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Regional Financing Plan Rebuffed as PP Rallies in Zaragoza and ERC Demands Full IRPF Control

Budget approval for 2026 is now in jeopardy.

Overview

  • All autonomous communities present at the fiscal council rejected María Jesús Montero’s financing model except Catalonia, leaving the proposal without a viable path in parliament.
  • The Partido Popular gathered its regional presidents in Zaragoza to reinforce a united declaration against the plan and to project coordinated leadership on the issue.
  • ERC leader Oriol Junqueras says talks on both Catalonia’s and Spain’s 2026 budgets will only begin if the Generalitat is allowed to collect 100% of the personal income tax.
  • Socialist officials argue that transferring the full IRPF to Catalonia now is unfeasible due to the current capacity of the Catalan tax agency.
  • A critical ERC faction, Col·lectiu Primer d'Octubre, has requested an internal membership consultation on whether to keep supporting Salvador Illa’s government.