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Spain's regional financing reform begins legislative journey with eyes on Junts

From El País · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Spain's proposed regional financing reform passed the Fiscal and Financial Policy Council with support from only Catalonia and the Canary Islands, while the other territories rejected it.
  • The government plans to submit the proposal to the Council of Ministers in the coming weeks, but Junts' support will be essential in Congress and remains unlikely.
  • The model would add €21 billion annually to the common fund for regional public services and create a separate €3.3 billion fund.

Spain's new regional financing model has begun its legislative journey under heavy political pressure. The proposal secured approval on Friday in the Fiscal and Financial Policy Council, but only Catalonia and the Canary Islands voted for it. The remaining territories rejected the plan.

Finance Minister Arcadi España said the government plans to take the reform to the Council of Ministers in the coming weeks. Its harder test will come in Parliament, where the outcome looks uncertain. The People's Party remains opposed, while Junts holds the support the government needs to turn the proposal into law.

historic opportunity

· Josep Maria CrusetCruset used the phrase to describe negotiations over the regional financing system and Junts' demand for a special model for Catalonia.

Junts is demanding a Basque-style economic pact for Catalonia. The independence-minded party has warned that anything short of removing Catalonia from the common financing system will face its veto in Congress. Josep Maria Cruset, a Junts per Catalunya lawmaker, said his group would submit a motion rejecting the reform in full.

We want the money of the Catalans to stay in Catalonia, in the same way that the money of the Basques stays in the Basque Country.

· Josep Maria CrusetThe Junts lawmaker summarized his party's demand for a Catalan financing arrangement modeled on the Basque system.

Cruset described the negotiations as a “historic opportunity” to demand a special model for Catalonia. “We want the money of the Catalans to stay in Catalonia, in the same way that the money of the Basques stays in the Basque Country,” he said. He also urged lawmakers from Esquerra, the Comuns and the Socialists to support the demand.

The government faces a narrow timetable before next year's general, regional and local elections intensify political campaigning. It also says it intends to present a 2027 budget despite lacking congressional support for now. Officials hope the reform's financial offer can open negotiations with some groups. If approved, it would increase the central government's annual contribution to the common fund by €21 billion for services such as healthcare, education and care for dependent people. A separate €3.3 billion fund would also support the territories outside that system.

We hope that the Catalan political parties, the lawmakers from Esquerra, the Comuns and the Socialists, will support us.

· Josep Maria CrusetCruset challenged other Catalan parties to back Junts' position in Congress.
About this summary

Originally published by El País in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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