Catalan government plans bilateral commission next week to bolster budgets

The government of Salvador Illa and the central government are preparing a bilateral commission next week to address pending transfers that could help approve the Catalan budgets after the March setback.

The two sides are finalizing the meeting agenda, according to government sources. It forms part of ongoing PSC and ERC talks to pass the budgets by July 31.

ERC spokesperson Isaac Albert said his party's support hinges on building an orbital railway line serving Barcelona's outer metropolitan areas, at an estimated cost of 5,000 million euros. He described it as a shift toward a networked territorial model.

PSC spokesperson Lluïsa Moret said joint work is progressing well. Both parties have separated the Mossos infiltration crisis from the budget negotiations.

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Pedro Sánchez and Yolanda Díaz seal anti-crisis deal after tense talks, with decrees for tax cuts and rent extensions amid energy crisis.
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Spanish government approves two anti-crisis decrees after Sumar tension

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Spain's Council of Ministers was delayed over two hours on Friday due to disagreements between PSOE and Sumar on housing measures amid the Iran war energy crisis. Pedro Sánchez negotiated directly with Yolanda Díaz to split the package into two decrees: a main one with tax cuts worth 5 billion euros and another extending rent contracts. Both take effect tomorrow, though the housing decree may fail in Congress.

PSC councilors in Ripoll, Enric Pérez and Anna Belén Avilés, have offered their positions to the party after abstaining in the plenary that allowed Mayor Sílvia Orriols to approve the 2026 budgets. The PSC federation in Girona expressed absolute disagreement and summoned them for explanations. The move avoided a confidence vote like last year's.

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The Catalan government and Comuns have restarted talks to pave the way for a budget agreement, focusing on housing policies. Comuns demands the creation of a General Directorate of Housing Discipline to centralize inspectors for fining rental fraud. Negotiations are informal so far, pending a prior deal with Esquerra Republicana.

Oriol Junqueras, ERC president, has firmly rejected Gabriel Rufián's push for a left-wing electoral coalition, stating he did not go to jail for Catalonia so Ada Colau could run for ERC. At a book launch in Barcelona, he advocated understanding among democratic parties without electoral alliances. Parlament president Josep Rull called for updating Catalan identity to counter the far right.

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Gabriel Rufián of ERC and Irene Montero of Podemos proposed in Barcelona that ERC lead a left-wing coalition in Catalonia and Podemos elsewhere in Spain to avoid "dying separately" against the right. The event, moderated by Xavier Domènech, has sparked tensions within ERC and rejection from Sumar. Rufián urges his party to inspire the unification of Spain's left.

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