Junts has agreed to let the Spanish Congress process the government’s proposed law to partially write off Autonomous Liquidity Fund (FLA) debt, but the party wants a larger reduction, especially for Catalonia. Jordi Turull, Junts’ secretary general, confirmed the shift on Thursday, saying the party would use the parliamentary process to negotiate a higher percentage of debt cancellation. He questioned why the current plan limits the write-off and made clear that Junts intends to push for a larger share for Catalonia.
This is a shift in Junts’ position. When the government first introduced the FLA debt-relief proposal in February 2025, party spokesperson Mònica Sales dismissed it as “a joke” and criticized its “one-size-fits-all” approach. Over the following months, Junts signaled conditional support if the measure came as a decree. The party is now prepared to let the bill advance through Congress and seek amendments benefiting Catalonia. El Nacional reported that Junts joined the PSOE in rejecting amendments that would have blocked the bill’s consideration, with ERC also voting against them. Junts warned that the proposed cancellation should be improved and expanded. That procedural support allows the legislative process to continue, but does not amount to final approval of the government’s terms.
The current draft law would have the Spanish state assume €83.25 billion in debt from common-regime autonomous communities, excluding Navarra and the Basque Country. Catalonia stands to have €17.1 billion written off, the second-largest amount after Andalusia’s €18.8 billion. The Community of Valencia and Madrid would also receive impressive relief. The bill, under debate since December 2025, cannot pass without Junts’ backing, giving the party use to demand changes. These figures reflect the draft’s proposed allocations; the measure remains subject to the parliamentary process.
Spain’s Council of Ministers created the FLA on 13 July 2012 under Royal Decree-Law 21/2012, amid the sovereign-debt and regional-financing pressures of the early 2010s. It was designed to provide liquidity to participating autonomous communities unable to access normal market financing, not to replace or permanently restructure the regional financing system. The fund is attached to the Ministry of Finance, while the Instituto de Crédito Oficial manages its financial operations. The ministry places the FLA within a broader structure for addressing regional financing and debt obligations. That structure also includes supplier-payment plans and the Financing Fund for Autonomous Communities.
Turull stressed that FLA debt relief is a temporary measure, separate from the broader and more complex question of regional financing reform. He said the party’s willingness to negotiate on the law does not signal warmer relations with Pedro Sánchez’s government. Turull added that the European Union Court of Justice’s recent ruling on the amnesty law does not change Junts’ stance. He accused the government of failing to honor the agreements that secured Sánchez’s investiture, saying Junts has fulfilled its commitments while the government has not. He also pointed to numerous unresolved issues beyond the amnesty law.
Despite the ongoing negotiations in Congress, Turull described the current legislative term as “failed” and said Junts would continue to approach each issue individually. The party’s critical tone was clear again on Friday, when Turull publicly rebuked Transport Minister Óscar Puente for urging Carles Puigdemont to return to Spain following the EU court’s amnesty ruling. Turull called Puente’s remarks “misery and frivolity,” responding to the minister’s suggestion that Puigdemont’s return would signal political leadership.
The debate over the FLA debt-relief law comes amid heightened political tension in Spain, with the government’s relationship with Catalan parties under close scrutiny. The amnesty law remains a flashpoint after the EU court ruling. Catalan leaders have also pressed for immediate implementation, arguing that legal barriers have fallen, as explored in this recent report on Catalonia’s push for swift amnesty enforcement. The amnesty dispute is distinct from the technical design of FLA debt relief, but it shapes the political climate for negotiations. Salvador Illa, president of the Generalitat de Catalunya, has challenged Junts and ERC’s claims to exclusive credit for implementing the amnesty. Junts, meanwhile, continues to present its parliamentary votes as a way to secure concessions. Cooperation on an individual measure, the competing claims make clear, does not amount to a stable political alliance.
Later reporting has also cast the proposal’s prospects as dependent on Congress and the political timetable. The cancellation remains pending as lawmakers focus on the regional-financing model and FLA relief, and implementation would be a state-level decision. Created during Spain’s financial crisis, the FLA was designed to provide liquidity to regions unable to access markets. The proposed write-off is a debt-relief measure within the existing financing structure, as well as a political bargaining point. The outcome of Junts’ negotiations could significantly affect Catalonia’s finances and the wider debate over Spain’s territorial model.
