ERC announces a comprehensive amendment to the budget while the Catalan government demands "responsibility"

BarcelonaThe leader of ERC, Oriol Junqueras, continues his standoff with President Salvador Illa over the budget. After the head of the Catalan government announced that will approve the accounts despite not having secured Esquerra's endorsementThe Republican leader issued a warning to the government on Tuesday: "Don't escalate conflicts you can't win." Speaking to Catalunya Ràdio, Junqueras confirmed that his opposition to the budget will remain if the Socialists, through the Ministry of Finance, do not make progress on the issue of income tax collection in Catalonia. He also stated that, if this does not happen, they will present a comprehensive amendment to the budget. As if it were a game of ping-pong, Junqueras's words were preceded by the Catalan government's announcement that the draft budget will increase spending by 9.1 billion euros compared to 2023, when the figure reached 41.025 billion. This was confirmed by the Minister of Economy, Alícia Romero, in statements to the Catalan News Agency (ACN), where she urged the Republican Left of Catalonia (ERC) to act with "responsibility" to avoid losing "resources, management capacity, and effectiveness."

The Minister of Territory and spokesperson for the Catalan Government, Sílvia Paneque, reiterated this point a few hours later, defending the executive's decision to present the budget on Friday and begin its parliamentary process. "Catalonia cannot wait any longer, but we maintain our open hand to ERC for negotiation. The channels remain open," she stated at a press conference following the executive council meeting. Paneque defended the Government's decision to approve the budget without having secured ERC's support because waiting "was no guarantee" that the Republicans would ultimately join, she said. Comuns, , the other leg of the budget agreementShe has called on the government and the Republicans to reach an agreement and expressed confidence that there is still room for understanding: "There is room for negotiation. Catalonia needs a budget," argued its leader in the Catalan Parliament, Jéssica Albiach.

Personal Income Tax Revenue

The sticking point remains the collection of personal income tax (IRPF), which the Spanish government continues to block. Salvador Illa pledged last week to honor the agreement signed with the Republicans, but Junqueras—after a meeting with Spanish President Pedro Sánchez last Friday—confirmed that the PSOE is not open to supporting the necessary legislative changes to enable this collection. "The Socialist Party has not kept its promises," he insisted on Tuesday. Paneque avoided commenting on the position of the Ministry of Finance and focused on emphasizing Salvador Illa's commitment to fulfilling this agreement, despite stressing that the Catalan government is "working" on this issue with the Spanish executive. "There are things that can't be done overnight, like personal income tax, which requires strengthening the Catalan Tax Agency, increasing staff. There are things that can't be done from one day to the next," he stated. The government spokesperson also defended the Vice President and Minister of Finance, María Jesús Montero, against criticism from ERC. "There was much speculation about the Vice President's role, and she herself has defended the financing agreement," Paneque stated. "Some issues require consensus," she added, referring to the Personal Income Tax (IRPF). Both Paneque and Romero reiterated that the Socialist government "honors its agreements" and assured that, just as it has made progress with the financing model and the investment consortium, it is "also working on the IRPF," the Minister of Economy affirmed. In this regard, she believes they have "generated sufficient trust" for ERC to join the budget agreement. "They have the President's word, they have the track record of this past year and a half of fulfilling crucial agreements," Paneque added, also citing the start of the Rodalies commuter rail transfer as an example.

The credit supplement scenario

The Republicans maintain that if Catalonia ends up without a budget, they will negotiate supplementary credits to "guarantee resources" for the country, and they want to make clear their rejection of the pressure the executive has been putting on them in recent days. However, according to Paneque, the Catalan government is currently not considering "any scenario" other than having a budget and has thus avoided commenting on the offer from ERC. After reaching an agreement with the Comuns, the government also finalized a budget agreement with unions and employers' associations this Monday. The executive, therefore, is avoiding, for now, considering the scenario of not having a budget for 2026. But Junqueras has commented on this possibility and that this failure could lead to early elections. The Republican leader has assumed that the PSC would not obtain a sufficient majority and that it would lead the country to successive repeat elections. "They won't call elections, and if they do, it will be another mistake," he said. "All the polls say that ERC is rising and the PSC is falling," he added.

The PP has already confirmed its amendment to the entire budget. The PP spokesperson in the Catalan Parliament, Juan Fernández, justified this by asserting that the budget to be approved by the Catalan Government does not deserve "partial adjustments" and labeled the negotiations a "farce." The CUP also suspects that the "tug-of-war" between the Republicans and Socialists masks a real disagreement, while Junts believes that the Government's decision to approve a budget without securing the necessary support demonstrates "instability." Furthermore, the Junts spokesperson, Salvador Vergés, has criticized the executive's agreement with the Commons on housing"President Illa is the one who allowed Colau to occupy the Palau," he complained. Vox has again called for elections in response to what it calls a "major swindle" in the regional audits.