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2h ago

Spain Sets Early-September Cabinet Vote on €83 Billion Regional Debt Write-Down

The initiative stems from the PSOE–ERC pact to forgive part of FLA liabilities across the autonomous communities.

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Carolina España, con María Jesús Montero.
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Overview

  • Government sources and regional officials indicate the draft organic law is slated for the 2 September Council of Ministers, with the date not yet formally confirmed.
  • The proposal would condone about €83.252 billion tied to the FLA and some bank debt for common‑regime regions to improve financing conditions.
  • Catalonia’s relief is reported at roughly €17.1 billion, a quita near 20–22%, with estimated annual interest savings around €1–1.5 billion; Andalucía is projected to receive the largest volume.
  • Following cabinet clearance, the measure requires passage in the Congreso, where the government is aiming for approval before year‑end despite PP resistance registered at the CPFF.
  • ERC frames the move as fulfillment of the investiture commitment and continues to press for a distinct Catalan financing model ahead of 2026 budget negotiations.