Catalonia's Debt Deal Sparks Controversy

Published: 2025-02-25

The Spanish government’s decision to forgive €17.1 billion of Catalonia’s debt has ignited political tensions.

The deal, part of an agreement with ERC to secure Pedro Sánchez’s re-election, has drawn criticism from other regions and political parties.

Junts, a Catalan party, argues the deal is insufficient, demanding full debt forgiveness of €73 billion.

Meanwhile, Compromís, representing Valencia, opposes the agreement, citing unfair treatment compared to their own region’s financial struggles.

The controversy highlights deep divisions over regional funding and autonomy in Spain, with critics accusing the government of favoring Catalonia at the expense of others.

This debate could shape future political alliances and fiscal policies.