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.

The People's Party (PP) is missing a key piece in its solution plan for Catalonia: funding. Although it knows that without Catalonia's support, reaching the Moncloa Palace (the Spanish Prime Minister's residence) becomes much more difficult, it often plays on anti-Catalan sentiment, which benefits it abroad. That regional funding is an uncomfortable issue for the party led by Alberto Núñez Feijóo was made clear this week during the speech by the PP's Deputy Secretary for Economy, Alberto Nadal, at a luncheon organized by Pimec (the Small and Medium-Sized Enterprises Association). Following the presentation by Pimec President Antoni Cañete and his subsequent remarks, when Nadal was asked about Catalonia's fiscal deficit, which, according to 2022 data published by the government, ranges between 8.2% and 5.2% of GDP, he offered no answers. He argued that each autonomous community has its own interests and, therefore, should establish expert committees to determine their needs and then share them. Together, he said, they would be able to reform the model, conveniently ignoring the fact that the reforms implemented so far have always originated in Catalonia. Little else. He didn't quite convince the audience of an organization that had signed a document with seven other business and economic organizations demanding improvements to the Spanish government's funding proposal, the so-called G-8. The attendees applauded when Nadal pledged to lower taxes, deregulate, and repeal certain environmental and labor laws if he were to come to power in Spain. But on the issue of funding, the proposed solutions fell short.

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!"

What has happened to us in recent weeks, from the announcement of a new regional financing model to the commuter rail collapse that will last, at the very least, throughout this year? The short answer is: we have suffered from a large fiscal deficit and poor regional funding. We are paying more attention.

There are so many pronouncements on the matter that it's likely the average citizen won't understand either the essential or the secondary aspects. Two essential matters.

In the last two weeks, a number of opinions have been published regarding the regional financing proposal agreed upon by ERC and PSOE. Many of these opinions have referred to the principle of ordinality, and I believe a clarification is in order.

At the meeting of males The PP's usual reaction this Sunday is to light one or more candles to some saint they're devoted to, hoping that Junts will derail the financing agreement between the PSOE and ERC. Because if, for some reason, it were to be approved and implemented next year, it would also set off a ticking time bomb for Alberto Núñez Feijóo. Let's see why.

In the sterile environment of the laboratory, the assertion that a funding system designed for 15 beneficiaries cannot be negotiated with just one makes some sense. In real life, life is like that, and we didn't invent it, as Sandro Giacobbe would have said.

The Andalusian Finance Minister, Carolina España, summarized the new financing model presented by the Minister of Finance, María Jesús Montero, with gastronomic words as eloquent as her surname: "Montero wants champagne and caviar for the independence movement," she said, "while the rest of the menu, which is worse, is a menu pre-cooked by the independence movement." If this were the case, and continuing with the analogy, the Basques have a gastronomic society and the people of Madrid an all-you-can-eat buffet, one of those where, if you don't eat everything you order, they threaten to make you pay, so you'll moderate yourself.

María Jesús Montero has issued a challenge to the autonomous communities under the common regime, and therefore to the PP, which governs in almost all of them: if they do not wish to adopt the new regional financing model—should it be approved—they can remain with the current system. This is not a new idea, as voluntary participation is already provided for in the law. In fact, in 1996, when the PP and CiU agreed on the financing model in place at the time, some socialist-governed communities did not join. However, de factoThis would mean forgoing the additional funds they would receive under the model agreed upon by the three parties: ERC, the Catalan government, and the Spanish government. In Catalonia's case, this amounts to an additional 4.7 billion euros. "Absolutely nothing will be imposed here," Montero stated at a press conference following the Fiscal and Financial Policy Council (CPFF), adding that participation in the regional debt forgiveness, which is yet to be voted on in Congress, is also voluntary.

Xavier Trias, president of the Junts council of mayors, he said to Coffee of ideas from La 2 Cat that giving up 4.7 billion euros for Catalonia is "almost impossible." Another former regional minister, Jaume Giró, also believes this funding must be negotiated. But they are the only two in the party who have said so publicly. Their profiles are similar. I have acquaintances in all parties, woke And fascists, who say they would vote for "these two."

There is a period of mourning following the ambition for independence, first scaled back to the ambition of a special economic agreement in the Basque Country, then to that of a unique financing model, and finally to a reform of the financing model with some unique features. Add to this the explosion of anti-Catalan sentiment throughout Spain against the perceived outcome of a Catalan demand, assuming it would harm them simply because it is Catalan, and suggesting that if the new model were to go ahead, a new PP-Vox government would immediately suspend it—as the "healthy" one has already stated—and continue with the current model. We overcome this mourning and try to coldly analyze the available data, acknowledging that it is still very limited.

To evaluate the new regional financing proposal, we must be guided by past experiences and future expectations. Looking back, I note, positively, that financing negotiations are not an all-or-nothing situation that repeats itself endlessly, but rather a continuous process in which, despite obstacles, progress has been made in the right direction, at a pace that—in generational terms—allows us to glimpse an outcome that, while not perfect, will be satisfactory. Virtually all Catalan political forces can claim credit for having contributed to this effort. Looking ahead, I fear it could be very problematic, and that now, indeed, a drastic setback is possible.

