Orbital line, funding and Catalan boost: Government and ERC agreements for the budgets

BarcelonaThe agreement between the Govern and ERC for the 2026 budgets, the first of Salvador Illa's presidency, is now signed. The president and Oriol Junqueras have signed the document in a brief ceremony early this morning at the Palau de la Generalitat, after the Republicans formally gave their yes to the accounts this Monday. The Minister of Economy, Alícia Romero, has given all the details in a press conference early this morning and Junqueras will appear later, around half past eleven.

Republicans formally gave their yes this MondayOrbital line

The agreement signed this Tuesday arrives 24 hours after the Govern and Esquerra sealed the pact for the fourth ring railway in a joint event in Sant Sadurní d'Anoia. This project, shelved since 2010, has been the main unlocker of the budget negotiations. The timeline they have agreed is that the infrastructure, which will connect the second metropolitan ring without passing through Barcelona, will be executed in the next 15 years and will be completed in 2041. "If we want territorial cohesion, we have to be well connected," Romero claimed.

will connect the second metropolitan ringInvestments in Commuter Rail

The minister has highlighted that, in addition to the orbital line, the pact also includes the "continued impetus in Cercanías investments". Specifically, it foresees "consolidating the commitment" of the State up to 8,000 million euros for the Cercanías Plan 2020-2030 and "consolidating" the new Cercanías de Cataluña company so that it can begin operating as a railway operator. Likewise, it is agreed to finalize the transfer of the R1 within 2026 and to "accelerate the work" for the transfer of the R2, R3, and R4 North.

Investment Consortium

Another of the points in the document, and which stems from the investiture agreement between ERC and the PSC, is the constitution of the parity consortium between the State and the Generalitat de Catalunya for "the promotion, planning, monitoring, management and execution" of State investments in Catalonia. The proposal met with a 'no' from Junts in Congress, so the formula to circumvent the parliamentary veto is "to open the path of the commercial company," the minister detailed. Until the consortium is constituted —neither socialists nor republicans have said if they will re-submit the law in Congress to create the entity—, the monitoring of investments will be carried out from the Bilateral Infrastructure Commission with the State, "which must be convened, at least, once a year," the agreement states.

Reinforcement of the Tax Agency

Linked to the objective of Personal Income Tax (IRPF) collection, socialists and republicans have also agreed to allocate 500 million euros to strengthen the capabilities of the Catalan Tax Agency (ATC). This will be done through a four-year program contract for "digital transformation, talent acquisition, and organizational change" within the entity, the minister detailed. There will be an allocation of 21 million euros in these 2026 budgets.

New financing and IRPF

The transfer of IRPF collection ceased to be a red line after Salvador Illa withdrew the budget project he presented in February. This condition appears in the pact, but without specifying when this door could be reopened. "We will work together so that the laws finally approved in the Congress of Deputies incorporate the delegation of powers in the collection of IRPF," they limit themselves to writing. They do set a date for the new funding: they want the law to be approved in Congress for the "second half of 2026" with the aim of it being in force in 2027.

Majority in the Free Trade Zone Consortium

Majority in the Free Trade Zone ConsortiumEl Prat Airport

One of the issues that remained pending for development from the investiture agreement is the creation of the Catalan Airport Authority, which PSC and ERC have agreed to include in the law that must support it in the law of accompanying measures for the budgets. Apart from that, they also foresee advancing a "bilateral body" between the State and the Generalitat to "coordinate the governance" of the airport system.

Boost for Catalan

There is a chapter of the agreement dedicated to the promotion of Catalan. Beyond the deployment of the National Plan for Language, Romero has wanted to highlight the pact for a program to strengthen Catalan on social networks. In this regard, the Government undertakes to allocate 50 million euros over 3 years to a program for the development of digital content in Catalan on digital platforms. An additional investment of 35 million is also foreseen in 2026 to strengthen the Department of Linguistic Policy.

Investments in education

Amidst a flood of strikes and protests by teachers, who are demanding improvements in working conditions and more resources for schools, the agreement also includes a chapter dedicated to the education sector. Highlights include an investment plan for educational centers reaching 400 million by 2030, aimed —as Romero has pointed out— at reducing temporary classrooms. Also a climate plan for the air conditioning of schools, funded with 100 million euros for the next 2 academic years, the creation of 250 new reception classrooms, and the reinforcement of Special Education Centers with an extra 3.7 million euros.

The forecast is that, after Tuesday's staging, the Govern will approve the budgets in an executive council this Friday. Beforehand, however, it will be necessary to go through Madrid, where this Wednesday the State-Generalitat Bilateral Commission will meet to validate the points of the agreement with the Republicans that depend on the Spanish government, that is, the orbital line or the investment company.

The Govern, moreover, has pending the review of the budgetary agreement with the other essential partner, the Comuns, who have requested to update the pact with issues relating to housing and mobility. Romero has expressed conviction that the work to "complement" the agreement with Jéssica Albiach's party will come to fruition.