Catalonia’s ERC party reaffirmed its opposition to negotiating the Generalitat’s 2026 budget Friday, following a meeting with Spanish Prime Minister Pedro Sánchez, citing insufficient commitments from the PSOE regarding Catalonia’s control over personal income tax (IRPF) collection.
The meeting, held at the Moncloa Palace, focused on the IRPF issue, a key demand from ERC for engaging in budget negotiations, according to sources within the party confirmed to EFE. Despite the discussions, no explicit agreement was reached, leaving the situation unresolved.
ERC had earlier this week withdrawn a proposed law, deeming it more viable to pursue amendments to the new financing model that would include the transfer of IRPF management to Catalonia. Oriol Junqueras, ERC’s leader, publicly urged the PSOE on Monday to demonstrate support for this approach.
The impasse comes despite a January 8th agreement between Sánchez and Junqueras on a new financing model for Catalonia, which Junqueras described as a win-win scenario, incorporating the principle of ordinality – ensuring Catalonia receives funding proportionate to its contribution to the Spanish state. That agreement, which could channel an additional €4.7 billion to Catalonia, is contingent on Congressional approval.
Catalan President Salvador Illa, though, reiterated his “total commitment” to the investiture agreements, particularly regarding the advancement of Catalan financial autonomy and the assumption of IRPF management. This move faces opposition from the Spanish Treasury.
ERC is scheduled to hold an executive meeting Saturday, followed by a council meeting – the party’s highest decision-making body – where Junqueras will brief leaders on the state of negotiations. Junqueras is slated to address the media at 12:30 PM local time.
Sources within ERC have expressed “disappointment” with initial statements from President Illa regarding the IRPF issue following his return from a month-long leave of absence, highlighting internal tensions within the Catalan government.
