The question of how Catalonia can fulfill its promised salary increases for teachers and police officers without approving new budgets has become a key issue for the region. This situation directly impacts the quality of public services and the stability of financial commitments to employees. According to El Pais, discussions on new funding schemes are causing tension in negotiations between political groups and trade unions.
Financial constraints
Catalonia’s official responsible for economy and finance, Alícia Romero, has already presented a draft budget. However, a lack of support from ERC could block its approval. If last year’s budgets continue, opportunities for new investments and programs will be limited, which many members of the government find unacceptable. Losses could amount to as much as 1.5 billion euros, money that could have gone to developing social sectors.
Despite this, authorities insist that agreements with unions on wage increases will be honored. A new agreement was recently reached with CC OO and UGT unions, providing for a 2-billion-euro salary increase for teachers over four years. In addition, police officers will receive an annual raise of 4,000 euros—the largest increase since the late 1980s. However, the details of how these measures will be funded without new budgets remain unclear.
Possible solutions
As El Pais notes, none of these agreements were included in the draft budget submitted to parliament in February. Nevertheless, representatives of the government’s economic bloc say the budget has room for such spending. If the budget is not approved, there are two possible options: reallocating funds between spending items or obtaining additional loans, which would require parliamentary approval.
Experts believe that public sector salaries are mandatory and regular expenses, so they can be covered by remaining funds, reallocation, or unexpected revenues. However, if the budget is not approved by April, the first liquidity problems may arise, forcing authorities to prioritize salary and debt payments, while also asking ministries to cut expenses.
Revenue growth and political risks
According to El Pais, this year non-tax revenues are expected to rise by almost 30% compared to last year, which could make it easier to meet salary obligations. However, some spending on investment and social programs may be postponed or reduced. Authorities highlight that fulfilling agreements with labor unions does not depend on political disagreements between socialists and republicans, but implementing all plans will require additional loans to be approved by parliament.
If the economic situation worsens, the government may reconsider its priorities and cut back on new projects. Last year, despite political challenges, a support program totaling 1.5 billion euros was implemented to offset the effects of external economic pressures. Similar measures may be needed again in the future if uncertainty persists.
Context and comparisons
The issue of financing government obligations without an approved budget is not new for Spain. Other regions of the country have also experienced disputes over the redistribution of funds and the need for additional loans. For example, in Extremadura, recent political disagreements led to the threat of early elections, which was discussed in detail in the article about negotiations between parties against the backdrop of Vox’s demands toward the regional government. Such situations demonstrate that the financial stability of regions often depends on political compromise and flexibility in budget management.
In recent years, both regional and national authorities in Spain have repeatedly had to operate under extended budgets. This has led to delays in launching new programs, but key obligations such as salaries and social benefits were usually met. Under conditions of political instability, this approach has become standard practice, helping maintain the basic resilience of the system but limiting opportunities for growth and investment.
