Catalonia moves closer to passing 2026 budget after ERC deal

Catalonia has moved closer to passing a 2026 budget after a deal was reached between the governing Socialists and pro-independence Esquerra Republicana (ERC).

President Salvador Illa and ERC leader Oriol Junqueras formally signed the agreement on Tuesday morning, bringing to a close months of negotiations and a previously failed attempt to pass the spending plan.

With the year already approaching its midpoint, the agreement between the Catalan government and ERC paves the way for Catalonia to finally approve a new budget for 2026, provided left-wing Comuns maintain their support.

Key measures included in the deal are the orbital railway line project, an investment of more than €527 million in the Catalan Tax Agency, a Catalan majority within the Zona Franca Consortium, and a €400 million neighbourhood development plan aimed at smaller municipalities.

The formal signing ceremony took place at 8am at the Palau de la Generalitat in Barcelona after a brief meeting between Illa and Junqueras. 

The agreement was announced on Monday evening after ERC's National Council was briefed on the terms and endorsed the pact.

If negotiations with Comuns are concluded this week – as appears likely – the government will be able to approve the new budget and submit it to Parliament for ratification with the backing of the Socialists, ERC and Comuns, the three parties that supported Illa's investiture.