The new minister also does not yield: Catalonia will not collect personal income tax

Barcelona"The position is very clear," the Finance ministers keep repeating, even though the hottest part of IRPF collection is up in the air. First, it was María Jesús Montero who closed the door on the transfers agreed between ERC and PSC, and now her successor has taken on this role. Arcadi España assures that the Spanish government will not deviate from the agreement signed between Moncloa and the Generalitat in the meeting of the Bilateral Commission last July: "For all the autonomous communities and also for Catalonia, we have the will to increase management capacity, always within the framework of the State Tax Administration Agency (AEAT)." What does this mean? Basically, that the transfer to Catalonia of the collection of 100% of the IRPF is not a commitment that the state executive makes its own, and that, in any case, it will be the AEAT that will have the powers in management and collection. The Catalan Tax Agency (ATC) should settle for collaborating in "a networked tax management model," as specified in the Bilateral document.

Montero personally called JunquerasMontero personally called Junqueras to insist that the ATC would not collect the IRPF, a fact that led to Esquerra's refusal to approve Salvador Illa's budgets. Now, however, ERC and PSC are negotiating again, having eliminated the red line of the IRPF, a seemingly insurmountable obstacle for now.

In the summer of 2024, socialists and republicans agreed that the ATC would collect 100% of the IRPF starting in 2026, and they themselves later adjusted the timeline, seeing that the Catalan administration was not prepared to handle this volume of work. The commitment was moved to January 2028. But everything depends on the will of the Spanish government, which would have to modify the tax law and has already stated that it has no interest. "After the Andalusian elections, we will have more options," say sources from both PSC and ERC, although the Ministry of Finance is not taking it very seriously. Not even now, with a minister of a dialogue-friendly and receptive disposition to federalist proposals.

In search of alternatives

The PSC and ERC have been negotiating the Generalitat's budgets for weeks, after the Republicans renounced the IRPF as a red line. Precisely, this Wednesday from Sabadell, Junqueras has asked the Government that, if it wants the accounts to come to fruition, ERC wants an "explicit commitment" in the Government to build the future orbital train in Catalonia, which should connect Vilanova i la Geltrú with Mataró passing through cities such as Sitges, Vilafranca del Penedès, Martorell or Sabadell.

But beyond the budget negotiation, socialists and republicans are looking for an alternative to the IRPF with which Esquerra can satisfy its voters. The trigger would come if a sufficiently relevant concession of sovereignty is achieved for ERC to, now yes, unblock the accounts for 2026.

in matters as relevant as the management of unemployment benefits or Basque airports.

the mixed company between the Generalitat and Renfe has been created which should manage the service, but there is still a lot of fine print to resolve.

This Wednesday in the Parliament, the Catalan Airports Authority has also been discussed, where the Generalitat should play a relevant role in the governance of Catalan ports and airports. The executive council approved its creation a few months ago. This Wednesday, President Illa responded to the Republicans' question by assuring that this will be possible "in a fairly immediate horizon". This new entity is also part of the pending investiture agreements.

And, in parallel to the negotiations with Catalonia, the PSC and ERC see how Pedro Sánchez is unblocking new agreements with the Basque Country in matters as relevant as the management of unemployment benefits or Basque airports.