Overview
- A report from the Cámara de Cuentas de Andalucía published Friday found long‑running shortfalls and concluded that the state funded only 78.48% of core service spending, producing an average annual gap of €4.33 billion for those services.
- The national finance council (CPFF) approved a new distribution using a recalculated 'población ajustada' that treats Andalucía as if it had roughly 155,000 fewer people and will reduce the region’s share of tax revenue.
- Andalucía’s regional government filed formal alegaciones requesting that adjusted population not deviate more than 1% from real population and proposing a full equalization fund paid for by reallocating the VAT-for-small-businesses pot and a €1,000m climate fund.
- Madrid and the Finance Minister rejected Andalucía’s fixes, saying a 1% cap would shift large losses to other regions such as Castilla y León and arguing the approved model has backing from the Ministry of Finance plus Cataluña and Canarias.
- The reform now moves to parliamentary processing with a planned start date of 1 January 2027, and the outcome will depend on further bargaining with nationalist parties and possible legal or political challenges from Andalucía.