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Sánchez and Junqueras Seal Financing Deal for Catalonia Worth €4.7 Billion, Enshrining Ordinality

The government will present the detailed plan to the CPFF next week, then seek the absolute majority in Congress that the legal changes require.

Overview

  • Catalonia would receive an extra €4.7 billion annually under a model that applies the ordinality principle and is presented as extendable to other regions.
  • Finance Minister María Jesús Montero is set to outline the figures and design, with a CPFF meeting expected next week before the bill heads to the Cabinet.
  • The reform needs changes to the LOFCA and related laws and must clear an absolute majority in the Congress, with the Senate able to slow but not ultimately stop it.
  • Junts has rejected the pact and the PP and several regional governments denounce it as privileging Catalonia, with some leaders warning of possible court challenges.
  • The agreement leaves out the immediate full transfer of IRPF collection to Catalonia, and reports of a wider €18 billion system injection are attributed to unnamed sources and remain unconfirmed.