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Catalan business calls for urgent budget compromise as economic risks increase

Catalonia’s budget hangs in the balance — influential business leaders demand urgent action, stakes rise as the region faces economic crossroads, and uncertainty looms for future investments

Pressure is mounting on politicians in Catalonia over the budget. Businesses warn of growing economic risks. The outcome could impact investments and jobs.

The question of adopting Catalonia’s 2026 budget has become pivotal for the region’s economy. The lack of consensus among parties is already affecting investors’ plans and business operations. The business community fears that prolonged negotiations will slow down development and result in the loss of new projects.

Pressure on politicians

The Cecot business association has called on deputies to speed up the budget approval process. According to business representatives, it is crucial to avoid a repeat of last year’s delays, which have already had a negative impact on economic activity. Cecot’s president, Xavier Panés, emphasized that without political compromise, the region could face yet another crisis and key initiatives may be left unfunded.

As reported by El Pais, proposals to support industry and develop new sectors were discussed at an event at the Leitat Center for Technological Innovation. Cecot believes these measures should receive additional protection in the budget to ensure long-term stability and growth. However, business representatives note that increasing the tax burden could reduce the region’s competitiveness compared to other areas.

Risks for investment

The issue of taxes and conditions for investors has become a point of contention between entrepreneurs and authorities. Cecot insists on the need to provide equal conditions with other autonomous regions to prevent the outflow of capital and professionals. The organization also emphasizes the importance of combating the shadow economy and supporting legal businesses.

Alongside Cecot, Foment del Treball has put forward similar demands. The head of this organization, Josep Sánchez Llibre, stated that business is not interested in economic instability and is ready to support any steps leading to the adoption of the budget. He also suggested seeking compromises even with opposition parties in order to prevent key decisions from being blocked.

Looking for new allies

Amid political deadlock, the possibility of negotiations with opposition representatives is being discussed, including parties that have not previously taken part in budget agreements. This approach has already been discussed in business circles before—for example, business associations in Catalonia have previously called for finding new allies for the budget, in order not to lose billions in investments and to preserve jobs.

According to El Pais, Cecot representatives view some of the proposed measures positively but consider them insufficient for a long-term effect. Business calls for increased support for innovation and industry, as well as guarantees that these areas will not face cuts during budget revisions. At the same time, concerns remain about tax increases and possible worsening conditions for entrepreneurs.

Context and Consequences

In recent years, Catalonia has already faced difficulties in passing its budget. Such situations have led to delays in infrastructure projects and cuts in social program funding. In 2024 and 2025, disputes between parties dragged on for months, causing dissatisfaction among both businesses and the public. Experts note that the lack of a stable budget negatively affects the investment climate and may prompt companies to relocate to other regions of Spain.

Other autonomous communities in the country have also experienced situations where political disagreements hindered important economic decisions. For example, in Valencia and Andalusia, business communities actively took part in negotiations to speed up the approval of budgets and prevent economic losses. These cases show that involving entrepreneurs in dialogue with authorities is becoming increasingly important for the sustainable development of regions.

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