Installment financing for Catalonia
When the Koldo case became the Cerdán case, Gabriel Rufián urged his colleagues in the investiture majority to take advantage of what remained of the legislature. No one knows how much, but everyone is certain that, in the two years since the elections, pacts with the PSOE are milked for show and are unlikely to materialize. Pedro Sánchez buys time by paying in installments, not upfront, as Carles Puigdemont demanded for Junts' seven votes.
Before appearing in Congress on Wednesday, the Junts leadership recommended that Sánchez realign his relations. The conclusion was that the president fell "far short" of expectations and they still have no interlocutor. Amidst the mud, Sánchez did show special deference to Míriam Nogueras: he thanked Junts for their votes, admitted that his support is not "a blank check," that a "political conflict" still exists in Catalonia, and that the amnesty law "is not the end of anything." Such consideration for Junts led Rufián to demand that Sánchez "stop caring for the Catalan right" and look more to the left.
Sánchez, on Wednesday, in Congress
Javier Lizón / EFESánchez is obliged to pamper his partners and urgently needs to stage progress on financing with ERC, the official status of Catalan in the EU with Junts, and pending transfers for the Basque Country with the PNV. Transferring non-contributory pensions to a region with a special tax system depends on bilateral negotiations, but designing a new financing system for Catalonia raises fears even in regions governed by the PSOE.
Finance Minister María Jesús Montero balances her approach as a candidate for the regional government and plays with words. She avoids the term "economic agreement" for Catalonia, downplays its uniqueness, and deploys the rhetoric of "federalizing" the state. Whoever wants more powers will have them, and those who don't will "follow in tow," she maintained yesterday from Seville. But the problem isn't just the PP's demonizing opposition; it's that PSOE regions, like disciplined Asturias, have already warned against alleged privileges for Catalonia. "Plunder," says Emiliano García-Page in Castilla-La Mancha.
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The meeting of the Spanish-Generalitat Bilateral Commission on Monday will belatedly formalize the financing model signed by the PSOE and ERC for Sánchez's investiture. The Republicans demanded that it not only ratify the singular model. Respect for the ordinality and the resizing of the Catalan Tax Agency will be made explicit. ERC admits that the specification of the formula for calculating Catalonia's contribution to solidarity is still a long way off, but they agree to buy time by moving forward with the transfer of personal income tax revenue. ERC's obsession is to stop depending on the advance payment system and have cash resources without waiting for the Treasury.
ERC agrees to move forward with the legal framework, without guarantees that it will be ready by 2026.The how of the bill is the stumbling block. The bilateral commission leaves ERC out of the picture, but it regains the spotlight with a bill signed with the PSOE for the transfer of approximately €24 billion in income tax revenue. "The agreement was between parties," the Republicans emphasize. This is a modification to the law on the financing of regional governments, which requires an absolute majority in Congress, and to the system for the transfer of state taxes to Catalonia. The PSOE signed with Junts a bill to delegate immigration powers to Catalonia, which has been in limbo since March without a parliamentary majority to approve it. This is common. The family bill has 54 extensions for amendments without finding a vote. ERC believes that the reform of the Lofca (Spanish Association of Autonomous Communities) would face no opposition if limited to tax revenue, but it should pass all parliamentary procedures in record time.
There are disagreements to be resolved with Oriol Junqueras' direct involvement in the negotiations. The Treasury has its sights set on the Statute's tax consortium, but ERC doesn't want any oversight of the Catalan Tax Agency . "Collaboration, yes; supervision, no," ERC maintains, aware that neither the resources nor the know-how are yet within its reach. The timeline and the weakness of a government cornered by the judges don't help, and the opposition, including in the PSOE, has already taken action. Junts remains silent, waiting to get its due.
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