Spanish government breaks legislative deadlock with Catalan ally

Spain’s minority government reached a deal with the Catalan separatist party Junts on Tuesday to approve several economic measures in parliament, ending a deadlock that had raised concerns over the government’s ability to legislate.

This agreement could pave the way for the upcoming budget bill, which has yet to be presented by Socialist Prime Minister Pedro Sanchez’s administration. In the meantime, Spain is extending its 2023 spending plan, as it did the previous year.

Junts stated that the deal includes measures from a bill rejected last week, such as pension increases, relief funds for Valencia following deadly October floods, and a six-month extension of public transport subsidies. However, it excludes a proposed tax on energy companies, which Junts has argued would hurt investments in wealthy Catalonia.

via Reuters