Catalonia's new financing model takes center stage at 2024 General Policy Debate

The second day of the 2024 General Policy Debate began on Wednesday morning in the Catalan Parliament.

After president Salvador Illa's opening speech on Tuesday, in which he outlined his key policies for the first year of his term, the parties were given the opportunity to respond.

The debate centered on Catalonia's new financing system, which would give the territory full control over its taxes, a long-standing demand of pro-independence parties.

The new tax system was part of a deal between the Socialists and pro-independence Esquerra to support Illa's bid for the presidency, but there are still many questions about how and when it will be applied and whether it will meet the original agreement.

During the debate, Esquerra pressured Illa to make progress in implementing the new model. If there's no progress, they threatened not to negotiate with Illa for the next year's budget, a support Illa needs to approve it.

"Without a budget, the legislature will have a short life, both in Catalonia and in Madrid," said Josep Maria Jové, president of Esquerra in parliament.

Jové based his speech on the defense of the new financing model and the need to apply it. He warned Illa that it was "essential" that the agreement be fulfilled.

In response, Illa told Esquerra that he would "break his back" to obtain the new financing model for Catalonia.

"My compromise is clear. There are still people who think that we have signed a paper and we will forget about it. No, this will happen. There will be a unique financing system for Catalonia," the president said.

However, Illa warned that the challenge is "enormous". One of the main challenges will be the number of workers in the Catalan tax office. Currently it has 800 workers and it is estimated that it will need 4,000 of them.

"If Catalonia is going to collect its taxes, it has to do it at least as well as the Spanish tax office does now, if not better," he said.

Junts urges Illa to 'stand up' against Spanish govt

Pro-independence Junts urged Salvador Illa to "stand up" against the Spanish government.

The party of former president Carles Puigdemont argues that Illa's government is "weak" and that in negotiations with the Spanish government, of his own party, the Socialists, Illa will always be left with "empty hands."

"If Illa is not able to defend a small increase in the spending limit, how will he be able to defend the new financing model or the compliance of the Spanish government's investments in Catalonia?" said Junts president in parliament Albert Batet.

PP says Illa embraces far-left and nationalist policies

The conservative People's Party accused Illa of "embracing the agenda of the extreme left on the economy and that of the nationalist parties on identity."

The party's leader, Alejandro Fernández, said Illa's new measure to build 50,000 social housing units by 2030 "will be a fraud."

"Although we are not the leading opposition in terms of numbers, we aspire to be in terms of quality. It has been a long time since the center-right has not governed in Catalonia, and it is about time," he said.

Far-right Vox accuses Illa of being 'authoritarian'

The far-right Vox accused Illa of being "authoritarian." Ignacio Garriga, the leader of the party, said that the president was "the friendly face of separatism."

Garriga has criticized Illa's creation of the Department of Linguistic Policy and his defense of the amnesty law.

"You are not the solution to achieve a Catalonia for all, you are part of the problem," Garriga told the president.

Left-wing Comuns urge to make housing a priority

Despite Illa's announcement to invest €4.4 billion in social housing over the next four years, the Comuns urged him to take more measures to address the housing crisis. 

The spokesperson for the left-wing party, David Cid, urged Illa to regulate short-term rentals and room rentals. 

Cid said that the housing market is "not regulated" and that it is necessary to put "limits" on those who make a "business of this right."

The Comuns have also opposed the expansion of Barcelona's airport and instead urged Illa to invest in the Rodalies commuter rail network.

Far-left CUP accuses Illa of favoring 'private companies'

The far-left pro-independence CUP accused Illa of preventing "any deep transformation" and applying "the same old recipes."

The party's leader, Laia Estrada, said the Socialists favored "private business at the expense of public services."

"More construction, cement, airplanes and casinos," Estrada said, referring to the expansion of Barcelona's airport and the Hard Rock casino project.

Far-right Aliança Catalana criticizes financing model

During the debate on Wednesday, Sílvia Orriols, the leader of the far-right Aliança Catalana, stated that Catalonia does not need any change on its financing system, but rather that "Spain stops stealing" and criticized the proposal for the financing model.

Orriols has also asked the Socialist Catalan government to require basic skills in the Catalan languae for all the public workers in the Catalan territory, among other proposals. 

The leader of the far-right party also highlighted that "Catalonia and Spain are part of two different puzzles" and that there is "no possible fit."