Sánchez and Junqueras agree on new financing model providing 4.7 billion euros to Catalonia

The agreement between the Government and ERC guarantees the principle of ordinality but leaves the full collection of IRPF pending for the Generalitat.

Representació visual d'una negociació política o un acord financer, amb documents sobre una taula.

Representació visual d'una negociació política o un acord financer, amb documents sobre una taula.

The President of the Government, Pedro Sánchez, and ERC leader Oriol Junqueras, agreed on Thursday at Moncloa on a new financing model that will increase the Generalitat's budgetary capacity by 4.7 billion euros.

The meeting between Sánchez and Junqueras, held at Moncloa, concluded with a pact that ensures the principle of ordinality for Catalonia. This amount, representing a 12% increase in the Generalitat's spending capacity, is considered a crucial step towards reforming a system that has been expired for 14 years.

"It is a good model where nobody loses and everybody wins."

Oriol Junqueras · ERC Leader
The First Vice-President and Minister of Finance, María Jesús Montero, is finalizing the overall proposal to be presented this Friday, before taking it to a meeting of the Fiscal and Financial Policy Council (CPFF) with all autonomous communities. Despite the agreement, the republican demand for Catalonia to fully collect its IRPF remains stalled, a point Junqueras admitted is “still pending.”
The approval of the new financing system in the Congress of Deputies is not guaranteed. Parties like Junts have expressed their rejection, warning that they will only accept an economic agreement similar to that of the Basque Country. Junqueras called on other Catalan forces, including the post-convergents, not to vote against it, arguing that “whoever votes against the agreement will be voting against the country's schools having more resources.”
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