Overview
- Finance minister María Jesús Montero outlined a model marrying multilateral funding for common competences with bilateral deals for territorially specific powers, with a full proposal due in January–February 2026 and a 2027 start as the goal.
- The framework pledges that no community will be harmed and aims to narrow per‑capita financing gaps, including plans to raise IRPF and VAT cessions and to end the two‑year on‑account payment lag so resources arrive faster.
- The Council of Fiscal and Financial Policy approved a 0.1% of GDP deficit limit for regions in 2026–2028, passing with support from Catalonia, Asturias and Castilla‑La Mancha, rejection by PP‑run communities, and abstention from the Canary Islands.
- The government estimates the stability path will add about €5.5 billion to regional spending capacity through 2028 and sets 2026 on‑account transfers at €157.731 billion, roughly 7% higher than in 2025.
- PP regional ministers criticized the bilateral component as conflicting with a multilateral reform and questioned the timing, while Catalonia welcomed recognition of singular competences such as policing and prisons.