Spain's Government Breakthrough: A Deal with Catalonia's Junts Party

Spain's minority government struck an agreement with the Catalan party Junts to advance several economic initiatives, potentially easing legislative gridlock. The deal involves pension increases and flood relief, but excludes tax measures. Prime Minister Sanchez aims to balance concessions to diverse parties amid calls for a confidence motion.

In a strategic move, Spain's government reached a pivotal agreement with the Catalan separatist party Junts, ending a prolonged legislative deadlock. The deal, which could pave the way for the upcoming budget bill, signals cooperation on crucial economic measures such as pension hikes and flood relief.

Prime Minister Pedro Sanchez highlighted the importance of dialogue in governance, as his administration extends public transport subsidies despite earlier parliamentary rejection. Meanwhile, fiscally conservative Junts has agreed to negotiate tax measures later, opposing windfall taxes impacting Catalonia's energy sector.

The political landscape remains complex, with Sanchez balancing diverse party demands. Junts, led by Carles Puigdemont, has pushed for a confidence motion, testing the government's stability. Nevertheless, Sanchez remains steadfast, citing no need for such a measure at present.

(With inputs from agencies.)