Political Stalemate in Catalonia: Salvador Illa Fights for Budget Under Threat of Elections

The Catalan political scene has entered a phase of deep uncertainty, triggered by a stalemate over the draft budget for 2026. The Premier of the Generalitat, Salvador Illa, has taken a risky step by approving the document without prior agreement with opposition parties. The plan includes, among other things, a historic increase in education funding to 8 billion euros, representing a 14 percent rise compared to 2023. Despite the proposal's pro-social character, the conservative People's Party (PP) and Vox have already announced they will submit motions to reject the entire project. A particular flashpoint is the funding of public media, where the PP accuses the government of allocating 400 million euros to support a "separatist TV3". Since the failed independence referendum in 2017, Catalonia has remained deeply politically divided, making it difficult to build lasting coalitions around economic issues. The key to the stability of Illa's government remains the stance of the Republican Left of Catalonia (ERC). The leader of this party, Oriol Junqueras, is engaged in a complex political game with the premier. On one hand, both sides are making gestures of rapprochement; on the other, Junqueras publicly declares his pursuit of full financial and political sovereignty, which would bring the region closer to the mythical republic. Premier Illa, trying to seize the initiative, does not rule out an extreme scenario—calling snap elections—if parliament blocks the funds necessary for the region's functioning. The situation is further complicated by tensions between Madrid and Barcelona regarding the reform of the IRPF income tax and the fiscal deficit, which Catalan authorities estimate at over 21 billion euros. 21,1 mld € — is Catalonia's estimated fiscal deficit Meanwhile, in Barcelona, a significant reshuffle has occurred within ERC, which has officially anointed Elisenda Alamany as its candidate for mayor in the upcoming 2027 elections. Alamany immediately sharpened her rhetoric against the current mayor, Jaume Collboni, announcing, among other things, a suspension of licenses for tourist shops to protect the local character of neighborhoods. The problems of Catalonia's capital are not limited to personnel politics; the city is grappling with a growing housing crisis. On the last Saturday of February, protests marched through Barcelona against the expiration of the moratorium on evictions. According to estimates by social organizations, up to 70,000 people could be at risk of removal from their homes after the legal protection ends, calling into question the effectiveness of regional social policy. „No contemplo otro escenario que aprobar los presupuestos porque es lo que necesita Cataluña” (I do not contemplate any scenario other than approving the budgets because that is what Catalonia needs) — Salvador Illa