The government raises civil servants' salaries with a €5.9 billion credit extension

BarcelonaSecond move by Salvador Illa's government within the framework of the new plan to try to have a budget for 2026. After This Thursday he will withdraw the accountsFacing defeat in Parliament and hoping to salvage negotiations with ERC, the Catalan government this morning approved a €5,988.65 million supplementary budget to provide "breathing room" and "guarantee the functioning" of public services, buying "more time" to get talks with the Republicans back on track. This funding will be primarily allocated to increasing civil servants' salaries, including the raises agreed upon with unions for teachers and the Mossos d'Esquadra (Catalan police). This was explained by the Minister of Economy, Alícia Romero, at a press conference in the Palau de la Generalitat (the Catalan government headquarters), after an extraordinary executive council meeting approved the expansion of the current budget, which has been in effect since 2023. "If we didn't have a budget in April, we needed a supplementary budget to meet the obligations of the Generalitat, its commitments, and the normal functioning of the institution," she argued. And he added that, in parallel with the supplement, a second decree-law will be approved next Tuesday with the "most urgent" measures incorporated into the budget's accompanying bill, especially those related to "simplification, urban planning, and housing." Regarding the supplementary credit, Romero emphasized that the "largest package," up to 3.43 billion euros, will be allocated to public sector workers. He argued that, without the supplement, "civil servants' salaries were at risk" and that, with the decree approved this Thursday, it will be possible to cover the salary increases corresponding to the years 2024, 2025, and 2026, as well as the staff increases of recent years. This allocation will also serve to fulfill the salary increase agreements reached with the CCOO and UGT unions for teachers—which It faces rejection from the major unions Ustec and Secondary School Professors - and what was agreed with the Mossos unions.

The budget increase, which will have to be approved by Parliament, will also include funds to cover increased spending by departments—in areas such as pharmaceuticals, long-term care, and rental assistance—and for multi-year government commitments, such as the Neighborhood Plan. Romero stated that the nearly €6 billion extra increases the current budget, but clarified that it is not "all the resources" the executive would like. That is why, after ruling out a second budget increase—"we've gone to the maximum," he said—he called on ERC to honor the agreement and negotiate the budget. "There is nothing more important for the stability of a country than having a budget," he insisted.

Junqueras demands an "alternative" to the Personal Income Tax.

The withdrawal of the bill, which was due to reach the Catalan Parliament this Friday, was a gesture from President Salvador Illa towards the Republicans. But Oriol Junqueras's party has also shifted its position and no longer considers the transfer of the Personal Income Tax (IRPF) a prerequisite for negotiations. "It's a very important condition," Oriol Junqueras stated on Wednesday. "The IRPF is a red, green, and blue line, and defending its revenue is good for Catalonia. The PSC should convince the PSOE, and if not, propose an alternative," he reiterated in an interview with TV3 on Thursday. He did not, however, specify what this alternative might be. "If it can't be done now, then in two days, and if there's an alternative, let's study it, but the PSOE doesn't want to budge," he said. Junqueras, who described Illa's withdrawal of the budget proposal as a "victory for Catalonia," defended the need for the supplementary credit to "compensate for rising prices." The Republican leader explained that the expansion had been agreed upon with Esquerra Republicana (ERC) and, therefore, its approval in Parliament is a given. This will require the support of the Comuns party as well. The Catalan government, however, remains confident that the Republicans will approve the 2026 budget before the summer. "ERC has agreed to intensive negotiations before the end of the parliamentary session, before July. We trust ERC and hope to begin working as soon as possible," the minister stated. Romero emphasized that the objectives of Junqueras's party and those of the Catalan government "are very similar" and promised "flexibility" to "incorporate as much as possible" their "priorities" in "everything that falls under the jurisdiction" of the Generalitat. "We will work on what we have the capacity to influence," he said.