Corgos (Xunta de Galicia): "El nuevo modelo de financiación autonómica es una chapuza encargada a la carta"

On September 4th, the Council of Fiscal and Financial Policy (CPFF) approved a reform proposal for Galicia's autonomous financing. This decision was met with rejection from 90% of the regions, with Galicia being one of them. The Xunta de Galicia's Minister of Finance and Public Administration, Miguel Corgos, spoke about the main reasons for the rejection.

Firstly, the reform is based on a previous agreement that ties equitable financing of autonomous communities to the interests of a single autonomous community - Catalonia, which designed the system. This condition influenced the outcome of the model.

Secondly, there is no explanation for the source of the additional 21.000 million euros. The Independent Authority of Fiscal Responsibility (Airef) warned that these funds would need to be incorporated into state finances, which could be achieved through either raising revenue or cutting spending. Some regions, already struggling with limited improvements, may find themselves facing an even greater tax burden to fund this reform.

Lastly, the specific architecture of the system does not guarantee sufficient leveling. It shifts the model towards spending capacity and fiscal capacity. In other words, those with more resources, regardless of their needs, would receive more funding, diluting the weight of cost factors reflecting spending needs, such as an aging population or dispersed populations. For Galicia, this would move it from three points above the average financing to three points below, placing it in the third region with the lowest funding.