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Sánchez's Early Election Call Leaves Illa's Legislature in Limbo in Catalonia

The early election on 29-N halts annual regional funding of €4.7 billion and the cancellation of €17.1 billion from the FLA, key PSC-ERC pact commitments.

Leo Salguero
Leo Salguero
· 3 min read

The call for general elections on 29 November halts key commitments of the PSC-ERC pact, such as the annual regional funding of €4.7 billion or the cancellation of €17.1 billion from the FLA. Illa loses the opportunity to showcase results, and ERC loses arguments to maintain its support.

Pedro Sánchez's decision to bring forward the general elections to 29 November has left many of the commitments that the President of the Generalitat, Salvador Illa, had made with Esquerra Republicana (ERC) to ensure his investiture in August 2024 up in the air. According to larazon.es, many of these agreements depended not only on the Govern but also on the central Government, which is now in a caretaker role with the Cortes dissolved.

The impact is particularly severe on the reform of regional funding, the cornerstone of the pact that allowed Illa to reach the presidency. This reform was supposed to provide Catalonia with an additional €4.7 billion per year, but its processing was interrupted before it could go through the Council of Ministers and Congress. The text had received the endorsement of the Fiscal and Financial Policy Council, although Junts already considered it insufficient and demanded an economic agreement, so its approval was never guaranteed.

Alongside funding, other commitments are also on hold. The cancellation of €17.1 billion of debt from the Autonomous Liquidity Fund (FLA) corresponding to Catalonia had already begun its parliamentary processing, which is now suspended. The same applies to the transfer of Rodalies, which was supposed to start with the R1 line, and the governance change of the Free Zone Consortium.

The creation of a commercial company to oversee state investments in Catalonia, greater participation of the Generalitat in decisions regarding El Prat airport, and infrastructure projects like the orbital railway line are also delayed. Some of these initiatives could continue through administrative or bilateral channels, but they all share a dependence on the political will of the central Government, which is now more uncertain than ever.

The political scenario adds more pressure. If polling predictions hold true and Alberto Núñez Feijóo reaches Moncloa with the support of Vox, the harmony between the two administrations that the PSC has claimed since the beginning of the legislature could disappear. Illa would be left without the main milestones that were supposed to define his mandate, although he maintains approved budgets that provide financial stability until 2028 and a relatively stable relationship with ERC and the commons.

In light of this situation, Illa has rallied behind Sánchez. Following the electoral announcement, the Catalan president publicly reaffirmed his support for the head of the Executive, and the PSC will focus on the socialist campaign to prevent a victory for the right. The strategy makes sense: he needs the PSOE to retain power to try to realise the commitments with ERC. But it also carries risks. If Sánchez loses, Illa could find himself facing a Moncloa with an opposing agenda just as his main promises remain pending. And if the commitments are blocked, ERC will find it harder to justify to its base the support for a Govern that needs concrete advances in funding and self-government.

The early election thus places the Catalan legislature in a state of interim. The commitments that were to be articulated from Madrid are now at the mercy of the new parliamentary majorities that emerge from the ballot box on 29 November, directly affecting the Govern's ability to strengthen public services and advance in self-government.

Leo Salguero

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Leo Salguero

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