Overview
- At the CPFF meeting, the Government outlined a reform for régimen común regions that it wants approved to take effect in 2027, with María Jesús Montero insisting no community would lose out and overall resources would rise.
- Hacienda flagged technical shifts under study, including increasing the share of ceded IRPF and VAT to regions and replacing the current advance-payment mechanism so transfers arrive faster.
- The CPFF also set a 0.1% of GDP deficit target for autonomous communities for 2026–2028, a path backed by PSOE-led regions and rejected by PP-led governments, and the framework still requires congressional approval.
- PP regional leaders challenged the compatibility of bilateral deals with multilateral rules and decried the lack of prior negotiation, while Montero floated but did not commit to disincentives against perceived tax dumping.
- Catalonia’s government welcomed recognition of its singular competences, and ERC tied opening talks on the 2026 Catalan budget to a financing pact, with a separate vote to expand the Catalan tax agency’s powers pushed to February.