The Strategic Change of Salvador Illa
The Government, under the leadership of Salvador Illa, has made a momentous decision by choosing not to present a budget for 2024. Instead, it has decided to resume the previous agreement with ERC which, despite not having received the necessary support in Parliament, offers a more expansive approach in terms of public spending.
Preparations for the 2025 Budget
The strategy of Illa’s executive is focused on the preparation of the 2025 budget, which is expected to come into force on January 1. This approach will be formalized at the meeting of the Executive Council scheduled for this Tuesday. The new Minister of Economy and Finance, Alícia Romero, will present a report that will evaluate the possibilities of the new Government in relation to the budget.
The Role of Political Partners
Illa has made it clear that ERC and the Comuns, who facilitated his investiture, will be considered ‘priority partners’ in the budget negotiations, suggesting a desire to build broad consensus.
Factors Driving the Decision
Among the factors that have influenced Illa’s decision is the expansive nature of the previous budgets, which already had the acceptance of the socialists. In addition, the structure of the 2024 budget, which covered 14 ERC government ministries, has been a point of friction, given that two more have now been added to the cabinet.
Calendar Challenges
With the year drawing to a close, the recovery of the 2024 budget would mean facing two negotiations almost simultaneously, adding pressure to the new government.
The Economic Impact and New Regulations
The decision to focus on the 2025 budget means that it will probably not have the same level of expansion as those previously agreed between ERC and PSC. This is because Brussels has announced the reinstatement of fiscal rules that were relaxed during the pandemic, limiting the deficit margin to 0.1%.
The Debate on Financing in Catalonia
The imminent decision on the Catalan budget comes in a context of intense debate on the financing model in the region. Tensions have recently arisen between the Government and ERC, especially after the Minister of Economy and Finance, María Jesús Montero, ruled out that the model agreed with the Republicans was equivalent to an economic agreement similar to that of other autonomous communities.
Reflections on the Future
Illa has argued that the agreement between PSC and ERC establishes a framework to provide Catalonia with the necessary resources to guarantee its public services. In a recent interview, he suggested that this pact is in line with a ‘federal horizon’ that complements coexistence under the Spanish Constitution.
Challenges in the Department of the Interior
Another delicate issue facing the new socialist government is the crisis generated in the Mossos d’Esquadra following the controversial arrival of Carles Puigdemont in Catalonia. The police have admitted errors in the management of this event, which has led the new minister, Núria Parlon, to propose changes in the structure of the Interior Department.
Perspectives for Change in the Police
It is anticipated that Parlon could announce changes in the leadership of the Mossos, including the possible appointment of Josep Lluís Trapero as the new director of the force. However, this change still remains an electoral promise by Illa.
Final Reflections
With the political and economic environment constantly evolving, the Government’s ability to effectively manage budgets and address political tensions will be crucial to Catalonia’s future. Decisions made in the coming weeks could set the stage for a new chapter in the region’s history.