Oriol Junqueras: "It's a completely new model and we'll be light years ahead of where we were until now."
President of ERC
BarcelonaThe president of ERC, Oriol Junqueras, is boasting about the agreement reached on the new financing model, emphasizing that no other Catalan government has ever achieved such high levels of economic sovereignty.
Do we have a reform of the system or a new financing system?
— We have a new financing system and it is new for many reasons, not only because of the amounts, but also because of the way they are distributed and collected.
Could the calculation with the adjusted population be done better?
— The adjusted population can certainly be calculated in many ways. In any case, all funding models, and indeed all budgets, are based on adjusted population because, without it, those territories with smaller populations would receive virtually no funding, and the least densely populated regions of Catalonia would have practically no public services. If this new model is not approved, 4.7 billion euros will not reach the pockets of Catalan families.
Together they oppose and demand the economic agreement.
— We respect the opinions of all parties. If I were to write a scathing headline here now, what would be the point?
But the new model will have to be negotiated with these political forces.
— We've been talking to everyone for many months, but ultimately there will be a vote. And that vote will decide whether these resources go to Catalonia or remain with the Ministry of Finance. Therefore, I don't know exactly where the agreement will lie. Among other things, because the political parties that will have to vote on this funding model defend opposing positions. So, it's not easy.
Is this a vote on this model or could there be changes?
— If someone can modify it and convince everyone who will have to vote on it, we'd be happy to work with them. But none of these parties can afford to fail. If just one fails, the model won't be approved and the €4.7 billion won't arrive. We're confident that everyone will act responsibly.
Are these 4.7 billion euros enough?
— We always want more. We want the independence of Catalonia and we will do everything possible to achieve it, but unfortunately there is no pro-independence majority in the Catalan Parliament. So how can we help Catalonia now? With a new funding model. Catalonia certainly deserves more. And, moreover, it would be fair. Of course, but I insist, we need a model that all these political forces can also vote for, because if the model were the one Esquerra wants, there wouldn't be a majority in Congress to approve it. And, therefore, de facto We would be giving up on having a new funding model and providing Catalonia with these resources. We are convinced that the best possible outcome is what we have already agreed upon. There is still much work to be done. We are currently negotiating the collection of 100% of the Personal Income Tax (IRPF).
Should Catalonia therefore accept that, at this time, within Spain, the fiscal deficit must remain at 8% of GDP?
— This agreement entails a significant reduction in the fiscal deficit. And if anyone can convince all the other political forces that they are essential to reducing it even further, we would be delighted to join them.
As a former Minister of Economy, is the most useful aspect of this new financing system not having to make advance payments?
— The advance payment is unfair because it delays the receipt of a significant portion of the funds for two years. Furthermore, the Spanish government, and in particular the PP government and Cristóbal Montoro's ministry, used it as a tool for pressure and blackmail against the Catalan government, because it calculated these advance payments too low. Consequently, Catalonia received far less than it was entitled to and had to wait two years to rectify the situation. The new model will offer the option of eliminating the advance payments, and Catalonia will do so. The funds collected each year will then be immediately put at the service of Catalan society. This represents a change in the model and is a key element of Catalonia's unique situation.
Minister Montero has not spoken of uniqueness, only of the transferred powers that other communities lack.
— Catalonia will collect 100% of the personal income tax and administer 78.5% of the VAT. Therefore, it is clearly a new model, entirely new, because we will be light years ahead of where we were until now. Catalonia will be more self-reliant and much less dependent on transfers from the Spanish state. And these are entirely unique elements that no one else will have. Either because they don't have homogeneous powers, or because they won't have additional VAT revenue, or because they won't be collecting 100% of the personal income tax.
Is Catalonia prepared to collect income tax?
— Yes, we are prepared.
According to the Government, not yet.
— It will be in the future. And Esquerra Republicana is such a responsible and generous party that it will make sure the Catalan government knows how to do it.
But it is not known when it will become a reality.
— 55% of personal income tax, 56.5% of VAT, and 58% of excise taxes. That's what we agreed upon. Non-homogeneous powers exist and will have to be financed with a minimum of 3.1 billion euros.
When will this 78.5% VAT and 100% income tax be effective?
— The 78.5% VAT increase must be agreed upon bilaterally once the new model is approved. As for the collection of 100% of personal income tax, that will only happen when both governments are willing to begin budget negotiations. Otherwise, there will be no budget negotiations.
Therefore, Esquerra links the budgets to the personal income tax.
— We have the tools to pressure the Spanish and Catalan governments through budget negotiations to secure a better funding model or to collect 100% of personal income tax. This doesn't mean we don't want budgets. We do want budgets. We want all institutions to have budgets. Because we understand that the challenges facing Catalan society are very significant. And the more tools they have, the better.
You have always been very skeptical about the reliability of the Spanish government's word.
— History compels us to be very skeptical, yes, but it's also good to be aware of the power we possess. And we must use this power as much as we can. And if everyone joined us, it would obviously be easier and faster. The funding model has been outdated for 14 years. Why has no one tried to update it? Only Esquerra Republicana has tried, and no one has been willing to join us.
But ERC has been in the Government for many years and has refused to negotiate a new financing model.
— What we've tried to do is avoid ever having to negotiate with the Spanish government again for Catalonia to have full powers. Unfortunately, at this moment, there isn't a majority in Catalonia, reflected in the Catalan Parliament, that wants this, which ERC does. If that majority isn't there, what should we do? Well, try everything possible. Always do the best we can. And right now, the best we can do is this, and this is what we're doing.. As soon as we can, we'll try to go further. But in the meantime, we must do everything we can to help the families in that country. Because people are struggling to make ends meet right now.
How many times has the negotiation been on the verge of breaking down?
— Often because it's a very difficult negotiation. Achieving ordinality is very difficult, and the proof is that no one had ever managed it before. Neither the governments of Jordi Pujol, nor those of Pasqual Maragall, nor those of José Montilla, nor that of Artur Mas achieved it. The Ministry of Finance finds it very difficult to understand and accept the transfer of personal income tax revenue.
Does it have the party's internal endorsement?
— Absolutely. I've always felt strong, and now even more so, of course.
He wasn't always strong. There have been difficult times.
— Yes, there have been difficult moments, but we've overcome them. So, united as we were, we've overcome them. And that makes it all the more commendable. I feel very supported, and the people who worked on this negotiation deserve everyone's respect, without exception.
The condition the party set for investing Salvador Illa was fiscal sovereignty for Catalonia.
— We are currently engaged in specific negotiations regarding the financing model, but other issues remain. And some of these issues are a prerequisite. sine qua non to begin budget negotiations. Esquerra Republicana is in a hurry for the country, and it's a shame that only we seem to notice. Folder by folder, and party by party. If the negotiations drag on, it will be the PSOE's responsibility for the lack of a budget.
Farmers are protesting over the Mercosur issue. How does this affect them?
— If we have more resources, we can put more resources at your service. For example, last April, in April 2025, Esquerra Republicana promoted the approval of a decree increasing the budget allocation associated with the extension of the budget for the modernization of agriculture. We are the ones who have fought hardest to provide resources to the farmers of this country, and we will continue to do so. And the new resources will be noticeable, although it is clear that it will depend on how they are distributed in a budget agreement. You will always have us by your side.