Overview

• Spain has put forward a €83.25 billion forgiveness plan to lighten crisis-era debts and help autonomous communities regain financial autonomy.
• AIReF reiterates that lower interest costs from the write-off do not increase spending capacity under the rule of gasto, constraining any immediate boost to public services.
• The Valencian government maintains its refusal to join the plan and, even if it did, AIReF projects it would breach the spending rule in 2025 and 2026, limiting use of savings estimated by the region at about €165 million in 2025.
• Analysts at AIReF and AFI say regions like Catalunya, Valencia, Murcia and Castilla-La Mancha would remain overleveraged and may struggle to return to markets unless the financing system is reformed.
• IVIE’s Francisco Pérez criticizes the distribution as opaque, arguing Catalonia receives roughly €4 billion more than warranted and Valencia too little, as alternative proposals in Parliament seek larger reductions for underfinanced regions.