Catalan Financing Negotiation Led by the Opposition

Political analysis highlights the paradox that ERC and Junts lead the talks while the PSC maintains complicity with the Central Government.

Representació abstracta de negociacions polítiques o econòmiques, amb documents i mans sobre una taula.

Representació abstracta de negociacions polítiques o econòmiques, amb documents i mans sobre una taula.

The current political situation in Catalonia presents an unusual scenario where opposition parties, ERC and Junts, are leading the demand for improved regional financing before the Central Government.

The situation reverses typical roles, as traditionally the Government of the Generalitat should be the one negotiating financial improvements. However, the current executive, led by the PSC, acts as a partner of the Central Government, leaving the initiative to the pro-independence parties.
This dynamic became evident with the meeting between Pedro Sánchez and Oriol Junqueras at the Moncloa Palace. This encounter was deemed highly political, marking the first time the Spanish President met with a leader of the Procés to formalize agreements, despite the President of the Generalitat being the highest institutional authority.

The new financing system is far removed from the economic agreement demanded by Junts, and even further from the agreement enjoyed by the Basques.

The new financing agreement under negotiation is not the “singular financing” initially announced, but rather a new formula for autonomous communities governed by the common regime. This formula aims to maintain the principle of ordinality, ensuring that Catalonia, if it is the third community to contribute resources, maintains that position in the final distribution.
This new system, which will mean an improvement for the Generalitat, has been described as a new edition of the “coffee for everyone” model. It has the support of ERC but faces opposition from Junts, which continues to demand the economic agreement (concert econòmic) similar to that enjoyed by the Basque Country.
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