Tensions are escalating between Esquerra Republicana (ERC) and the Spanish government over a disputed financial agreement for Catalonia.

ERC has warned that it may withdraw its support for Prime Minister Pedro Sánchez if the government fails to honor the agreement, which ERC claims includes a unique financial arrangement akin to the Basque Country's economic concert.

Vice President María Jesús Montero has denied that such an agreement exists, stating it is neither an economic concert nor a typical financial reform.

This denial has sparked a strong reaction from ERC, which insists on the agreement's existence and threatens to block the national budget if their demands are not met.

Meanwhile, Junts, another Catalan party, has criticized ERC for misleading the public about the agreement, further complicating the political landscape.

The controversy highlights the fragile nature of Sánchez's coalition, which relies on ERC's support to pass key legislation.