The Congress of Deputies has taken a step forward in the processing of the regional debt forgiveness proposed by the Central Government. The initiative overcame the amendments in their entirety presented by the People's Party (PP) and Vox, with the support of Coalición Canaria (CC). However, CC deputy Cristina Valido has made it clear that future support will depend on whether the amendments presented by her party are taken into account.
Valido described Vox's amendment as an attack on the State of Autonomies, making it impossible to support. Despite this favorable vote for the Government's initiative, it does not represent a blank check for the PSOE. The Canarian nationalist party seeks recognition for the fiscal effort of autonomous communities that have met financial stability objectives.
The investiture agreement between the PSOE and Esquerra Republicana de Catalunya (ERC) included the forgiveness of over 17 billion euros of the Generalitat's accumulated debt. In total, the Central Government has proposed forgiving over 83 billion euros to all autonomous communities. The distribution of this aid is asymmetric, primarily benefiting the most indebted communities such as Andalusia (18.791 billion euros) and Catalonia (17.104 billion euros).
Canarias, on the other hand, would benefit from 3.259 billion euros. The Canarian nationalists criticize this disparity, although the Ministry of Finance argues that the Archipelago benefits the most in percentage terms (over 45% of its liabilities), due to its lower accumulated debt. Valido has indicated that if the amendments from compliant communities, like Canarias, are not recognized, they will not accept the mechanism.
The CC deputy also questioned the argument from communities like the Valencian Community (11.210 billion euros) regarding the scarcity of funds from the regional financing system. She recalled that Canarias, despite being at the bottom until 2016, remained within the deficit and debt limits thanks to its efforts and the decoupling of its Economic and Fiscal Regime (REF) from the current system.
Junts, another PSOE ally, although voting against the PP and Vox amendments, also considers the amounts allocated to Catalonia insufficient. The Minister of Finance, Arcadi España, highlighted that 70% of the forgiven sum is allocated to regions governed by the PP, mentioning Andalusia and Canarias as the most benefited.
