For better growth, we must invest in batteries to store green energy or attract talent, but the key to the future is fairer financing. There is agreement between the Minister of Economy, Alícia Romero, and three of her predecessors from different political families, who are clear that there are aspects on which there can be broad consensus.

Last Tuesday, President Illa, interviewed on TV3, commented on the regional financing agreement reached between the central government and ERC in the following terms: "Is it a good agreement for Catalonia? No, it's excellent!"

One of the pillars of the agreement between the PSC and Esquerra to invest Salvador Illa was the collection of all taxes by the Catalan Tax Agency (ATC). However, the truth is that the ATC is currently far from being able to do so at its current scale. Furthermore, the Government's objective is to focus on beginning to assume management functions—not collection functions—for a single tax, the personal income tax (IRPF). In fact, considering the ATC's current situation, any "collection" function would extend beyond 2028 and always "in collaboration" with the Spanish Tax Agency. This is clear from the report (See the chartThe report, prepared by Minsait, an Indra subsidiary, at the request of the Government, concerns the development plan for the ATC (Centralized Temporary Storage Facility), which ARA accessed through a transparency request—initially denied by the Generalitat (Catalan Government) and later accepted following an appeal to the GAIP (Galician Authority for Access to Public Information).

The organizations that make up the so-called G8 business group—the Barcelona Chamber of Commerce and the other 12 Catalan chambers of commerce, the College of Economists, the Circle of Economy, PIMEC, FEMCAT, Barcelona Global, RACC, and the Barcelona Trade Fair—together with Foment del Treball, have drafted a joint manifesto on the new financing model presented by the Spanish government. The government of Pedro Sánchez and ERC stated that the model "cannot be considered sufficient." Following the harsh statement issued by Foment del Treball—the employers' association representing large Catalan companies—on the same day the Spanish government detailed its proposal, in which Foment del Treball labeled it "clearly insufficient," the G8 organizations have now aligned themselves with Foment del Treball's criticisms in a joint statement. Cecot has also endorsed the statement, reiterating that they consider it "crucial to seize the parliamentary window of opportunity to consolidate structural advances for the Catalan economy."

Respect for the principle of ordinality (At least as far as Catalonia is concerned) is one of the victories that ERC and the PSC are boasting about in the agreement for new regional financing. The Ministry of Finance accepts it half-heartedly ("The model tends towards ordinality," assured Minister María Jesús Montero) and does not clarify in which other cases it applies, besides Catalonia. Despite Montero's calls for calm, the Socialists of Asturias and Castilla-La Mancha have challenged this principle, which they label as lacking in solidarity, although it is not expected that the deputies from these federations will vote against the text when it reaches Congress. In any case, the PSOE is not the only party performing a balancing act to reconcile its positions in each territory. This is also the case with Sumar and the PP, where there are differing opinions on the ordinality system, although in both cases the position on the model is clear: Yolanda Díaz's party has welcomed it, while Alberto Núñez Feijóo's party rejects it. Within Sumar, the first to speak out was the coordinator of United Left, Antonio Maíllo, also a candidate in the Andalusian elections (and therefore a rival of Montero, the PSOE's lead candidate). "We cannot reward certain regions by giving them greater tax capacity. If there are more wealthy people in a region, this cannot be used as a reason to further fund them," he criticized. Sources within Sumar confirmed to ARA that they share this position: "If this principle applies, the regions would be ranked from richest to poorest. The goal is to ensure that everyone has guaranteed access to public services and that citizens are equal, regardless of where they live," they explained.

He new model of regional financing The system presented this Friday by the Minister of Finance, María Jesús Montero, represents a change from what is currently in force, but it falls short of the systems in place in other territories where Catalan nationalism has often been reflected in proposing reforms to the system that would allow the Generalitat (Catalan government) to obtain more resources and reduce the disparities between what Catalonia contributes to the State and what it receives. The system presented by the minister is far removed from the foral models constitutionally guaranteed in the Basque Country and Navarre, but also from federal systems like those of Canada, Switzerland, and Germany, which grant regions the power to collect taxes and place maximum limits on solidarity between territories to prevent wealthier regions from ending up with fewer resources than poorer ones.

The negotiations on the financing model are far from over. This Friday, the Minister of Finance presented the general financing model for all autonomous communities, including Catalonia, but the negotiations with the Republicans have several key aspects for them, the main one being Catalonia's tax collection capacity, specifically personal income tax (IRPF). In this regard, according to Republican sources consulted by ARA, Oriol Junqueras's party intends for its proposal to transfer powers to the Generalitat (Catalan government), which is currently being processed in Congress, to be voted on at the end of February. They want to do so using their quota as a parliamentary group in the Spanish Parliament, as this ensures that at least a first step is taken. This is the same proposal that the Republicans announced in the summer to put pressure on the PSOE (Spanish Socialist Workers' Party) and which they put on hold this autumn to reach the agreement on the financing model for the autonomous communities that Montero detailed today. For now, as Junqueras acknowledged after the meeting with Spanish President Pedro Sánchez, there is still no agreement on tax revenue, but sources consulted expect to narrow the gap in the coming weeks. However, sources at the Treasury are not optimistic: "It's a major obstacle," they say, asserting that ERC needs to reconsider its position. —Núria Rius Montaner reports.

