Catalonia’s most influential business associations have issued a unified verdict on the proposed new financing agreement between the Spanish central government and Esquerra Republicana (ERC). In a joint statement released this week, the business leaders characterised the Catalan funding model as a “significant improvement” over the status quo. However, they firmly declared it “not sufficient” to meet the region’s long-term infrastructure needs. That debate has been building for months — we covered it in chronic underfunding of the Rodalies commuter rail network.
The consensus document was spearheaded by the Barcelona Chamber of Commerce. It includes signatures from major economic heavyweights such as Foment del Treball, Pimec, the College of Economists, and the Cercle d’Economia. While the tone remains constructive, describing the proposal as a positive “starting point,” the coalition emphasises that the current terms fall short of the region’s aspirations for self-government and financial autonomy. Therefore, the Catalan funding model requires further refinement. That debate has been building for months — we covered it in Spain’s improving national economic indicators.
Your browser does not support the video tag.Home » Catalan funding model: Business leaders say new deal insufficient for infrastructure
Catalan funding model fails to address infrastructure deficit
A central pillar of the business community’s criticism revolves around the critical state of infrastructure in the region. The joint note highlights severe mobility dysfunctions, specifically citing the crisis within the Rodalies commuter rail network. Consequently, the proposed Catalan funding model is seen as insufficient. That debate has been building for months — we covered it in Catalonia’s strong export performance and economic competitiveness.
The document presents stark statistics regarding the execution of state investments. It points out a significant disparity between budgeted funds and actual spending. Between 2015 and 2023, the average execution rate in Catalonia stood at just 55.6%. This figure is notably lower than the national average of 72.6%.
Josep Sánchez Llibre, president of Foment del Treball, has been particularly vocal regarding these shortfalls. Following a recent meeting with former president Carles Puigdemont in Belgium, Sánchez Llibre reiterated that Catalonia has accumulated an infrastructure deficit of approximately €42.5 billion over the last 15 years.
Financial specifics of the new Catalan funding model
On paper, the new agreement promises a tangible boost to the Generalitat’s coffers. By 2027, the model aims to provide an additional €4.687 billion. This sum represents a 13% increase compared to current funding levels.
Despite these figures, the business coalition insists that the proposal requires further refinement. Miquel Nadal, director general of the Cercle d’Economia, acknowledged that the changes represent “important improvements, both quantitative and qualitative.” However, he noted that crucial areas such as ordinality and the cost of living still need addressing.
“The proposal is a starting point to achieve greater levels of justice and transparency in territorial funding… [but] it is far from the self-government quotas to which Catalonia aspires.”Joint statement by Catalan business entities
Political reactions and the path forward for the Catalan funding model
The reaction from the Catalan government has been one of cautious optimism. Economy Minister Alícia Romero welcomed the business community’s validation of the deal as a “substantial improvement.” Meanwhile, she acknowledged that work remains to be done regarding tax management and regulatory capacity.
However, the business sector is urging political unity. They argue that the window of opportunity provided by the current parliamentary process must be seized to deepen reforms. This sentiment puts pressure on opposition parties, particularly Junts per Catalunya (JxCat), to engage constructively.
Antoni Castellà, vice president of JxCat, interpreted the business demands as a call for a full economic concert—similar to the Basque model. He claimed this is the “optimal moment” to demand such fiscal autonomy in Congress.
Foment del Treball continues to push for a more ambitious framework. In this scenario, the Catalan Tax Agency would collect, manage, and inspect all taxes generated within the region. This step is far beyond what the current Catalan funding model proposes.
Join Barcelona English Speakers WhatsApp Community .
