New regional law aligns with constitution, Morocco's Constitutional Court rules

Morocco's Constitutional Court has declared that a new organic law concerning the country's regions is in line with the constitution. The ruling, issued on July 4, 2026, addresses modifications to organizational law No. 031.26, which amends organic law No. 111.14 on regions. The court confirmed that amendments to articles 82, 83, and 91 reorganize the regions' autonomous powers. These changes aim to boost economic development by supporting productive investment, encouraging entrepreneurship, and establishing regional centers for agricultural and food product marketing. The court stated these amendments align with the constitutional principle of advanced regionalization and the objectives outlined in Article 146 of the constitution. Further amendments to articles 98, 115, and 194 were found to be consistent with the law's provisions, particularly regarding the transformation of regional project implementation agencies into regional project implementation companies. The court emphasized that granting the regional council exclusive authority to deliberate on financial matters and strategic choices, as per Article 98, reinforces the principle of free management under Article 136 of the constitution. Additionally, the court found that amendments expanding the activities of regional development companies (Articles 145 and 146) adhere to the constitutional powers granted to regions under Article 140 and uphold the principle of free management. The ruling also covered modifications to Article 188, which mandates the state to allocate a permanent percentage of tax revenues to regions. Starting in the 2027 fiscal year, this includes 5% of corporate tax revenue, 5% of income tax revenue, and 20% of insurance contract revenue, supplemented by annual state budget allocations. The total transfers to regions are expected to be at least 12 billion dirhams annually. The court cited Article 143 of the constitution, which positions regions at the forefront of regional development program preparation and monitoring, and Article 141, which ensures regions have their own financial resources and state-allocated funds.