Pending summarization

The Catalan government under Salvador Illa has taken a decisive step towards implementing its economic agenda by approving the draft budget for 2026. Total expenditure is set to reach a record €49,162 million, representing an increase of nearly 10 percent compared to the previous financial plan. The budget architects have opted for an expansive fiscal policy, directing significant funds to key ministries. Generalitat plans to allocate over €8 billion to education, a 14 percent increase. Furthermore, record investments in housing and an increase in the number of civil servants have been announced to improve the efficiency of local administration. Despite the formal adoption of the draft by the executive council, Prime Minister Illa's political situation remains complicated. Currently, the government only has the support of the left-wing Comuns faction, which does not guarantee a majority in the Catalan parliament. The key player, ERC, continues to withhold its final declaration. Both sides have decided to extend negotiations for another week, resulting in a delay of the first round of voting. Republican negotiators are demanding concessions regarding the reform of the IRPF income tax and the establishment of a state investment consortium, the bill for which has already been submitted in Madrid. Since the restoration of Catalonia's autonomy in 1979, passing the budget has almost always been a test of the stability of local coalitions, often leading to early elections in case of its rejection.The opposition from the right side of the political spectrum, represented by the People's Party and Vox, has already announced the submission of amendments aimed at total rejection, seeking to block the plan at the first reading. Meanwhile, the separatist Junts party criticizes the budget for being too closely aligned with the radical demands of Comuns, calling it a continuation of stagnation policy. At the same time, significant decisions have been made at the local level in Barcelona – the city council approved a 50% discount on school meal costs, while rejecting a commission to combat housing speculation. „Este es el mejor presupuesto posible para Cataluña, un presupuesto que pone fin a la parálisis de los servicios públicos.” — Salvador Illa Simultaneously, the Catalan agricultural sector elected its representatives in sectoral elections, which were again won by the Unió de Pagesos union. This result coincides with increasing pressure from car dealers demanding tax relief from the government for purchasing electric vehicles. The political dynamics of the coming weeks will show whether Illa can convince ERC to support his vision or faces deep legislative paralysis in his first year in office.