Experts and political leaders from nine autonomous communities have expressed concerns over the difficulty of reaching an agreement on regional financing. The Minister of Finance, Maria Jose Montero, had indicated a willingness to address the “singularities” of Catalonia and other regions within a comprehensive reform of the outdated current model. The Popular Party has opposed any agreement being reached solely with the Generalitat, as advocated by ERC, while the government has rejected bilateral negotiations. Calls for a more comprehensive approach to the issue of regional financing have been made by the Second Vice President, Yolanda Díaz.
Differences in the distribution of public resources among autonomous communities have resurfaced with the demands from Catalonia’s independence parties for a model similar to the system in the Basque Country and Navarra. The negotiations between the PSC and ERC, along with Montero’s statements, have created tension among regional leaders, who are willing to break party lines on the issue of regional financing. Most autonomous communities oppose recognizing Catalonia’s “singularity” as expressed by Montero, especially excluding the two regions not participating in the common regime.
Regional leaders, including Andalusia’s President Juan Manuel Moreno Bonilla, have criticized any differential treatment given to Catalonia, claiming their communities would be losers in such a scenario. Several presidents and regional ministers have echoed these sentiments, highlighting concerns about fairness and equality in the distribution of resources. Suspicions around potential pacts have arisen not only among the Popular Party but also within the Socialist Party, with leaders like Emiliano García-Page and the PSOE of Extremadura cautioning against conceding privileges in the negotiation of a new funding system.
Negotiations with Catalan parties have added complexity to an already challenging topic for Prime Minister Pedro Sánchez, given the dominance of the Popular Party in regional governments. The modification of the financing system directly impacts the ability of regions to manage essential services like education and healthcare, prompting calls for increased resources in annual budgets. ERC has been firm in its position, insisting on a bilateral negotiation separate from multilateral forums, unlike the government’s stance, while presenting a proposal for a “singular financing” model similar to past suggestions from Artur Mas to Mariano Rajoy.
During the investiture negotiations with Sánchez, ERC insisted on a separate financing discussion and warned of withdrawing support if their demands were not met. Salvador Illa’s election program also included changes to the model, emphasizing collaboration with other regions while granting Catalonia more control over taxes through a consorci tributari. The complex dynamics surrounding regional financing negotiations demonstrate the challenges faced by political leaders and the need for a balanced approach to address the diverse concerns and interests of different autonomous communities.
