Catalonia Budget Stalls, Government Announces Halt

The Catalan government's 2026 budget proposal has been withdrawn after months of warnings about potential austerity measures. President Salvador Illa and Oriol Junqueras have agreed to a four-month extension to negotiate a deal, citing long-standing delays in planned projects. The government is temporarily suspending the budget to approve a €6 billion credit line to ensure payroll payments and salary increases for public employees.

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