The Government pushes through its regional financing proposal with 21,000 million more and frustrates Ayuso's boycott attempt

The Ministry of Finance has managed this Friday to push through its proposal to reform regional financing, pending renewal since 2014. The Fiscal and Financial Policy Council (CPFF) has given its endorsement to the new model with the favorable votes of Catalonia and the Canary Islands, sufficient for the project to continue its processing.

The meeting ended with the rejection of the communities governed by the Popular Party and of the two socialist autonomous communities included in the common regime, Asturias and Castilla-La Mancha. The Community of Madrid was the only absentee. Isabel Díaz Ayuso's government had tried to extend the boycott to the other popular executives to prevent the Council from reaching a quorum, but none supported her maneuver.

The Minister of Finance, Arcadi España, has described the progress as "historic" for a reform that seeks to replace the model approved in 2009. He also admitted that the proposal can be improved during its passage through the Cortes. "I ask parliamentary groups to put aside the noise and fury in the negotiation and to reach an agreement," he said at the end of a meeting lasting more than three hours.

Ayuso is left alone in her boycott

The Madrid Executive announced on Thursday that its Minister of Economy, Finance and Employment, Rocío Albert, would not attend the meeting. Its stated objective was to convince the rest of the PP communities to prevent the Council from being constituted. The strategy failed and Madrid renounced defending its position within the body while the other territories participated and voted against.

Some popular representatives have distanced themselves from the formula chosen by Ayuso. The Valencian counselor, José Antonio Rovira, assured that Madrid's absence lacked "any kind of usefulness". The Extremaduran official, Elena Manzano, claimed "maximum institutional loyalty" to justify her presence, while Galicia explained that it preferred to show its rejection from within.

Madrid did not even formally notify the Ministry of its absence. The seat reserved for Rocío Albert remained empty and a copy of El dolor de los demás, by the writer Miguel Ángel Hernández, appeared on the table, placed as a courtesy by Arcadi España. The unoccupied chair ended up becoming the image of the regional government's isolation.

Ayuso's position also clashes with the territorial figures of the reform. The Community of Madrid would receive an additional 2,555 million euros in 2027, which would place it as the fourth most benefited autonomous community in absolute terms. The model also contemplates a voluntary adherence, so that each territory can remain in the current system if it prefers to renounce the foreseen increase.

More resources for public services

The Treasury's proposal would incorporate an additional 20,975 million euros into the system during its first year of application. The total resources for the common regime communities would reach 224,507 million in 2027, with a state contribution close to 19,000 million and greater regional participation in the main taxes.

The communities would manage 55% of the Personal Income Tax (IRPF), compared to the current 50%, and 56.5% of the Value Added Tax (IVA). New criteria are also introduced to calculate the adjusted population, taking into account factors such as aging, school-age population, dispersion, insularity, and costs derived from climate change.

Andalusia would be the main beneficiary in absolute terms, with an additional 4,846 million each year. Catalonia would receive 4,686 million; the Valencian Community, 3,669 million; and Madrid, the aforementioned 2,555 million. The equalization mechanism seeks to reduce financing differences per inhabitant and reinforce funds for health, education, and social policies.

The CPFF's support does not clear up all difficulties either. The regional governments of the PP, Asturias, and Castilla-La Mancha argue that the project was born from the negotiation between the Executive and Esquerra Republicana de Catalunya (ERC) and demand to restart the process. The Treasury defends that the text has been debated with all communities and reminds that no territory would receive less money with the new system.

The project will now go through the Council of Ministers before beginning its parliamentary journey. As it is a reform by organic law, the Government will need an absolute majority of 176 deputies in Congress. Junts has announced a total amendment and demands an economic agreement for Catalonia, so its final approval remains open. The Executive maintains the objective that the new model comes into force on January 1, 2027.