Spain's PSOE tackles Catalan budget shield and Madrid primary ahead of 2027 elections

Catalan President Salvador Illa approved a first‑year budget of €49.1 billion, providing a financial buffer of about €6,300 per resident and locking the regional legislature into its term until the scheduled 2027 elections. The budget, negotiated with ERC and the Comuns, is presented as a political safeguard that prevents an early election and gives Illa freedom to pursue his agenda.

At the same time, the Spanish Socialist Workers' Party (PSOE) in Madrid is embroiled in a contested primary. Grassroots member Silvia López has entered the race to lead the party's list for the mayoral contest against incumbent Isabel Díaz Ayuso, needing to collect roughly 1,600 signatures by early July to qualify. The internal battle reflects broader discontent with national leader Pedro Sánchez and highlights strategic challenges for the PSOE ahead of the 2027 regional elections.