Catalonia’s regional government remains at odds with Spain’s central government over budgetary negotiations, despite a meeting between Esquerra Republicana de Catalunya (ERC) leader Oriol Junqueras and Prime Minister Pedro Sánchez on February 21st. The impasse threatens to delay approval of the Generalitat’s 2026 budget, according to statements released Saturday.
The meeting in Madrid yielded no breakthrough, with Junqueras reiterating ERC’s demand for greater fiscal autonomy, specifically control over the collection of personal income tax (IRPF). “The PSC must put all its capacity on the table so that the Government complies,” ERC stated, referring to the Catalan Socialist Party, a key partner in the regional coalition. The party also indicated that conditions are not currently in place for a budget agreement.
Despite the stalled negotiations, Catalan President Salvador Illa, of the PSC, has publicly affirmed his commitment to the investiture agreements reached with ERC. In an interview Sunday with El País, Illa stated he would fulfill those agreements “from positions of realism,” signaling a willingness to compromise but not to fully concede to ERC’s demands. He emphasized that Catalonia “needs a budget” and that he does not foresee an alternative scenario.
Illa specifically addressed the IRPF issue, stating that any agreement would not jeopardize fiscal solidarity between Spain’s regions. “None of the agreements that I have signed, nor any of the agreements that I will sign, will put at risk the solidarity of the territories in Spain,” he said. This statement directly responds to ERC’s push for Catalonia to have the same tax-collecting powers as other regions.
A January 8th meeting between Sánchez and Junqueras resulted in an agreement on a new financing model for Catalonia, which Junqueras claimed would provide approximately 4.7 billion euros in additional funding. He described the agreement as one “where nobody loses and everybody wins,” and warned that failure to approve it in Congress would harm businesses, workers, and families. However, this financing agreement is separate from the ongoing dispute over tax collection rights.
The current stalemate extends beyond budgetary concerns. Illa also addressed speculation regarding a potential future bid to succeed Sánchez as leader of the Spanish Socialist Workers’ Party (PSOE). He dismissed the idea, stating his focus remains on a ten-year project to improve public services in Catalonia. He also underscored the importance of stability following a period of political intensity.
Illa also commented on the recent regularization of 500,000 undocumented immigrants in Spain, with an estimated 100,000 residing in Catalonia. He asserted that public services are already equipped to serve this population and that regularization will allow these individuals to contribute more fully to the economy.
ERC’s executive committee is scheduled to meet Saturday to discuss the state of negotiations, followed by a meeting of its national council, where Junqueras will brief party leaders. No further meetings between Sánchez and Junqueras are currently scheduled.
