Catalan separatists threaten to shake up Sánchez government

The Catalan separatist party JxCat, whose support Prime Minister Pedro Sanchez needs to pass legislation, has threatened to vote down the government’s new anti-inflation package in parliament this week, which, if confirmed, would trigger the first major crisis of confidence between Sánchez and the separatists.

In the first vote of 2024, the Spanish parliament is scheduled to give its green light to three key government decrees containing important relief measures to combat still-high inflation, which, according to the latest data from the state-run National Statistics Institute (INE), stood at 3.1% in December 2023, Euractiv´s partner EFE reported.

In addition to the extraordinary measures to curb inflation, Sánchez’s progressive government is confident that its parliamentary majority, thanks to the support of Catalan and Basque nationalists, will allow it to pass other social measures, including reform of unemployment benefits and several reforms that Madrid pledged to adopt in exchange for receiving EU Next Generation funds.

Sánchez governs in coalition with the left-wing Sumar platform, led by vice-president Yolanda Díaz, although he needs the crucial support of the right-wing JxCat and its left-wing separatist rival, the Republican Left of Catalonia (ERC), as well as the backing of the two main Basque separatist and nationalist parties, the centre-right PNV and the radical left EH Bildu.

However, the key to the stability of Sánchez’s executive is JxCat’s seven MPs in the national parliament, though the support of party leader and former Catalan president Carles Puigdemont is linked to several concessions Sánchez has been forced to make.

A complex ‘marriage of convenience’

One of the concessions that JxCat managed to get the government to give the green light to is the future amnesty law for those involved in separatist actions in Catalonia between 2012 and 2023, as well as other generous concessions on political and economic issues, including the cancellation of Catalonia’s €15 billion debt to the central government.

But the complex political “marriage of convenience” between Sanchez’s PSOE and JxCatt, which counts on the controversial “vigilance” of an international mediator to ensure compliance with the agreements between the two parties, could be put to a major test before Wednesday’s vote.

Last Friday, JxCat announced that it would vote against the government’s decree on the implementation of reforms related to the Recovery, Transformation and Resilience Plan (known as the “omnibus decree”), as it believes it would jeopardise the approval of the amnesty law and that the text cuts several competences of the Catalan regional government, Euractiv´s partner EFE reported.

As of Sunday, JxCat had not changed its position of rejecting the decree because, according to sources in the separatist party, there is “unease” with the PSOE, the Spanish public television RTVE reported.

Puigdemont, who has been in self-exile in Belgium since 2017, has called a meeting of the party’s executive committee for Monday to ratify its rejection of the decree, while this weekend, JxCat asked the PSOE to make changes to the text if it wants its votes in favour.

Millionaire crisis aid in jeopardy

JxCat sources told EFE that the separatist party is also prepared to vote against the other two decrees that will be voted on Wednesday, the anti-inflation measures and the reform of unemployment benefits.

Madrid plans to formally approve the eighth package of aid to mitigate the effects of the crisis, endowed with €5.3 billion, which includes measures such as free local and medium-distance (Media Distancia) trains throughout this year or the subsidy of 30% of the fare of urban and intercity transport tickets.

In addition, the government maintains zero VAT on basic foodstuffs and 5% VAT on pasta and oils. The solidarity tax on large fortunes and temporary levies on banks and energy companies are also extended for 2024, among other measures.

(Fernando Heller | EuroEFE.Euractiv.es)