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The Spanish Government and the Generalitat expect to sign the financing model, despite the mistrust of other autonomous regions

The Bilateral Commission of the Spanish Government and the Generalitat, which will be held in Barcelona at 12 noon with a special financing model on the table, is the result of an agreement between the PSC and ERC, which has now been approved by the two executives, but the details are missing.

MANRESA (BARCELONA), 12/07/2025.- El presidente de la Generalitat, Salvador Illa, pronuncia la conferencia "Cataluña lidera. Un modelo económico de prosperidad compartida", este sábado en Manresa. EFE/ Siu Wu

The President of the Generalitat, Salvador Illa, during the conference "Catalunya lidera". Photo: EFE

This afternoon, in the Palau de la Generalitat, there will be a meeting of the Bilateral Commission between the Spanish Government and the Generalitat, which will be chaired by the Minister of Territorial Policy, Ángel Victor Torres, and the Minister of Economy and Finance, Alicia Romero.

The special financing model   is part of the agreement between PSC and ERCto appoint Salvador Illa as president, a document that states that from 2026 the Catalan Tax Agencywill be the one to collect the IRPF. But Oriol Junpoettering has warned that the agreement is not yet closed and that his party will continue to press for Catalonia to manage all taxes generated in its territory.

"The more concrete we get at this bilateral meeting, the easier the commitment to reach new agreements with ERC will be," said Junction. Republicans have threatened to submit to Congress their own bill to amend the LOFCA law and demand full fiscal capacity for Catalonia, and to support the state's general budgets in fulfilling these commitments.

According to the planned model, the Generalitat not only collects, liquidates, manages and inspects all taxes received in Catalonia, but also incorporates the principle of ordinality to limit inter-territorial solidarity and extends the tax regulatory capacity of the Catalan administration.

Meanwhile, the special deal with Catalonia has provoked  reactions . Communities governed by the PP and socialist executives such as Castilla-La Mancha or Asturias have openly rejected what they consider a privilege. Finance Minister María Jesús Montero, absent from the bilateral state, recently replied that any progress in the financing system must be compatible with the principle of multilaterality and respect for the whole state.

Today's meeting will not conclude the final agreement, but it will mark an important political step: the transition from a pact between parties to a framework for institutional negotiation between governments. The determination will depend on the political will and room for manoeuvre that Pedro Sánchez's government is prepared to accept in the face of pressure from ERC and the other communities.

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