Overview

• The Council of Ministers plans to clear the draft on Tuesday, 2 September, before sending it to the Congress of Deputies with the goal of final approval before year-end.
• The proposal would forgive about €83.252 billion tied to the Fondo de Liquidez Autonómica and some bank debt, with a 20% write-off available to all autonomous communities.
• Andalusia stands to receive the largest relief at roughly €18.791 billion, while Catalonia’s cut is about €17.1 billion with estimated interest savings for the Generalitat.
• The outline passed the Council of Fiscal and Financial Policy despite a walkout by PP regional finance ministers, leaving the government without guaranteed votes in the lower house.
• ERC says the write-off fulfills an existing pact and will not secure its support for the 2026 state budget without concrete advances on a singular financing model and Catalan tax collection via the Agència Tributària de Catalunya.