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Sánchez and ERC Strike Financing Deal Promising Catalonia €4.7 Billion More Each Year

Passage will depend on securing an absolute majority to change the LOFCA after the CPFF rollout.

Overview

  • ERC says the pact applies ordinality and would raise Catalonia’s place in the funding ranking, with a solidarity quota included but key amounts and mechanics still unpublished.
  • Finance Minister María Jesús Montero will unveil the full model and take it to the Council of Fiscal and Financial Policy next week, with the Government signaling that no region will receive less than now.
  • To take effect, the reform must modify the LOFCA and the tax‑cession law, win 176 votes in Congress, and clear the Senate, where the PP holds an absolute majority that could force further hurdles.
  • The PP and several regional leaders condemned the bilateral route as unfair, demanded a multilateral CPFF debate, and flagged possible legal action, with Castilla y León warning it could go to the Constitutional Court.
  • ERC’s push for Catalonia to collect 100% of personal income tax remains on hold, and officials indicate any new system would not be in place before 2027 even if approved.