Budget Crisis in Catalonia: Salvador Illa Under Pressure from ERC Separatists

The political situation in Catalonia has reached a critical point with the processing of the 2026 budget. Prime Minister Salvador Illa, representing the Socialist Party of Catalonia (PSC), approved the public finance bill but did so without a parliamentary majority guarantee. The main point of contention remains the stance of the Republican Left of Catalonia (ERC), whose leader, Oriol Junqueras, unequivocally declares that the party's goal is to take over all state powers. Pressure on Illa's government is mounting as opposition parties, such as the People's Party (PP) and Vox, have already announced amendments to completely reject the bill, criticizing it for excessive spending, including 400 million euros allocated to public media (TV3). Meanwhile, local politics in Barcelona is also causing controversy. ERC has officially announced Elisenda Alamany as its candidate for mayor in the upcoming 2027 elections. Alamany presented radical proposals, including suspending licenses for tourist shops, as a response to the ongoing gentrification of the Catalan capital. At the same time, the Barcelona City Council rejected proposals to ban burqas and niqabs in public spaces, sparking a debate over the boundaries of religious freedom and public safety. In the social sphere, the approval of a 50% discount on meals in school canteens for primary school pupils proved a success. Catalan independence aspirations intensified after 2010, following a Constitutional Court ruling that limited the region's autonomy, leading to an illegal referendum in 2017 and an ongoing conflict with the central government in Madrid. The economic dimension of the budget dispute focuses on the so-called fiscal deficit. The Generalitat estimates it at 21.092 billion euros, which is the difference between taxes paid by Catalans to the central budget and state spending in the region. Salvador Illa is trying to ease tensions by intervening with Prime Minister Sánchez regarding concessions on the IRPF income tax to gain separatist support. However, the situation is dynamic, and the threat of dissolving parliament remains a real bargaining chip for the Catalan Prime Minister, who emphasizes that the region cannot afford an investment paralysis in areas such as education, where spending is set to increase by 14 percent compared to 2023. „Vamos camino de conseguir todos los recursos y competencias que nos acerquen a una República catalana” (We are on our way to obtaining all the resources and powers that bring us closer to a Catalan Republic.) — Oriol Junqueras