The political party ERC has decided not to engage in budget negotiations after a secret meeting in Madrid between Prime Minister Pedro Sánchez and Oriol Junqueras, the leader of ERC, focused on the management of the IRPF (personal income tax). This tax has become a critical point for ERC, which has made its participation in supporting the Socialist party in both the Congress and the Catalan Parliament contingent upon an agreement on IRPF management. Despite the meeting, Sánchez did not provide the explicit commitment the republicans were seeking, maintaining his position of increasing Catalonia's self-governance while resisting the full transfer of IRPF management.

The meeting's failure to yield any significant outcome leaves the political situation in a stalemate, with ERC continuing to reject cooperation on government budgets. This rejection not only affects the central government’s fiscal plans but also creates complications for Salvador Illa, the Catalan president, who has been operating without an approved budget since taking office. ERC's firm stance signifies a continuing struggle between the regional government’s demands for greater financial autonomy and the national government's reluctance to fully concede control over such crucial fiscal matters.

ERC's insistence on the IRPF management highlights the broader context of Catalonia's push for increased autonomy and recognition. The personal income tax is a central issue tied to the regional government's ability to finance its activities and projects. The situation reflects ongoing tensions in Spanish politics over regional autonomy, governance, and fiscal power, signaling that resolutions to these issues will require robust negotiations that might not come easily, particularly with ERC now firmly against giving any support until their demands are met.