Esquerra Republicana de Catalunya (ERC) has cast doubt on the feasibility of reaching a budget agreement for the upcoming year after a meeting with Spanish Prime Minister Pedro Sánchez. The party was expecting a significant gesture from Sánchez, particularly regarding the transfer of income tax management to the Catalan government. However, the meeting did not culminate in a consensus, leading ERC to reassess its willingness to negotiate.

The key point of contention is the call for greater fiscal sovereignty from the Catalan government, which ERC believes is crucial for any future budgetary discussions. The atmosphere of the talks was reportedly tense, and despite previous indications from Sánchez, ERC leader Oriol Junqueras felt that the Prime Minister's conditions did not adequately address their demands. As a result, ERC has decided to withdraw from further negotiations, stating that the lack of an agreed framework renders discussions virtually meaningless.

This development has significant implications for Catalonia’s budgetary planning, as ERC has historically played a pivotal role in negotiations concerning regional finances. The lack of consensus could lead to increased tensions between the Catalan government and the Spanish administration and may hinder progress on other important issues affecting Catalonia’s autonomy and fiscal rights in the future.