Esquerra Republicana de Catalunya (ERC) has announced its support for the Catalan government's budget, led by President Salvador Illa. The decision, made public shortly after the Andalusian elections, will see ERC's national council vote on the agreement, which is expected to pass without difficulty.
This move comes two months after the Illa government withdrew its previous budget proposal from the Parliament of Catalonia. ERC had initially refused to back it, citing a lack of commitment to the Generalitat collecting 100 per cent of income tax (IRPF), a key point from Illa's investiture agreement. While the IRPF commitment is still not fully secured, ERC has now agreed to support the budget after securing a pledge from the Socialist Party of Catalonia (PSC) to revive the orbital railway project.
Orbital Railway Project Revived
The orbital railway project, which has been shelved for 15 years, is a significant part of the new agreement. Its implementation will depend on the Spanish government's willingness and financial backing. ERC requires the Spanish government to formally commit to this project, even though its execution timeline extends beyond the current legislative period. This commitment is expected to be discussed at a bilateral Generalitat-state commission meeting scheduled for later this week.
Once ERC's national council approves the agreement, President Illa and ERC President Oriol Junqueras are expected to sign it this week. This will allow the government to approve the budget in an extraordinary executive council meeting and then submit it to the Parliament of Catalonia with the assurance of its approval. The parliament will have 40 days to pass the budget, with the government aiming for approval by the end of June or early July.
Political Context and Teacher Protests
The budget agreement arrives amidst political turbulence for the Illa government. Teachers across Catalonia have been striking and mobilising, demanding better salaries and working conditions. The government is also facing scrutiny over the alleged infiltration of Mossos d'Esquadra agents into a teachers' assembly. Oriol Junqueras had previously called for the dismissal of Josep Lluís Trapero, the police director, but ERC quickly clarified that this would not be a red line for budget approval.
Despite the initial demand for 100 per cent IRPF collection not being fully met, ERC states it will continue to pursue this claim. The negotiations also covered several other sector-specific issues not directly linked to the budget. For example, ERC and government negotiators discussed establishing a commercial company to replace the investment consortium that the Spanish Congress rejected with votes against from Junts. Among the additional promises in the agreement, Illa committed to the Generalitat participating "quite immediately" in the management of Catalonia's airports, including Barcelona's El Prat.
