Overview
- The Council of Fiscal and Financial Policy approved the finance reform on Friday with only the Ministry of Hacienda plus Catalonia and Canarias voting in favor.
- The proposal injects roughly €21 billion a year into the regional financing system and reallocates funds so Andalucía, Catalonia, Comunitat Valenciana and Madrid are among the largest net beneficiaries.
- Most regions — about 87–90% of those present — voted against the plan, Madrid attempted a failed boycott to block quorum, and several governments have threatened legal action or demanded the proposal be withdrawn.
- The file now goes to the Council of Ministers and then the Congress where the government lacks a guaranteed majority and faces a full-text amendment from Junts while the minister has said he will negotiate parliamentary changes.
- The reform is voluntary for regions to adopt, the current model dates from 2009 and lapsed in 2014, and the two-step process of law approval followed by regional adhesion creates uncertainty for services funding and political pressure ahead of the government's 2027 timetable.