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Government Makes Regional Financing Overhaul Voluntary as €21 Billion Plan Draws Fire

Adoption is optional, testing support for a plan that faces resistance.

Overview

  • Finance Minister María Jesús Montero told the CPFF that regions may opt into the new system or remain under the 2009 regime, with bilateral and multilateral talks to follow.
  • The proposal would raise resources for common‑regime communities by about €20.98 billion next year through higher shares of IRPF and VAT, with an anteproyecto slated within roughly two months.
  • Preliminary estimates point to the largest per‑capita gains in Murcia (around 19%) and the Valencian Community (about 17%), while Catalonia would rise by €627 per resident to roughly €5,200, above the national average.
  • Political backing is thin—only the Catalan government has endorsed the plan—while PP‑led regions reject it, Madrid labels it discriminatory, and in Congress Junts plans a full amendment as BNG and parts of Sumar voice opposition.
  • Think tank Fedea warns that a €1 billion Climate Fund and an ‘IVA Pymes’ mechanism could reintroduce arbitrariness, even as it deems the core model reasonable and notes narrower gaps in relative financing.