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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.

El president Salvador Illa conversa en el Parlament con los consellers Alícia Romero y Miquel Sàmper. Detrás, Josep Maria Jové (ERC) y Albert Batet (Junts).

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.