Catalonia’s JxCat party threatened this week to vote against the government’s new anti-inflation package in parliament, which, if confirmed, would trigger the first major crisis of confidence between Sánchez and Catalonia-backing officials.
In the first vote of 2024, the Spanish parliament is expected to vote in favour of measures to combat high inflation, which, according to the latest figures from the state-run National Statistics Institute (INE), stood at 3.1 per cent in December 2023.
Moreover, the Sánchez government is confident that its parliamentary majority, thanks to the support of Catalan and Basque MPs, will be able to pass other social measures, including the reform of unemployment benefits and several reforms that Spain has promised to adopt in exchange for receiving EU Next Generation funds.
Sánchez governs in a coalition with the Sumar platform led by Vice President Yolanda Díaz. However, he still needs the decisive support of JxCat and the Republican Left of Catalonia (ERC), as well as the PNV and EH (Euskal Herria) Bildu parties to implement the desired measures.
Key to the stability of Sánchez’s executive are the seven JxCat deputies. One of the concessions the party has managed to secure from the government is a future amnesty law for those involved in 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.
However, the complex co-operation between Sánchez’s PSOE and JxCatt could be put to a serious test ahead of Wednesday’s vote. Last Friday, JxCat announced that it would vote against the government’s decree to implement reforms related to the Recovery, Transformation and Resilience Plan (known as the “omnibus decree”). The party believes that it would jeopardise the approval of the amnesty law and that the text limits some of the powers of the Catalan regional government.
As of Sunday, JxCat had not changed its position as there is “unease” towards the PSOE, Spanish public television reported.
Puigdemont, who has been in exile in Belgium since 2017, called a meeting of the party’s executive committee on Monday to ratify the rejection of the decree. Moreover, JxCat asked the PSOE to amend the text for its votes this weekend.
JxCat signalled it was ready to vote against two other decrees on Wednesday: anti-inflationary measures and the reform of unemployment benefits.
Madrid plans to formally approve the eighth aid package to mitigate the effects of the crisis, worth €5.3bn, which includes measures such as free local and medium distance trains (Media Distancia) during this year or a 30% subsidy on the cost of urban and intercity transport tickets.
In addition, the government supports zero VAT on basic foodstuffs and a 5% VAT on pasta and oils. Among other measures, a solidarity tax on large fortunes and temporary levies for banks and energy companies are also extended for 2024.
