Government and ERC reach €469m deal including housing renovation and new preschool places

The Catalan government and pro-independence Esquerra Reupblicana (ERC) have reached an agreement on a third credit supplement to the budget, with a total investment of €469 million.

According to El Periódico and confirmed by the Catalan News Agency (ACN), the deal includes around €200 million for housing rehabilitation. 

It also includes the creation of new educational places for children aged 0 to 3 years, with the goal of making the service universally available.

The two parties will sign and present the agreement on Thursday, before the decree is then approved in an extraordinary cabinet meeting.

The government is continuing talks with the left-wing Comuns party, in order to secure enough support in Parliament to ratify this latest credit supplement.

The deal comes less than 24 hours after Parliament validated the government's second credit supplement, which adds €1.3 billion to the spending plan.

The executive has not passed a new budget since 2023, under the previous administration. In the absence of a new budget, the existing budget rolls over to the next year.

€200 million for housing

Regarding housing, the agreement between the Socialist government and ERC includes €200 million for the period 2026-2028 to promote the renovation of both apartment buildings and standalone houses. It also aims to grow the number of affordable rental units.

At 2:15pm, the cabinet will hold an extraordinary meeting to approve the decree, which must be ratified by Parliament within 30 days.

200 new jobs at Catalan Tax Agency 

ERC and the government have also agreed to create 200 new positions at the Catalan Tax Agency (ATC) before June 30, with the aim of "strengthening the agency and preparing it to take on future responsibilities."

This comes as Catalonia prepares for a new proposed singular financing system – an overhaul of how tax is collected and managed in the territory.

According to ERC spokesperson Isaac Albert, who spoke at a press conference on Thursday morning, the purpose of the agreement is not simply to "provide stability for the government for its own sake," but rather to take decisions "thinking of citizens and the country."

Albert admitted that 800 people are needed to transform the ATC, but that obtaining 200 was the most "realistic and possible" deal.

​​​​​​The executive and ERC have agreed to have a master plan for the gradual implementation of personal income tax (IRPF) at the ATC before July 31.

During 2025, new headquarters for the ATC will be chosen, that have the "capacity to accommodate the future expansion of the Catalan tax administration."

Albert also explained that they have agreed to allocate an additional €40 million to improve and modernize sports facilities.

Apart from the new measures announced on Thursday, Albert pointed out that the third supplement to the budget includes agreements presented in recent weeks, such as the €200 million National Language Pact.

The ERC spokesperson added that a further €55 million will be allocated to the Catalan language pact as part of the latest deal.

Comuns 

Comuns' priorities in talks with the government include the reduction of inequality in schools through free school meals, and improving academic results in public schools.

The left-wing party wants more resources for Catalan, English, and mathematics in particular.

Spokesperson David Cid told ACN his party have a meeting scheduled with the economy minister, Alícia Romero, on Thursday afternoon, and another one next week.

Cid also endorsed the agreement reached between the government and ERC: "We will not throw a spanner in the works."

The Comuns spokesperson hopes to conclude the pact before Parliament validates the new decree – i.e. within 30 days.