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Four Underfunded Spanish Regions Demand Urgent Overhaul of Financing System

Andalucía, Comunidad Valenciana, Murcia, and Castilla-La Mancha call for reforms to address €137 billion in shortfalls and reject preferential Catalan financing.

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La consejera andaluza de Hacienda, Carolina España, charla este martes con sus homólogos de Valencia, Murcia y Castilla-La Mancha antes de unas jornadas celebradas en Sevilla

Overview

  • The current financing model, established in 2009 and unrenewed since 2014, has created disparities of up to 32% in per-capita funding among Spanish regions.
  • An IVIE study presented at a summit in Sevilla quantified cumulative underfunding since 2009, with €13.4 billion lost in Andalucía, €20 billion in Comunidad Valenciana, €4 billion in Murcia, and €2 billion in Castilla-La Mancha.
  • The regions proposed a temporary leveling fund to address immediate disparities while awaiting systemic reform, and some welcomed debt relief as a complementary measure.
  • Regional leaders criticized the central government's preferential financing agreement with Catalonia, calling it a source of inequity and political imbalance.
  • The regions emphasized the urgent need for equitable funding to ensure equal access to public services like healthcare and education across Spain.