 2026-27 and 2027-28 academic years. Furthermore, €50 million will be allocated for primary, secondary, and basic vocational training school vouchers, and €18.82 million for a school library plan covering 2,350 public centres. Finally, reception classrooms will be strengthened with €21 million, creating 250 new classrooms in public centres, 150 in subsidised private schools, and 50 in basic vocational training centres.

Transport and Security Enhancements

The agreement also addresses transport and security. It calls for consolidating the state's commitment of up to €8 billion for the Rodalies 2020-2030 plan, through an agreement by the Mixed Economic and Financial Affairs Commission. The new Rodalies de Catalunya company will be consolidated with the addition of the remaining management team, and the processing of licences to operate as a railway operator will be advanced. The Generalitat will also be incorporated into the governance of the L'Hospitalet de Llobregat Train Driver School, and the transfer of the R1 line is set to be completed this year.

Legislative changes to create the Catalan Airport Authority will be incorporated into the budget measures law during the amendment process. A future Bilateral Commission between the state and the Generalitat will approve the creation of a bilateral body to coordinate the governance of Catalonia's airport system. An airport system strategic plan will also be approved, covering territorial, urban planning, environmental, and accessibility aspects.

Regarding security, the Generalitat must reach 25,000 Mossos d'Esquadra agents by 2030, as agreed in February 2025. The agreement to transfer citizen security powers in all Catalan ports and airports must be met, and 180 new judicial positions will be created in Catalonia between this year and 2027.

Housing and Rural Development

A plan for the rehabilitation and recovery of degraded residential areas will be approved. This three-year programme will have a team of twenty people and an annual budget of €160 million, plus an ICF financing line of €50 million annually, totalling €210 million for building rehabilitation. Another plan, extending until 2030, is endowed with €400 million. It targets 730 municipalities with fewer than 5,000 inhabitants, 63 decentralised municipal entities, and regional capitals with fewer than 15,000 inhabitants.