Canarian Cabildos Express Caution Regarding Regional Government's Anti-Crisis Decree

Island corporations support the measures but warn of potential revenue reduction and request flexibility in spending rules.

Generic image of hands shaking over a table with financial documents, symbolizing economic agreements.
IA

Generic image of hands shaking over a table with financial documents, symbolizing economic agreements.

The Canarian Cabildos have expressed their support for the Canary Islands Government's anti-crisis decree, albeit with reservations, concerned about a potential decrease in their revenues due to the fiscal measures.

The island corporations have voiced their apprehension regarding the potential reduction in Canarian General Indirect Tax (IGIC) collection, which could significantly impact their budgets. According to estimates from the Vice-Ministry of Finance, this shortfall could reach 0.6% by June 30 and 1.4% if the measures are extended throughout the year.
The concern is considerable, as 42% of the revenue from this tax corresponds to the cabildos. Representatives from La Gomera and Tenerife have requested sectoral meetings with the regional Executive to monitor the crisis and address potential kerosene supply issues, which are vital for the archipelago's economy.

"The decree mobilizes about 29.5 million euros until June, a figure that would exceed 61 million if extended throughout the year."

the Vice-Minister of Finance
Key measures in the decree include a 0% reduction in IGIC on fuels, zero-rate for basic foods like salt, butter, and coffee, an expanded exemption limit for self-employed individuals and SMEs, increased fuel tax refunds for transporters, and direct aid of 7.2 million for industry and the primary sector.
In addition to revenue concerns, the cabildos present at the meeting, including El Hierro and La Palma, have demanded flexibility in the spending rule. This measure would provide them with greater financial leeway, estimated at up to an additional 1650 million, to tackle a crisis that particularly affects the Canary Islands due to their remoteness, territorial fragmentation, and external dependence.
The vice-president of El Hierro described the decree as insufficient, calling for a more robust anti-crisis plan, while the representative from La Palma requested territorial sensitivity, considering the impact of double insularity and the ongoing reconstruction efforts after the Tajogaite volcano eruption.
In the parliamentary sphere, political groups have suggested reviewing the decree after June 30 and have insisted on its processing as a bill to incorporate additional "social shield" measures. However, this possibility is not currently being considered by the Government or its supporting groups.