Sánchez Intervenes to Save Catalan Budget Amid ERC Deadlock

The Spanish Government ramps up negotiations over income tax management to secure ERC's support in Barcelona.

Generic image of microphones on a podium during a political press conference.
IA

Generic image of microphones on a podium during a political press conference.

Prime Minister Pedro Sánchez has taken charge of negotiations with ERC in Barcelona to prevent the Generalitat's budget from being rejected in this Friday's parliamentary vote.

Following the elections in Castilla y León, the central government is now focusing on Catalonia. The main obstacle is the management of Income Tax (IRPF) by the Catalan Tax Agency. Oriol Junqueras' party has warned that without a clear roadmap for this transfer, they will maintain their veto on the accounts led by Salvador Illa.

"Our obligation is to have a budget; it would be a failure if there were elections."

Albert Dalmau · Minister of the Presidency
The Parliament is set to vote on Friday. If ERC does not withdraw its amendment, a broad coalition of opposition parties will likely strike down the budget. This would be a significant blow to Illa's administration, potentially leading to early elections in a highly fragmented political landscape.