The economic resurgence of Catalonia

The Catalan economy grew by 3.2% year-on-year between January and March, seven-tenths of a percentage point less than in the last quarter of 2024, but above the national average (2.8%), according to the first data from Idescat, the statistical institute of the Generalitat (Catalan Government ). These data reflect the community's resilience in the face of international uncertainty.

The situation contrasts with the collapse suffered in 2017, the year in which the Parliament unilaterally approved independence. This was the height of the independence process , which had economic consequences: Madrid overtook Catalonia as the region that contributes the most to GDP , a position it has maintained ever since.

Regaining leadership in the medium term is one of the major objectives of the Generalitat (Catalan government), which has been led by Socialist Salvador Illa since last August. His investiture meant the pro-independence parties moved into opposition, although Junts and ERC are key. The former in Congress, and the latter also in Parliament.

For this reason, Illa must avoid direct confrontation with these parties. Another key player in his pact-making policy is En Comú Podem , the Catalan leader of Sumar, which has wrested tax increases from the PSC on the Property Transfer Tax (ITP) and the tourist tax , which will double starting in the fall.

The employers' associations Foment del Treball and Pimec , as well as the Círculo de Economía , a forum for business leaders, academics, and executives, are three of the economic stakeholders critical of the tax increases. Another request from the Catalan business community has been to demand that the government prevent BBVA from acquiring Banco Sabadell, which this year relocated its headquarters to the region.

It left the company in 2017 due to the independence process, and in recent months the La Caixa Foundation and its holding company, CriteriaCaixa , along with Cementos Molins and the parent company of Applus (industrial certifications), have also returned. These relocations are in addition to the previous relocations of Laboratorios Ordesa and Red Points (in the technology sector).

For the Government and economic stakeholders, the returns have a reputational impact and contribute to building confidence. This is one of Illa's priorities, as he presented an economic plan earlier this year that includes investments of up to 18.5 billion euros over the next five years.

The commitment to expansionary policies coincides with the first steps toward implementing a new financing model for the Generalitat. Illa's government is already working on strengthening its tax agency . Its goal is to take over the personal income tax campaign in 2026, just as ERC wrested from the PSOE in exchange for facilitating Pedro Sánchez 's continued tenure in the Moncloa government in the fall of 2023.

In that vote, the support of Junts was also necessary, and the party led by Carles Puigdemont , together with ERC, secured the amnesty law, which was ratified by Congress exactly a year ago, despite the outright rejection of the PP.

Official credit and housing

Aside from financing and self-government, Illa is striving to focus on other issues. Proof of this is the motto he has chosen for his term: a "govern for everyone."

Thus, it has announced the reinforcement of the Generalitat 's official credit institution—the Catalan Institute of Finance (ICF)—and the construction of 50,000 affordable rental homes by 2030. The Government and local authorities have already identified more than 600 plots of land that could house them.

Illa makes it clear that his assets are well-being and social cohesion, so he sees no room for tax cuts, as the business community is demanding. This commitment to public spending extends to Barcelona City Council , with a broad agenda of urban transformations for the next ten years. June marks two years since Jaume Collboni took office. He replaced Ada Colau, whose eight years in office were marked by her harsh criticism of the private sector.

CATALONIA, IN SIX CHALLENGES

THE NEW MOBILITY.

Barcelona has just inaugurated the first section of the tram that will connect the two ends of Diagonal Avenue.

In Tarragona and its metropolitan area, the Generalitat (Catalan Government) is making progress in launching an intercity tram network.

THE ROAD TO YOUR OWN PROPERTY.

In the image, a user at the Barcelona headquarters of the Catalan Tax Agency (ATC) , which now handles its own and assigned taxes.

Strengthening its resources and powers is one of the commitments the Socialists made to the ERC last summer.

THE REVIVAL OF THE RAILROAD.

Suburban, regional, long-distance, and freight trains run on the Iberian gauge network.

The system is facing investments that are accumulating delays, such as the Mediterranean Corridor from Andalusia to the Spanish-French border or the Cercanías plan.

THE GREAT CHALLENGE: HOUSING .

In 2018, Ada Colau forced developers to cede 30% of the land for public housing , a measure that has paralyzed new construction and rehabilitation in the city of Barcelona.

Relaxing these regulations is a priority for Jaume Collboni, who is in his second year at the helm of the Catalan capital's City Council.

THE TIME OF RENEWABLES.

Salvador Illa's government is fully committed to streamlining bureaucratic procedures and reforming regulations to end the stagnation of the energy transition in a region where nuclear power plants generate nearly 60% of the country's energy.

A DEBATE THAT COMES FROM FAR AWAY: TOURISM.

The first wave of tourismophobia occurred in Barcelona in the summer of 2014. The sector has not recovered to the visitor numbers it saw in 2019, and the city's focus is on increasing the revenue generated by this activity by attracting more spendable travelers.