The Autonomous Communities ask Montero for more fiscal autonomy and an extra 15,000 million in new financing




The first preliminary maneuvers for the definition of the future regional financing model have barely started and the thing seems to be walking towards stagnation. The proposal to define the concept ‘adjusted population’ proposed by the Ministry of Finance, from which 75% of the nearly 120,000 million euros of the regional financing system are distributed today, has been flatly rejected by practically all of the regional governments, which not only do not share it but also make the Government ugly by trying to divert the debate from what the majority see as the main problem of the current model: the insufficiency of the resources provided to the autonomous communities to meet the cost of the essential services they provide to their citizens: health, education and social services.

Maria Jesus Montero has tried to guide the negotiation towards equity in the distribution of available money and the regional governments have come to say no, that the central issue here must be how the State Government is going to allocate more money so that the regions manage their services with sufficiency and how it is going to give them more fiscal space to manage their income.

An insufficient proposal

If anything has been emphatically made clear by the pleadings that the fifteen autonomous communities of the common regime – which are affected by the regional financing system – have submitted in recent days to the Treasury proposal, it is that the Government will not carry out a new regional financing model if you don’t put more money on the table.

The Valencian Community, which in recent months has become the spearhead of regional demands for a new financing model with more resources for the Autonomous Communities, estimates in its report of allegations in 14,433 million euros per year the deficit of the system to sufficiently finance public services services provided by the territorial administrations. The Region of Murcia raises that annual gap to 16,484 million. The Community of Madrid denounces that the current system causes it to lose 800 million euros each year, amounts similar to those claimed by Andalusia or Galicia, while Cantabria speaks of a loss of nearly 500 million

The Government of Sánchez already knows first-hand that what the Spain of the autonomies is asking for is more money. And each for his own. The Valencian Community and the Region of Murcia to defray the deficit caused by the current financing model; Canary and Balearic Islands to compensate for its insular nature; Asturias and Cantabria to cover the additional costs derived from its rugged orography; Galicia, Aragón, Castilla y León or Castilla-La Mancha to meet the extra needs derived from the dispersion of their population or the extensive territory they have to attend to.

And the ‘rich’ autonomous communities such as Madrid or Catalonia, what they ask the Treasury is greater fiscal autonomy and a more balanced distribution of the tax basket, so that they have more capacity to define their own fiscal space; and if possible take into account your higher cost of living when allocating the funds.

The avalanche of demands for autonomy has buried the Treasury’s proposal, which focused on proposing what it considered to be a more equitable distribution of the funds of the financing system. Montero proposed allocating a greater volume of system resources to financing Health, Education and Social Services at the expense of reducing funds for other less essential policies, and reinforcing financial support for the most depopulated regions.

From the Community of Madrid, the Treasury is affected by proposing a new criterion for the distribution of funds without even rethinking the effectiveness of the expenses being incurred nowadays. He does so in his allegations report in a unique way, resorting to a phrase of Charles Monastery, one of the experts who has left the committee for tax reform promoted by the Government in recent weeks.

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