In a critical week for Catalonia, negotiations between the Socialist Party of Catalonia (PSC) and Esquerra Republicana de Catalunya (ERC) are intensifying as they aim to finalize an agreement for the investiture of Salvador Illa as president.

ERC is pushing for a significant advance in fiscal sovereignty, particularly the ability for the Generalitat to collect certain state taxes, including income tax.

However, they demand guarantees that any agreement will remain intact even if the central government changes hands.

The stakes are high, as the outcome could reshape Catalonia's financial autonomy and influence the political landscape, especially with the looming return of former president Carles Puigdemont, which could complicate the situation further.

Both parties are racing against the clock, with a deadline set for July 31 to reach a consensus before potentially facing new elections.