Negotiations between the Spanish government, the Catalan government (Generalitat), and the Republican Left of Catalonia (ERC) regarding a new financing model for Catalonia have been ongoing for weeks. If an agreement is reached, the Minister of Finance, María Jesús Montero, who is also the Socialist Party (PSOE) candidate for the regional elections in Andalusia, will have to explain it publicly. However, the person behind the scenes, negotiating on a daily basis for the Spanish state, is not Montero herself, but her right-hand man: the Secretary of State for Finance, Jesús Gascón Catalán. He is the one who has the details of all the financing models on the table; he is the one who understands the numbers and the... excellent and sits down face-to-face with the negotiators from the PSC and Esquerra.

The adjusted population has historically been one of the most controversial elements in the negotiations for a new model of regional financing under the common system, which is the one that provides resources to the autonomous communities. And it remains so in the ongoing discussion between the Ministry of Finance, ERC, and the PSC (Spanish Socialist Workers' Party) to finalize a proposed model that satisfies all parties and responds to the agreement between Republicans and Socialists for a unique system for Catalonia, as well as to the agreement of the last Generalitat-State Bilateral Commission.

In the interview that was published the ARA newspaper this Sunday The president of the Generalitat (Catalan government), Salvador Illa, floated an idea that has been taboo until now, namely that the Community of Madrid cannot be treated like the rest because it has privileges tied to its status as the capital of the state. "Madrid has a capital status issue that must be taken into consideration when distributing resources," he stated. This reflection stems from something unquestionable, which is that the criterion agreed upon between the ERC (Regionalist Party) and the PSOE (Spanish Socialist Workers' Party) for distributing these resources in the new financing system, that of ordinality, benefits the Community of Madrid first and foremost, even more than Catalonia. So much so that, in the simulations that have been run, Madrid and Catalonia would share half of the additional resources that should be put into the system, between 8 billion and 10 billion euros according to calculations.

In Spain, policies as basic and close to citizens as education, health, and long-term care (I'll call them social policies) fall under the jurisdiction of the regional governments. The strength and prestige of regional government administration, therefore, depend largely on their effectiveness in providing the corresponding services. However, these are policies that aim to guarantee citizens equal and dignified treatment on a universal basis. They contrast with housing and pension policies, which only aim to guarantee a minimum, above which provision will depend on citizens' income or worker contributions. These are policies, therefore, that consume a lot of resources, and therefore, the strength and prestige of the regional governments depend crucially on their adequate funding. If the former matters to us, we must be committed to achieving the latter.

The Spanish and Catalan governments agreed yesterday that they would "maintain the necessary contacts to agree on a new financing model." Yesterday, a new financing model was not agreed upon. Nor did "the" figure come out: it wasn't even agreed that Catalonia wouldn't lose positions when you compare its position when it pays and its position when it receives. No, yesterday they agreed that there was still no agreement.

In 2015, Junts pel Sí, a coalition led by Convergència i Esquerra (Together for Yes), promised the electorate independence within eighteen months, which implied (supposedly) the ability to collect taxes from Catalonia. However, ten years later, it is clear that in 2025, the Catalan Tax Agency (ATC) will not be able, due to its size and capacity, to collect one of the most important taxes for the public coffers, the personal income tax (IRPF). That the ATC was not ready was known by the government of Carles Puigdemont and Oriol Junqueras when they set the 2017 calendar, and so was Salvador Illa's government when it agreed with Esquerra (then led by Marta Rovira) that starting in 2026, that is, next year, the Hisenda (Spanish tax authority) would be implemented. But they didn't just know this: they must have also been aware that the PSOE wasn't ready to assume any special funding for Catalonia, at least not yet, as demonstrated this Monday in the Generalitat-State Bilateral Commission: because one thing is what is said, another is what is written, and, finally, what is done.

Before the meeting between the State and the Generalitat (Catalan Government), the Minister of Economy, Alícia Romero, convened the Catalan parliamentary groups to explain the content of the pact. This explanation was provided out of courtesy, but it has generated criticism of the agreement from the start of the day. The Vice President of Junts, Toni Castellà, stated in a press conference that the new model "does not resemble the economic agreement" and that the agreement of the Generalitat-State Bilateral Commission is "disappointing." "When the Socialists sit on both sides of the table, Catalonia loses," Castellà stated, adding that for the regional government members, "there is no new financing model." "There is not one euro more for Catalonia [...]. It is far from what is needed," he concluded, stating that it amounts to "extending" the fiscal deficit.

The PP Finance Ministers have put on a lamentable show this Wednesday at the Fiscal and Financial Policy Council: they have stood up from their chairs and have refused to participate in the debate and vote on an initiative, the partial forgiveness of debt, which benefits all the autonomous communities. The reason is not the measure itself, but rather that it is a proposal included in the investiture pact of Pedro Sánchez signed between ERC and PSOE. The message they launched after leaving the room was that they do not want to pick up "the springs of Sánchez's pact with the independentists", thus returning to the old anti-Catalan rhetoric of the PP. On this point it is necessary to make some considerations.

The Spanish Ministry of Finance's proposal for the "adjusted population" which will rule the regional financing model got a frosty reception from the Generalitat. The Catalan Government not only considers that the adjusted population criterion "does not adjust to the reality of Catalonia", but also that the Treasury's approach does not include elements that the Generalitat defends as essential, such as the cost of living. Almost two months later, the Generalitat has let the central government know what it thinks, although it starts from the premise that no model "can fix the underfinancing and the deficit towards Catalonia".