On Tuesday, the President of the Government, Pedro Sánchez, defended the agreement reached between the PSC and ERC to ensure the investiture of socialist Salvador Illa as president of the Generalitat of Catalonia. Sánchez emphasized that this was a “good” pact for both Catalonia and Spain. He rejected criticism from the PP and reiterated the importance of solidarity and equality among all Spaniards. He also praised ERC as an ally in moving past the judicial issues that have plagued Catalonia for over a decade. Despite internal criticism within the PSOE, Sánchez pointed out that the agreement had received unanimous support from the party’s executive committee, except for one abstention, and he respected the decision that ERC would make in an upcoming vote on the agreement. Sánchez highlighted the importance of having governments that work to strengthen public services, regardless of the funding system in place.

After meeting with King Felipe VI at the Almudaina Palace in Palma, Sánchez did not address a recent legal issue involving a judge investigating the wife of the Prime Minister. He stated that he would not comment on the matter after meeting with the King. The annual summer meeting between the King and the President usually takes place at the Marivent Palace, the summer residence of the Spanish Royal Family, but this year, it was held at La Almudaina due to other official events taking place. The topics discussed during the meeting included the recent agreement in Catalonia, the situation with the judge, and the outcome of the recent elections in Venezuela. These meetings are an opportunity for the King to discuss current issues with the Prime Minister and have been held once per summer since the time of José Luis Rodríguez Zapatero.

Following his meeting with the King, Sánchez traveled to the Balearic Government headquarters to meet with the regional president, Marga Prohens, marking their first official meeting since her election after the 2023 regional elections. Discussions focused on various issues, including a legal challenge from PP-governed regions, including the Balearic Islands, to compel Sánchez to convene a conference of regional presidents to address the situation of unaccompanied migrant minors. There are also ongoing conflicts between the regional government and the central government, such as a potential legal challenge to a simplification administrative decree passed by the PP government of the Balearic Islands, which includes provisions for construction permits in rural areas.

One of the key topics of discussion was the Balearic Islands’ demands regarding the regional financing system. They are calling for a greater consideration of population growth and insularity in the funding distribution, as well as adherence to the principle of ordinality, which ensures that no region contributing more resources should receive less funding than another contributing less. However, these issues have been overshadowed by the recent agreement between the PSC and ERC to install Salvador Illa as the President of the Generalitat, pending approval by the Republican militancy. The agreement includes provisions for Catalonia to leave the common fiscal regime and potentially allow the regional tax agency to collect all state taxes.

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