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Madrid Challenges €83 Billion Regional Debt Relief in Court

The Comunidad de Madrid has filed a legal appeal, claiming the CPFF agreement is procedurally flawed, unequal, and politically motivated.

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Overview

  • Madrid has formally appealed the CPFF's February decision to forgive €83 billion in regional debt, including €8.6 billion for Madrid, to the Audiencia Nacional.
  • Regional officials argue the agreement lacked proper quorum as several autonomous communities boycotted the vote in protest.
  • Madrid claims the debt relief unfairly benefits heavily indebted regions like Cataluña while penalizing fiscally responsible regions, violating equality principles.
  • The regional government asserts the plan will burden each madrileño with an additional €500 in debt due to redistributed obligations.
  • Madrid leaders contend the debt cancellation was a political concession to secure independentist support for Prime Minister Pedro Sánchez’s government.