Salvador Illa, president of the Generalitat

On 8 August 2024, Salvador Illa was invested as president of the Generalitat of Catalonia, the first non-independence president since 2010. The investiture, the vote in the Parliament that confirms the candidate as president, closed a fourteen-year period and opened a new stage in Catalan politics, with a government taking office after the elections held in May.

Beyond the political meaning, which each citizen will judge in their own way, a change of government has practical consequences for anyone doing business or taking decisions on wealth in Catalonia. Spending priorities change, as does the tone of the relationship with companies and, at times, the pace at which rules affecting activity are approved. Understanding that context helps in planning with better judgement. This note reviews the change of political cycle, the priorities announced and what companies can do to make the most of the moment.

A change of stage

For anyone who lives or works in Catalonia, what matters about the investiture is what comes next. A change of president does not transform rules or budgets overnight, but it does alter the order of priorities and the way the relationship with other administrations is managed.

Institutions have enormous inertia, and much of what conditions the life of a company, such as regional tax rules, licences or grants, will remain in force until expressly modified. It is therefore worth distinguishing between the symbolism of the change, which is immediate, and its concrete effects, which arrive in stages and require monitoring. That is why companies would do well to read the small print of each decision and not just the headline announcing it.

Three priorities

The new government put housing, water and regional financing among its priorities. These issues affect families and economic activity alike. Regional financing is the system that determines what resources the autonomous communities have to provide services such as health and education, and its reform depends largely on agreements with the State.

In all of them, public decisions directly shape costs and investment. Access to housing affects the ability to attract and keep talent; the availability of water, industry, farming and tourism; and financing, the administration’s capacity to invest in infrastructure and services. Each of these questions is reflected in the profit and loss account of companies. Companies with a large workforce or significant supply needs will notice sooner, but none is left aside.

Making use of the dialogue

For Catalan companies, a period of more institutional dialogue and predictability. It is worth using it to follow closely the decisions taken and to raise the business’s own needs in good time, whether individually or through business associations, which usually have more capacity to engage with administrations. Constructive dialogue does not guarantee that every request will be met, but it does make it easier for problems to be known.

A good practice is to identify which public decisions affect the business most, such as taxation, grants, permits or the infrastructure it depends on, and to follow their evolution regularly. When the context is more stable, it is also easier to plan investment and hiring in the medium term, always without assuming that conditions will remain unchanged. Reviewing the assumptions of the strategic plan each year in light of the institutional environment is a simple and useful practice.

A good institutional framework helps long-term decisions.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.