The Treasury is setting aside more than 3.8 billion euros for the regional governments outside the new autonomous financing system.
The Government will create a new fund to compensate regions that fall below average with the new model and promises to reform the inter-territorial compensation fund and regional incentives to try to balance the financing of the worst-affected communities with the new model.
Spain's Ministry of Finance has proposed a reform to the country's autonomous financing model, which was approved by the Fiscal and Financial Policy Council (CPFF) on September 4 with only Catalonia and Canary Islands voting in favor. The reform would increase regional funds by 20,975 million euros annually, but 90% of regional administrations, including those governed by the PSOE, voted against it.
The government plans to add over 3,600 million euros to the reform through a new "dynamism fund" to compensate regions with lower financing, and also intends to reform the Inter-territorial Compensation Fund and regional incentives.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
