On May 23, 2024, Catalan President Salvador Illa (PSC) withdrew the draft budget for the Generalitat of Catalonia for 2024 to avoid a parliamentary defeat, as his government partner, Esquerra Republicana (ERC), had tabled a motion to reject it in full
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Summary
On May 23, 2024, Catalan President Salvador Illa (PSC) withdrew the draft budget for the Generalitat of Catalonia for 2024 to avoid a parliamentary defeat, as his government partner, Esquerra Republicana (ERC), had tabled a motion to reject it in full. The withdrawal occurred just before a plenary debate scheduled for that Friday. Both parties have agreed to continue negotiations with a deadline of July 31, 2024, to approve a new budget, while Catalonia will temporarily operate under the extended 2023 budget. ERC has shown flexibility on its initial demand for the devolution of the regional income tax (IRPF), indicating a willingness to compromise to reach an agreement.
★ Why It Matters
This development highlights the fragility of the governing coalition in Catalonia and could delay public spending plans, impacting regional governance and services. The outcome of the negotiations will test the stability of the PSC-ERC alliance and influence Catalonia's fiscal and political trajectory.