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Spain Presses Regional Financing Overhaul as Valencia Demands a Legal Text

With a June target for a draft law, the government now seeks support through one-to-one technical meetings.

Overview

  • After advancing the plan at the CPFF with Catalonia’s backing, the Finance Ministry will call immediate bilateral technical meetings with all regions.
  • Moncloa aims to register the reform in Congress before the end of June, with approval targeted so the new system operates in 2027.
  • Valencian spokesperson Miguel Barrachina declined to confirm attendance at the bilateral talks and insisted negotiations wait for a formal legal text, listing demands on equalization, debt, dependency and health costs.
  • Castilla y León’s president Alfonso Fernández Mañueco called the proposal a grave injustice and said the region would receive only 1.29% of new funds, while the Junta plans legal action once a concrete normative act exists.
  • ERC leader Oriol Junqueras defended the pact’s ‘singularity’—including ordinality and managing 80% of VAT—and said the party is pushing for full IRPF collection as internal critics work to force a non-binding members’ consultation.