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Spain Unveils Regional Financing Overhaul With Ordinality, About €4.7 Billion More for Catalonia

The finance ministry now sends the plan to the regional fiscal council ahead of an absolute‑majority vote in Congress.

Overview

  • María Jesús Montero presented a proposal adding roughly €21 billion to the common system, embedding the ordinality principle and earmarking about €4.7 billion in extra funding for Catalonia.
  • Government figures show the largest gains for Andalucía (€4.846 billion), followed by Catalonia (€4.686 billion), the Valencian Community (€3.669 billion) and Madrid (€2.555 billion), with all regions slated to receive more resources.
  • The plan will be discussed at the Council of Fiscal and Financial Policy next week, with an anteproyecto expected within about two months, a congressional vote targeted before summer, and potential entry into force in 2027.
  • Approval requires reforming LOFCA and securing 176 votes, as the PP opposes the approach, several regional leaders voice objections, and Junts signals it will file a full amendment, leaving the outcome uncertain.
  • No agreement was reached on granting Catalonia full IRPF collection, and key mechanics such as a solidarity quota and tax‑management arrangements still need definition.