President announces €18.5bn investment by Catalan government over 5 years

President Salvador Illa has announced that the Catalan government will invest a total of €18.5 billion over the next five years, from 2025 to 2030, calling it "the most ambitious deployment of public resources by the government since 2010." 

The plan includes €13.7 billion in direct investment from the government and €4.8 billion in loans, for infrastructure, modernization of production, knowledge and innovation, good governance, and equal opportunities. 

At a conference titled 'Catalonia Leads: A Shared Prosperity Economic Model,' the Illa outlined the goal of "leading the Spanish economy and becoming a leading region in Europe" within 10 years, or in 5, if possible. 

"Shared prosperity" 

The plan presented on Friday in Barcelona contains 200 specific actions structured in five blocks, with the roadmap set to be approved by the government at next Tuesday's cabinet meeting. 

"We want to unleash the full potential of Catalan society, break the bottlenecks, untie the knots, to be the most prosperous region in Spain and one of the most prosperous in Europe," Illa said.  

"With humility, but with determination; with respect for others, but with confidence in ourselves." 

The president said that he will work towards a "model of shared prosperity." 

Housing 

In his speech, Illa focused on access to housing. 

"I see how it has become, in Catalonia but not only here, one of the driving factors of inequality, as prices have risen well above the people's disposable income levels," he said. 

"We have a very poignant reminder of this today, very close to here," he added, referring to the planned eviction at Casa Orsola. 

Illa also mentioned the sanctions regime approved this week, with fines of up to €900,000 for property owners who violate the rent cap: "We will comply with it and we will strictly enforce it,” he said. 

The president described his plan to build 50,000 units of public housing by 2030 as "the most ambitious housing policy in Spain." 

"We have to join forces; we will not leave anyone behind," he said. 

Five blocks 

With regards to infrastructure, the president highlighted the need to improve water systems, given the drought of the last few years. 

Wind farms and solar farms will be expanded in line with the aim for 50% of electricity generation to come from renewables by 2030, as set out in the EU's objectives.  

Talking about the need to modernize production, Illa set out plans for a "modern industrial policy oriented towards priority sectors" namely the agri-food sector, the automotive sector, transport, the chemical industry, health and biomedicine. 

On knowledge and innovation, the president said that universities must be the "engine of growth and prosperity," while regarding equal opportunities, he pointed out that public policies must be "supported by social investment." 

The last block in the €18.5 billion plan is good governance, with the objective of "simplifying" public administration and "transforming the public sector with data and artificial intelligence." 

"Without efficient institutions there is no economic development," Illa said, quoting Daron Acemoğlu, one of the winners of the 2024 Nobel Prize in Economics.