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2w ago

Government Splits Emerge Over Madrid’s Low-Tax Model and Catalonia’s Financing Bid

PP leaders rally behind Madrid’s tax autonomy in a national debate fueled by dumping fiscal accusations driving calls for a special Catalan financing deal.

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El consejero de Presidencia, Justicia y Administración Local, Miguel Ángel García Martín, ha visitado esta mañana las rutas de senderismo de la Sierra Norte
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Overview

  • Salvador Illa renewed dumping fiscal accusations against the Community of Madrid, arguing its deep tax cuts undermine solidarity among Spain’s regions.
  • PP leaders, led by Isabel Díaz Ayuso and backed by vice secretary Juan Bravo and Alberto Núñez Feijóo, insist Madrid’s tax cuts are lawful, generate growth and leave the region contributing roughly 70% of its revenue to the national funding system.
  • Health Minister Mónica García added government weight to the dumping fiscal debate, criticizing Madrid’s near-elimination of wealth and inheritance taxes and linking them to reduced investment in health and social services.
  • Divergent positions within the national government have emerged over how to address Madrid’s tax model, complicating efforts to forge a unified fiscal policy.
  • Catalan authorities are using dumping fiscal allegations to justify negotiations for a special financing arrangement, reigniting debates on regional solidarity and competitive balance.