The Republican Left of Catalonia has decided to withdraw from the Congress of Deputies a bill concerning the autonomous collection of income tax. The party's president, Oriol Junqueras, announced a hardening of their position in budget negotiations with the government of Pedro Sánchez. The party is now aiming to gain full control over IRPF revenues through a system of amendments to a broader regional financing law, which poses a direct challenge to the central administration in Madrid.

Withdrawal of the Bill

The ERC party withdrew from the Congress of Deputies a bill granting Catalonia the right to autonomously collect the IRPF income tax.

Pressure on the Central Government

Oriol Junqueras announced that support for Spain's budget depends on the fulfillment of demands for the region's fiscal sovereignty.

Change in Negotiation Tactics

The separatists are focusing on amendments to the general financing law instead of pushing a politically dead, single project.

The decision by the Republican Left of Catalonia to withdraw the income tax (IRPF) bill marks a significant shift in the separatists' strategy. The proposal, registered in September, was intended to grant Catalonia exclusive competence in collecting and managing revenues from this tax. The party's leader, Oriol Junqueras, explained during a Monday press conference that the current balance of power in parliament makes passing a separate law extremely difficult. Instead, the party intends to focus on introducing relevant provisions into the general reform of the autonomous communities' financing system. Catalonia's drive for fiscal sovereignty has its roots in the 2008 economic crisis and the Constitutional Court's rejection of parts of the Statute of Autonomy in 2010, which radically strengthened pro-independence sentiment in the region. Junqueras openly warned the Spanish Prime Minister that without concrete progress on financial autonomy, the government cannot count on the support of Catalan MPs in the vote on the 2026 state budget. The politician emphasized that his party's national ambitions are unlimited, putting pressure on the Socialist Party and the finance minister. This situation also places Salvador Illa, the head of the Catalan regional government, in a difficult position, as his budget plans could be blocked by the separatists' tough demands. Negotiations are entering a decisive phase, and Madrid must weigh cabinet stability against tax concessions for Barcelona. „PSOE must make an effort, because the national ambitions of the Catalan left know no bounds.” — Oriol Junqueras [{"aspect": "Legislative Method", "before": "Separate IRPF Law", "after": "Amendments to Financing Reform"}, {"aspect": "Tax Objective", "before": "Exclusive Tax Collection", "after": "Full Control over 100% of IRPF"}, {"aspect": "Political Priority", "before": "Symbolic Projects", "after": "State Budget Blockade"}]

Mentioned People

  • Oriol Junqueras — President of the Republican Left of Catalonia (ERC), main budget negotiator.
  • Pedro Sanchez — Prime Minister of Spain, leader of the socialists, whose government depends on the votes of Catalan separatists.
  • Salvador Illa — President of the Generalitat de Catalunya, head of the regional government.