The Spanish Socialist Workers' Party (PSOE) is facing internal tensions following a controversial agreement with the Catalan Republican Left (ERC) to grant Catalonia greater fiscal autonomy.

This deal, which helped secure Salvador Illa's position as President of the Generalitat, allows Catalonia to manage its own taxes and pay a solidarity fee to the state.

Many regional leaders within the PSOE have expressed dissatisfaction, viewing the agreement as a privilege for Catalonia that could harm other regions.

The upcoming Federal Congress in Sevilla will be crucial, as it will address the broader issue of regional financing, potentially setting a binding resolution.

Despite the discord, no major revolt against party leader Pedro Sánchez is expected, as he encourages open discussion among party members to resolve the discontent.