A well-known economist assured me this week that there would be a Catalan government budget for 2026. He was very convinced. In fact, he had no doubt whatsoever, after applying game theory, a branch of mathematics used to model situations involving negotiation, conflict, competition, cooperation, and other similar interactions. This theory aims to determine the best possible strategy for each player and the expected outcome of each situation. Games can be zero-sum (the gains or losses of some players are offset by the gains or losses of others) or non-zero-sum, meaning everyone can win or lose.

Foment del Treball is considering taking the regulation of speculative housing purchases, agreed upon between the PSC and the Comuns, to the Constitutional Court. This was announced by the president of this employers' association, Josep Sánchez Llibre, during the assembly held this Monday in Barcelona. "The recent agreement between the Catalan Government and the Comuns is the socialization of private property; it is an attack on private property, a measure that has no place in our society. If necessary, we will promote the filing of an appeal of unconstitutionality or the raising of a question of unconstitutionality against this measure, which we consider lethal for the Catalan economy and society." He added that "the rules of the game cannot be changed from an ideological corner, thinking about propaganda or looking good." During his speech, in addition to insisting on reducing the tax burden in Catalonia, he urged President Salvador Illa to seek support from the opposition should ERC not support the budget. Despite stating that the budgets are "highly taxed and very interventionist," he asserted that the country needs a budget, without which €4 billion in investments will be lost. He explained that the Ministry of Public Works will negotiate amendments with parliamentary groups "aimed at reducing the tax burden and improving the supply of affordable housing." Regarding the budget, he did not mention Junts, but he did mention their rejection of the 37.5-hour workweek, highlighting the "courage" of the post-convergent party in voting against it along with the PP and Vox. This has allowed them to "stop the Ministry of Labor's unhealthy obsession" with "imposing" the reduced working hours. He also warned of "new legislative threats," ranging from extended leave policies "to the participation of unions on boards of directors." Legal certainty and investment

He insisted on preserving social dialogue, which he described as "a jewel of our democracy," and argued that the housing crisis will only be solved with increased supply, especially considering the influx of immigrants, which he defends as a way to "sustain the labor market," and the regularization process planned by the Spanish government. Sánchez Llibre championed private property and reiterated his criticism of the PSC and Comuns agreement on speculative purchases because "without legal certainty there is no investment, no housing, no industry, and no innovation." "A major public-private partnership is the only solution that will work," and he asserted that "it is unacceptable" to try to correct "the failure of housing policy" by making homeowners subsidiarily responsible or, worse still, scapegoats for errors that are not theirs." Regarding taxes, he mentioned the increase in the tourist tax and the municipal surcharge, which "will bleed businesses, entrepreneurs, and workers dry," and he insisted that Catalonia has become "a tax hell." One of his objectives is to negotiate budget amendments with the various parliamentary groups "aimed at reducing the tax burden and improving the housing supply," given the stalled industrial investments. "Catalonia needs to bring forward network investments to support both production and consumption," he said. "BK_SLT_LNA~" public and private sector."

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If ERC ultimately endorses the project, Catalonia will have a budget for 2026 for the first time in the last three years. In 2024, 2025, and up to the present day, it has had to extend its budgets due to a lack of support. It's close to 50 billion, a threshold that has been surpassed for the first time in history.This budget represents an increase of €9.1 billion in spending compared to the last budget approved three years ago, which at that time exceeded €40 billion for the first time. This time, the Catalan public accounts will no longer include the European Next Generation funds, which expire this year. Social spending will account for 74.3% of the total budget, the same as in 2023, but with increased resources and the incorporation of housing policies and public transport subsidies. The budget anticipates spending growth that will be slower than revenue growth, which includes record collections of over €6.4 billion in regional and transferred taxes. Unprecedented spending

Non-financial spending by the various departments will increase by 24.8% compared to the 2023 budget, reaching €40.399 billion. For Health, which usually exceeds the forecast – last November it already surpassed €14 billion due to spending from previous years – €13.840 billion is projected, representing a 21.3% increase compared to 2023, below the overall departmental average (24.9%); for Education, €8.356 billion, a 24.5% increase, also below the average; and for Social Rights and Inclusion, €4.248 billion, a 28% increase, above the average.

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The Catalan government needs a budget to function properly. Currently, it is still operating under the extended 2023 budget, which severely limits the administration's room for maneuver and leaves it short of approximately €1.5 billion. This amount remains unused because new expenses or projects cannot be included due to the lack of a budget. This sum is equivalent to the annual allocation of departments such as the Department of Business and Labor or the Department of Universities and Research. The truth is, citizens deserve a government that operates with a budget that reflects the country's current needs, not figures that were based on the reality of three years ago. Furthermore, having a budget would allow the government to make the most of the resources generated by record tax revenues thanks to economic growth. This includes both taxes in which Catalonia participates, such as personal income tax (IRPF), and those collected directly and transferred to the government (inheritance and property transfer taxes) under the current financing system.

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The Catalan government will be able to spend up to €40.524 billion next year, representing a real increase of 3.3% compared to the budget extended from 2023. This amount, which does not include targeted spending or that of the rest of the public sector and which exceeds €40 billion for the first time, is the so-called €2 ceiling, for which Salvador Isla's government has yet to secure support. Precisely due to the lack of agreement, the Catalan government is currently operating with the extended 2023 budget, because Pere Aragonès's administration, from the ERC (Republican Socialist Workers' Party), failed to approve the 2024 budget, which precipitated early elections; nor did Isla's administration. The government estimates that the established limit increases by 7.1% compared to the extended budget, but deviations in expenditures such as healthcare and the need to finance debt mean the increase is actually 3.3%. The figure allows compliance with the spending rule, as explained by the spokesperson and Minister of Territory, Sílvia Paneque. The planned deficit target is equivalent to 0.1% of the gross domestic product (GDP), or €429 million.

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