Spain’s Sanchez Loses Catalan Ally in Setback for Budget Talks

A Catalan separatist political party that props up Prime Minister Pedro Sanchez’s Spanish government said it will withdraw support for his coalition and move into the opposition, making passage of a 2026 budget highly unlikely.

Although Junts per Catalunya leader Carles Puigdemont said on Monday that his party would break with Sanchez’s Socialists, he stopped short of calling for a no-confidence vote, meaning the government isn’t at risk of collapse.