Spanish Government Faces Budget Threat from Catalan Party
- Catalan separatists warn of blocking Spanish national budget over tax autonomy.
- ERC party demands clarity on Catalan tax agency provisions in the budget.
- Potential budget instability for the Spanish government looms.
The Spanish government is facing potential instability as the pro-independence ERC party from Catalonia has warned it may block the national budget for 2025 unless Prime Minister Pedro Sánchez clarifies the provisions regarding a Catalan tax agency. This warning follows Finance Minister María Jesús Montero's dismissal of any plans to establish a fully empowered Catalan tax agency, similar to those in the Basque Country and Navarre. This issue is pivotal for the Catalan Socialist Party's Salvador Illa, who is set to become the next Catalan president. Montero's comments have incited backlash from left-wing separatist factions, whose support is essential for the coalition's majority in the Spanish parliament. She stated that the agreement in question is not an economic deal or a standard reform of the financing system, despite acknowledging a special financing system for Catalonia. The ambiguity surrounding the term "singular financing" has raised concerns among ERC leaders, who insist that the government must adhere to the agreements made. As the government prepares to present its draft national budget in two months, uncertainty looms over the implications of a controversial amnesty law affecting former Catalan president Carles Puigdemont and his associates. Meanwhile, the opposition party, Partido Popular, has cautioned that granting fiscal independence to Catalonia could lead to significant funding losses for other autonomous communities, potentially amounting to between €6 billion and €13 billion, which could jeopardize public services across Spain.