Pedro Sánchez's Budget Crisis with Catalan Separatists
Political eventAbout
Pedro Sánchez's government is facing a budget crisis due to a dispute with Catalan separatist parties. The Esquerra Republicana de Catalunya (ERC) has threatened to block the 2025 national budget unless the government clarifies provisions for a Catalan tax agency. This demand stems from a previous agreement that was key to securing Salvador Illa as the next Catalan president. The ERC's stance is crucial as their parliamentary seats are vital for maintaining Sánchez's coalition majority. The dispute highlights ongoing tensions between Catalonia and the central government over autonomy and fiscal control. The ERC seeks greater fiscal independence, similar to the Basque Country and Navarre, while the central government is cautious about creating fiscal inequities across Spain. The opposition Partido Popular warns that granting Catalonia fiscal independence could lead to significant funding losses for other regions. This crisis threatens the stability of Sánchez's administration and may lead to early elections if unresolved.
