The government of Catalonia has found itself in a deadlock after the ERC party officially submitted an amendment to reject the entire budget proposal. President Salvador Illa faces the specter of early elections, which the leader of the Republican Left, Oriol Junqueras, described as the socialists' "political suicide." Meanwhile, in Badalona, Mayor Xavier García Albiol announced an unprecedented crackdown on tourist rentals, pledging to eliminate all such accommodations by 2028.

ERC Blocks Catalonia's Budget

The pro-independence party submitted an amendment to reject the proposal, demanding full control over IRPF collection.

Badalona Bans Tourist Rentals

Mayor Albiol announced the elimination of all tourist accommodations by 2028 to protect residents.

Dispute Over Administrative Spending

The draft budget includes a 37% increase in funding for TV3 and a 10,000 euro raise for the president's salary.

Business Goes to Court

The organization Foment del Treball will challenge restrictions on property purchases by investors before the Constitutional Court.

The political situation in Catalonia has sharply escalated after ERC submitted an amendment rejecting the entire 2026 budget proposal. This formation is demanding that the PSC government fully transfer the collection of the personal income tax (IRPF) to regional management, which is a point of contention with the central government in Madrid. President Salvador Illa warns that a lack of agreement will block key investments, including pay raises for teachers and healthcare reform. Simultaneously, the opposition criticizes the government head's plans to increase his own salary by 10,000 euros per year, which, coupled with increased spending on public media and foreign delegations, is drawing opposition from right-wing parties. Since the restoration of Catalonia's autonomy in 1979, the issue of dividing tax revenues between Barcelona and Madrid has remained the most contentious point in regional-state relations, determining the stability of successive cabinets.Parallelly, at the local level, significant shifts are occurring in the housing sector. Xavier García Albiol, the mayor of Badalona from the People's Party, announced a plan to completely ban tourist apartments in the city by 2028. This decision is all the more surprising as this politician hails from a party typically supportive of the free market; however, rising rental prices and neighborhood conflicts have led him to adopt a strategy previously used by the left-wing authorities of Barcelona. In response to these plans and other regulations limiting property purchases by investors, the business organization Foment del Treball announced it would file a complaint with the Constitutional Court, arguing that they infringe on property rights. 37,3% — increase in spending on public media in Catalonia's draft budgetTensions around real estate are also visible in Alcobendas near Madrid, where a special protocol has been launched to protect owners from the phenomenon of squatters. The new office is to provide immediate legal assistance and coordination with services for the swift eviction of intruders. All these events paint a picture of Spain grappling with a deep housing and fiscal crisis, where the pragmatism of local leaders increasingly prevails over party orthodoxy, and the stability of regional governments hangs by a thread due to disputes over the division of tax revenues. „Si Salvador Illa vol anar a eleccions, que hi vagi, però seria el seu suïcidi.” (If Salvador Illa wants to call elections, let him, but it would be his suicide.) — Oriol Junqueras

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