ERC launches a timetable for Illa to transfer commuter rail services, reform the ICF (Spanish Confederation of Civilians and People's Funds) and financing.

The president of the Generalitat and leader of the PSC (Spanish Socialist Workers' Party), Salvador Illa , has managed to push through three credit supplements with which he seeks to soften the effects of the second budget extension currently in effect for the Catalan government.

Today, the Government approved the third credit supplement in an extraordinary meeting, and the Executive has already secured the necessary support in Parliament . Once again, the two parties that supported Illa's investiture will vote in favor of this initiative.

In return, ERC has managed to finalize several of the agreements it reached in its pacts with the Socialists: its support for Pedro Sánchez's investiture, which took place in the fall of 2024, and its favorable vote for Illa's appointment to the Generalitat last August.

Illa won the Catalan elections by a landslide, although he is far from an absolute majority. He has 42 seats out of a total of 135. Comú Podem won six seats, and ERC, 20. Together, they have exactly 68 seats, one more than the other parties represented in Parliament: Junts, PP, Vox, CUP, and AC.

In a legislative session where the majority distribution is very tight, ERC and En Comú Podem are in the opposition and need to demonstrate their influence to their supporters, at a time when the internal debate between the two parties is still very much alive.

All these circumstances help us gauge why the agreement reached today is so significant: Illa manages to secure an alternative to the budget for the entire year, and the leaders of the ERC and the Comuns party will defend themselves against critics. The agreement between the Catalan government and the PSC covers several areas:

1) Strengthening the Catalan Treasury

In 2023, ERC persuaded the PSOE to reform regional financing, and later, in exchange for facilitating Illa's investiture, it was agreed that Catalonia would have its own model based on "bilateralism" and would eventually assume the management, collection, and inspection of all taxes.

Currently, the Catalan government's tax arm, the Catalan Tax Agency (ATC ), only handles its own and assigned taxes. It lacks the resources to take on additional functions, and to correct this situation, the Catalan government is committed to creating 200 new "consolidated positions" by June 30, the Republicans emphasize.

Before July 31, the "master plan for personal income tax collection " must be presented, which, according to the ERC, should be implemented in the next campaign. The agreement with the Catalan government also provides for "a new physical headquarters for the ATC."

2) Suburban and Regional

A new commercial company must be established before June 30 to assume the functions currently performed by the state operator Renfe in Cercanías and Regionales .

ERC makes it clear that the Generalitat will have a "majority stake" and, unlike what the Ministry of Transport agreed with the unions, the new company will be "separate from Renfe Viajeros ."

"A new physical headquarters for the company will be selected in 2025," which is currently located in the upper part of the Sants station concourse, the Republicans emphasize.

3) Banking form for the ICF

The Catalan Institute of Finance (ICF) is the official credit institution of the Generalitat (Catalan Government). During the presidency of Artur Mas (2010-2016), it launched a project to expand its presence and become a public bank. However, to achieve this goal, it first needs the Bank of Spain to grant it a banking license, as well as the support of EU institutions such as the European Central Bank (ECB).

While Illa advocated giving the ICF more prominence at the beginning of the year, but within its "current structure," the ERC has prioritized its banking integration. A few days ago, it persuaded the PSOE that the government would support the efforts at the EU level, and now the government has committed to requesting a bank license from the Bank of Spain before July 31.

The last time this was done was in 2022, when it was rejected, and next week, the first contacts between the Government and the financial supervisor will take place.

4) "Political conflict"

Next week will mark one year since Congress passed the Amnesty Law , and ERC is calling on the government to "acknowledge that there is a political conflict that must be resolved."

5) Investment Observatory

An observatory of state investment in Catalonia will be launched, the "poor" implementation of which is a "national problem." "Social stakeholders" will participate, it will be led by the chambers of commerce , and political parties will be asked to participate, with the aim of "monitoring and pressuring" the PSOE and Sumar governments.

6) Language, education and housing

Illa will also increase the allocation for the recently signed National Pact for the Language by 15 million euros to promote the social use of Catalan , 200 million euros over three years for rehabilitation , and the expansion of financial resources for public daycare centers.