Sánchez held two secret meetings with Junqueras on regional financing

The government has confirmed that President Pedro Sánchez held two discreet meetings with ERC leader Oriol Junqueras before their public January 8 gathering at La Moncloa. These focused on negotiating the new regional financing system, which will benefit Catalonia with an additional 4,700 million euros. The confirmation follows days of official silence and highlights Sánchez's strategic push to seal deals with ERC.

President Pedro Sánchez met secretly on two occasions with Oriol Junqueras, leader of Esquerra Republicana de Catalunya (ERC), to advance negotiations on the new regional financing model. Moncloa sources have confirmed these meetings prior to the public gathering on Thursday, January 8, at the presidential palace, which served to formalize the agreement. While dates and locations remain unspecified, Junqueras had already alluded to them on Monday, stating: "For the good of Catalonia, we meet, even if it means going to hell".

Initially, the executive avoided confirming the meetings. La Vanguardia revealed them first, and Junqueras backed them, but government spokesperson Elma Saiz stated Tuesday at the post-Council of Ministers press conference that she had no information on the matter. Saiz defended the "enormous dialogue effort" conducted discreetly, stressing that what matters are the achieved agreements communicated transparently. Government sources deny similar meetings with other independence leaders, such as Carles Puigdemont of Junts or Arnaldo Otegi of EH Bildu.

Following the public meeting, Junqueras announced that Catalonia will receive an extra 4,700 million euros and that the ordinality principle will be respected, positioning it as the third community in both contributions and fund receipts. The next day, First Vice President María Jesús Montero presented the overall proposal for all autonomies, injecting 20,000 million additional euros. This deal upholds ordinality for communities like Catalonia, though it is not guaranteed for others, such as the Community of Madrid.

These three encounters in total—two secret and one public—demonstrate a close political relationship between Sánchez and ERC. They represent a strategic bet to stabilize the legislature and enable the PSC of Salvador Illa to pass budgets in Catalonia, within negotiations that included a prior phone call in October 2023 during the investiture.

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Finance Minister María Jesús Montero announces €21B regional financing boost at press conference, map highlights Catalonia amid political reactions.
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Government presents new regional financing model with 21,000 million euros extra

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Hacienda Minister María Jesús Montero has announced a new regional financing model injecting 21,000 million euros annually to the communities, following a pact with ERC. The system ensures ordinality for Catalonia and reduces financing gaps between regions. The PP rejects the proposal, while internal PSOE criticisms emerge.

The Spanish government has accelerated its proposal to reform the autonomous communities' financing model, aiming to present an advanced offer in the coming weeks that includes more resources for public services. This initiative seeks to appease partners like ERC, who are pressing for progress on Catalonia's singular financing, and to position itself favorably in the 2026 regional elections. Andalucía will benefit from financial improvements and significant debt relief.

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Following the government's announcement of a new regional financing model, PP leader Alberto Núñez Feijóo has convened his party's 11 regional presidents to a summit on January 18 in Aragón. The meeting aims to unify opposition, criticizing the model as favoring Catalan independence, amid defenses from Salvador Illa and Oriol Junqueras.

The Popular Party leverages Junts' threat to break with the PSOE to ramp up pressure on Pedro Sánchez's Government, during a week of key decisions in Catalan independence and judicial appearances. Deputy Secretary Elías Bendodo has urged Carles Puigdemont's party to 'stand firm' against what he calls a corrupt Government. Sánchez, meanwhile, ignores the challenge and focuses his attacks on the PP's management in Valencia after the DANA floods.

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The PSOE has agreed to an urgent meeting with Sumar to address the political crisis stemming from corruption and harassment scandals in the socialist party. Sumar, led by Yolanda Díaz, seeks to relaunch the government with social measures and improvements in coalition functioning, without breaking the pact for now. Both partners aim to meet this week to resolve tensions and prepare meetings with other allies.

Hours after Pedro Sánchez's rally in Cáceres supporting PSOE's Miguel Ángel Gallardo—marred by scandals—Minister Félix Bolaños sent a protest letter to Bishop Luis Argüello for political interference, while Sánchez acknowledged errors in handling harassment complaints and faced feminist backlash.

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An external audit ordered by Pedro Sánchez concludes there is no trace of illegal financing in the PSOE's cash accounts from 2017 to 2024. The report, prepared by two experts linked to the government, endorses the party's cash system as coherent and verifiable. However, it highlights striking expenses during José Luis Ábalos's tenure as head of the Organization Secretariat.

 

 

 

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