A divisive agreement on regional funding between Pedro Sánchez’s Spanish Socialists and a pro-separatist party could lead to the establishment of the first pro-union administration in Catalonia in 15 years. The deal, which followed talks between the Catalan division of the Socialist Party and the ERC (Catalan Republican Left), gives Catalonia significantly increased tax collection powers, according to the separatist party.
Raquel Sans, spokesman for ERC, stated “The Catalan government will control all aspects of tax collection.” Sánchez spoke positively of the accord, calling it a “splendid agreement” and “a move towards the federalisation of our nation of autonomous areas”.
This denotes that his previous health minister, Salvador Illa, has the backing of ERC in a forthcoming vote, potentially making him the first non-nationalist Catalan leader since 2010. In the May regional election, the Socialists triumphed, although they lacked the necessary seats to rule on their own.
Sánchez’s Spanish left-leaning administration views this agreement as evidence that the repercussions of Catalonia’s unsuccessful independence bid in 2017 have completely dissipated. Spain comprises 17 regions each with different levels of self-rule. Catalonia is one of the regions with more autonomy, including its own police force and an education system where the Catalan language takes precedence. However, nationalists have been advocating for Catalonia to gain full authority over its taxation, similar to the situation in the Basque Country and Navarre. They believe such a change would resolve the perceived underinvestment by the central government in Catalonia.
Despite the specifics of the deal not being made public yet, it’s believed that the newfound taxation powers will be enacted next year. The deal also pledges to resolve the “political dispute” between Catalonia and the rest of Spain through discussions while ensuring the prominence of the Catalan language.
The agreement has been met with criticism from Madrid’s right-wing opposition, who view this as another concession that Sánchez has given to Catalan nationalists to maintain their support in the Spanish parliament and preserve his government.
In a recent social media post, Alberto Núñez Feijóo, head of the conservative Popular Party (PP), condemned the perceived “separatist exploitation” in another instance. He claimed that Sánchez, by granting another investiture vote, expects the general public to bear the burden of increased inequality.
Numerous opposition figures share the view that the agreement is unjust, arguing that it disrupts Spain’s regional financial setup by showing a bias towards Catalonia. Earlier this year, the government was accused of a similar bias when they passed an amnesty law specifically benefiting Catalan nationalists. While the law is now in effect, it has encountered certain hurdles.
Oppositional contempt regarding the recent agreement was anticipated, but Sánchez may be more perturbed by the disapproval received from high-ranking members of his own party, the Socialist Party.
Emiliano García-Page, the Socialist leader for the Castilla-La Mancha region and a staunch critic of Sánchez’s appeasing treatment of nationalists, labelled the agreement as “indecent and disgraceful”. He cautioned that his party won’t endorse it. Several other regional party leaders have expressed similar viewpoints, leading to uncertainty about whether Sánchez can convince his slim parliamentary majority to accept the final deal.
This isn’t the first occasion that Sánchez has granted Catalan nationalists tax-collection powers in return for legislative backing. Under the leadership of former prime minister José María Aznar, the PP also allowed the region some control over income tax, which was later expanded under the previous Socialist administration.
The recent agreement has been endorsed by the El País newspaper.
The alliance with our nationalist movements, by action if not rhetoric, has served democracy and the unity of Spaniards and their territories well, it was claimed. There were also calls to disclose the specifics of the agreement.
Particularly ironic is the fact that such an accord, much like the amnesty law, came into being when parties championing independence were polling poorly. Despite suffering losses in the previous general election, the support of hard-line parties like the Catalan Republican Left (ERC) and Together for Catalonia (JxCat) was pivotal for Spain’s prime minister, Pedro Sánchez, to establish his administration, thereby granting them significant power.
During last May’s regional election, pro-independence factions lost majority representation in the Catalan parliament, leaving the Socialists and Salvador Illa to seize the opportunity.
A vote set to take place this Friday among ERC’s 8,700 members will determine the acceptance of this agreement. If they agree to it – a certainty yet to be established – an investiture vote to create a new administration later this month is expected to be faced by Illa.
However, Carles Puigdemont, the de facto leader of JxCat, could potentially destabilise these fine-tuned plans. The former Catalan president, having avoided the judicial system by living overseas for seven years, has revealed his intentions to return to Spain for the investiture vote. He has criticised the fresh financial agreement as being biased towards unionism. There is potential for his return to cause upheaval, thereby fuelling separatist sentiments and possibly destabilising both the carefully brokered financial agreement and the fragile majority that Sánchez holds in governance.