Former regional minister Jaume Giró started the week in the Mornings 3Cat offered a comment on the financing agreement between the PSOE and ERC that any social democrat or lifelong liberal could endorse: "Is it a perfect agreement? No. Is it a good agreement? Yes, and we should take advantage of it." This message (directed at Junts, the party to which Giró now claims to be merely a rank-and-file member) was accompanied by a reflection on desire and reality, on what one wants and what one can achieve: in short, on what is often called "fishing on the horns," which, as Giró reminded everyone, was characteristic of Pujolism. Of Pujolism, and, in general, of the practice of governance in a democracy, a transactional art.

Visibly pleased with the regional financing proposal presented by Spanish Vice President María Jesús Montero, but aware that it's impossible to obtain 100% of what they want, the Catalan Minister of Economy, Alícia Romero (Caldes d'Estrac, 1976), received ARA at the Palau de la Generalitat, convinced that Catalonia will succeed. She also stated that she doesn't see it as impossible for the proposal to go ahead.

In politics, you never win by a landslide, just as you don't reach a prominent position by taking shortcuts. It requires hard work and perseverance, maintaining clear ideas, ambition, and rigor. The financing agreement announced yesterday is a new milestone on this path: an important step toward correcting the chronic underfunding that Catalonia has suffered for decades.

One of the advantages of the financing model agreed upon between the Spanish government and ERC (Republican Left of Catalonia) is related to management. Specifically, it eliminates advance payments for those autonomous communities that choose to do so. This means they would receive their revenue in real time instead of through advances, with a final settlement made after two years. Currently, the autonomous communities receive 98% of their funds through advances estimated by the central government, and the remainder after two years. In the final settlement, the autonomous communities may either receive more funds or have to return them, depending on whether the estimates were too optimistic or too pessimistic. For 2025, the settlement was based on the 2023 revenue figures.

Every negotiation regarding Catalonia's financing stems from the same deficiency: a structural problem is being discussed, the premises of which are circumstantial, depending on the political moment. The structural problem is, and always has been, the fiscal deficit carried and accumulated by the regions that contribute the most to the Spanish Treasury, such as Catalonia and the Balearic Islands (Madrid, as always, is an exception, and as always, manipulates its figures: the reality is that it contributes, but also receives much more than the others). The premises of the current moment are, above all, the need for Pedro Sánchez, the PSOE, and the Spanish government to reaffirm the majority that brought them to power, with the aim of getting through this new year and reaching the Generalitat, if not in July 2027, then as far ahead as possible. Then there are also the needs of the others: Salvador Illa's need to approve the Generalitat's budget; After two years of extending them, ERC's aim is to show itself as a demanding partner capable of securing good funding for Catalonia, even if it means applying the principle of ordinality without mentioning it in the text of the agreement; Junts' aim is to play the role of patriotic and inflexible negotiators who are not satisfied with anything (unless it suits Junts, of course).

Catalonia continues to receive a third of all the funds the central government has allocated to the autonomous communities since 2012 through extraordinary mechanisms such as the Regional Liquidity Fund (FLA). According to data from the Ministry of Finance, from that year until the allocation for the first quarter of 2026, the total amount for Catalonia, through various extraordinary instruments, has reached €160,722.3 million. This represents 32.8% of the more than €488 billion allocated to the territories under the common regime, which are used to cover the deficit and pay outstanding bills and debts. However, the ranking changes when the estimate is calculated in euros per capita. In this case, the Valencian Community leads the way, with €22,461 per person, given the increase in resources received by this autonomous community to mitigate the effects of the October 2024 storm, compared to €19,676.4 in Catalonia. Two issues currently on the table, agreed upon between the Spanish government and the ERC (Republican Left of Catalonia), directly affect regional finances, despite the polarization and difficulties in securing parliamentary support. One is the forgiveness of approximately €17 billion of Catalonia's FLA (Regional Liquidity Fund) debt, out of a total of more than €83 billion for all the autonomous communities, representing around 24% of the current regional debt. This was approved by the Council of Ministers and is pending ratification by the Congress of Deputies. The other essential element is the new financing model, which faces the challenge of providing specific provisions for Catalonia, but also for the other regions. The upcoming meeting scheduled for this Thursday between the Spanish Prime Minister, Pedro Sánchez, and the leader of Esquerra Republicana, Oriol Junqueras, must implement it and address issues such as maintaining the principle of ordinality; that is, ensuring that once resources are contributed to the common fund, Catalonia does not fall too far behind other territories. According to the settlements of the current financing model, which expired in 2014, Catalonia is the third largest contributor to the system, behind Madrid and the Balearic Islands, but it falls to tenth place when the distribution is based on state spending and investment, and drops even further when the price differential is taken into account.

After more than a year of negotiations between ERC and the PSOE (with the PSC caught in the middle), the moment of truth is approaching regarding Catalonia's special funding arrangements. This January, the Minister of Finance, María Jesús Montero, is scheduled to publish her proposed distribution of funds, an exercise that hasn't been undertaken in Spain since the last funding system was approved in 2009. The issue of personal income tax revenue will be addressed later, given that the current Catalan tax system is already underfunded. However, Montero must present figures, and the one of greatest interest in Catalonia is how much additional money the Generalitat (Catalan government) will receive to finance its responsibilities. But it will also be necessary to see how the other regions fare, especially the Community of Madrid, which benefits from the capital city effect and engages in highly unfair tax dumping compared to the rest of the country, as well as Andalusia, the most populous autonomous community.