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Catalonia Secures €1.3 Billion Credit Deal to Stabilize Government Operations

The Illa administration finalizes a second credit supplement with ERC and Els Comuns, focusing on public sector wages and economic relief as budget talks loom.

Overview

  • The Generalitat has reached an agreement with ERC and Els Comuns to approve a €1.3 billion credit supplement, ensuring operational stability in the absence of a new budget.
  • Over €900 million from the supplement will fund public sector salary increases, including a 2% raise and an additional 0.5% promised by Spain’s central government.
  • Approximately €388 million will be allocated to mitigate the impact of U.S. tariffs and to provide €30 million in relief for Lleida farmers affected by recent hailstorms.
  • ERC has secured a no-layoff clause for companies receiving funds and will collaborate with the government to determine sectoral allocations.
  • Discussions are ongoing for a third €470 million credit supplement, with €500 million still under negotiation to address remaining funding needs for 2025.