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Sánchez and ERC Unveil Catalonia Financing Deal Promising €4.7 Billion and Ordinality

Passage hinges on a CPFF review followed by an absolute‑majority vote to amend LOFCA, leaving approval unclear without broader party support.

Overview

  • Finance Minister María Jesús Montero will present the technical design to the Fiscal and Financial Policy Council, where the government seeks multilateral backing before sending an organic-law reform to Parliament.
  • The blueprint foresees Catalonia collecting revenues, transferring a share to the State, contributing a solidarity quota, and receiving extra funds for singular competencies, with the model framed as extendable to other regions.
  • ERC’s push for full IRPF collection is not included in the accord, so the creation of a fully autonomous Catalan tax agency remains unresolved.
  • PP leaders, Vox and several regional governments condemned the bilateral agreement, while PSOE baron Emiliano García-Page warned against privileges and Andalusia’s government attacked Montero’s role.
  • Junts derided the pact and signaled no support, heightening uncertainty as the reform must clear Congress with 176 votes and later the Senate, with the government eyeing 2027 for a potential rollout if it passes.