Junts Reaches Out to Illa Again With the Budgets, and Asks to Lower Taxes

Salvador Illa arrived at the Generalitat with a triumphant tone about the prospects of the Catalan economy and an ambitious plan for the "third transformation of Catalonia." But the failure to approve the budgets compromises public investments and hinders the country's economic and financial management. Faced with this situation, Junts has once again offered itself to PSC to negotiate the 2025 accounts.

PSC entrusted the budgets to negotiation with its investiture partners, ERC and Comuns. When the Republicans slammed the door, the Socialists gave up registering the accounts to negotiate with other formations.

This Thursday in Parlament, Junts deputy and vice president Antoni Castella asked PSC and its partners to register the budgets to be able to negotiate. He did so in the context of an interpellation on the prospects of the Catalan economy. Junts has made several proposals to reduce the tax burden in Catalonia.

Junts's motion led to a debate where polarization was evident. PSC, ERC, Comuns, and CUP defended the progressive fiscal policy that prevails in Catalonia and accused Junts of defending the interests of the economic elites. PP, Vox, and Aliança Catalana shared, each with their nuances, the need to lower taxes in Catalonia.

Junts Extends a Hand

Antoni Castellà noted in parliamentary headquarters the "seriousness" of not having budgets. "It is detrimental to the Catalan economy," he warned. Despite the "good indicators" in Catalonia, "budgets are the most important tool of public policies." And in this sense "there is no worse economic policy than not having an economic policy."

Castellà warns that without budgets or joining law, the only thing the Catalan government can do is "keep managing." The deputy asserted that not having budgets will affect the Catalan economy in the medium term, in four or five years. But also that it has a clear detriment to the quality of public services in the short term.

"Register the budgets, make a proposal and let's try to reach agreements," insisted Castellà to PSC. And he again showed his willingness to reach agreements in this area.

Investments and Tax Reduction

Beyond the budgets, Junts has appealed to the need to guarantee the country's strategic investments. The most important, Repsol's investment of more than 800 million euros in the Ecoplanta of Camp de Tarragona to reduce greenhouse gas emissions. Castellà has warned that investments like this "are at risk."

Junts has also proposed "easing the tax burden" on small and medium-sized enterprises and lower incomes. As well as lowering the regional section of the IRPF applicable to lower incomes and recipients of the minimum interprofessional wage.

Incompatibility

The interventions of PSC, ERC, and Comuns highlighted the distance between the Govern and Junts. Socialist deputy Jordi Riba avoided Junts's offer on the budgets and focused on the "good" prospects of the Catalan economy. He pointed out the "strengths" of the economy such as "greater investment and private consumption" and the strength of the technology sector.

He also emphasized the incompatibility of PSC and Junts's projects. He reproached Junts that in their proposals they always include tax reduction "but never include poverty and social justice." Riba accused Castella of "only wanting to sell his narrative."

In the same vein, ERC and Comuns accused Junts of defending the interests of large corporations and major holders. Against the tax reduction proposed by Junts, they defended the need for progressive taxation to avoid dismantling public services.

In short, this Thursday's economic debate in Parlament has shown that PSC remains tied by ERC and Comuns. This leads it to repeat the same fiscal suffocation recipes that have prevailed in Catalonia in recent years. It has also shown Junts's isolation, unable to influence the Govern's economic policy against Esquerra and Comuns.