The new financing model proposed by the Spanish Government led by Pedro Sánchez raises the percentage of tax collection ceded to the regions, increasing from 50% to 55% for IRPF (Income Tax) and to 56.5% for VAT (Value Added Tax). However, Junqueras specified that, for Catalonia, the VAT cession will be 22% higher than in other territories, reaching 78.5%.
This specificity is due to competencies that almost no other autonomous community holds, such as the management of prisons and the Catalan police force, the Mossos d'Esquadra. This unique status allows ERC to defend the agreement, sealed in August 2024 with the PSC, against critical pro-independence sectors such as Junts and the CUP.
“"This new system is very important, because it will allow Catalonia to have 4,686 million euros more than it received from the State until now."
Beyond the VAT issue, Junqueras warned the Government of Pedro Sánchez and the Generalitat led by Salvador Illa that the current agreement is insufficient to negotiate the General State Budgets and the regional budgets. ERC demands that the central Executive commit to allowing Catalonia to fully manage its IRPF in the future.
The Republican leader also urged Junts to support the new financing, warning that if the party “rejects it, they will be leaving 4,700 million in the coffers of the Treasury.” The President of the Generalitat, Salvador Illa, expects to present the budgets by the end of the month, following the unblocking of the IRPF issue in the Congress.
