Approved the new financing model with the abstention of the autonomous communities of PP

The Fiscal and Financial Policy Council (CPFF) has given its approval to the Government’s proposal on the regional financing model with the favorable vote of the socialist communities, as well as of Cantabria (PRC-PSOE) and Canary Islands (CC-PP), and the abstention of the governed in majority by the PP.

This has been announced by the Minister of Economy and Finance of Extremadura, Angel Franco , who has assured that ten autonomous regions have voted in favor, while the six governed by the PP have abstained and the Canary Islands, Cantabria and the autonomous city of Ceuta, ruled in majority by the PP, have voted in favor.

After being approved, the vice presidents of the Government Elena Salgado and Manuel Chaves have highlighted that the regional financing model debated in the CPFF has not received any votes against and have said that with it all the autonomies win and none loses.

The agreement has gone ahead with the favorable votes of the seven communities of the PSOE (Andalusia, Aragon, Asturias, Balearic Islands, Castilla-La Mancha, Catalonia and Extremadura), Cantabria (PRC-PSOE), Canary Islands (CC-PP) and the Autonomous city of Ceuta, governed with an absolute majority by the PP. The six communities governed by the PP -Galicia, Madrid, Castilla y León, Murcia, La Rioja and the Valencian Community- have abstained, as has the autonomous city of Melilla, while Navarre and the Basque Country, communities to which they are not affected by the model, they have been absent from the vote.

The economic vice president explained that the government “will not save efforts” to ensure that the model obtains the greatest possible consensus in the Cortes Generales through a project that will modify the Organic Law on Financing of Autonomous Communities ( LOFCA ), although the application in each community it will depend on its being ratified in the corresponding mixed commissions.

Without mentioning any community, Salgado has ensured that during the meeting some regional representative has expressed his desire to vote against, but had instructions from his party, alluding to the PP, to abstain.

Chaves, meanwhile, wanted to make it clear that “you can be for or against the model”, but “it is not legitimate” to say that Catalonia benefits, since “it has not taken more or less than the rest”. After recalling that this community was “significantly below the average” in funding per capita, Chaves has urged that the “comparative grievance” or “confrontation” between autonomies not be used, for which he has asked for “maturity” and ” responsibility “, especially to the PP.

Salgado has defended the government document because it grants more resources to the communities, guarantees citizens equality in basic services, contributes to equity in financing per capita and increases regulatory capacity in taxes. And, according to the Government, four out of five euros will go to social policies.

Without specification in the figures
Neither Chaves nor Salgado wanted to provide the final figures of the financing and they have been sent to the communities if they want to make their calculations public, although they have insisted that they will depend on economic growth and tax revenues.

They have only mentioned the additional 11,000 million euros to the system that, according to Salgado, represent around 10 percent of total resources. However, he announced that at the end of July an initial figure will be released of the resources that the communities will be able to count on so that they can reflect it in their 2010 budgets, which will be confirmed in September.

The vice president acknowledged that the current situation is very complicated and that while in the 1999-2007 period the regional funding has had positive results, after those dates the tax revenues have fallen, which may affect the system.
Regarding the requests still made today by some communities for some variables ponder more in the system, Salgado has specified that “it does not seem easy” to introduce more weightings because they already add a hundred, and recalled that a balance has been reached with the demands of the autonomies in this aspect. However, he stressed that the request of Galicia to take into account their emigrants – some 400,000 – could not be collected.

On the other hand, some claims from Ceuta have been accepted, which will allow the autonomous city 1.5 million euros more. With respect to the criticisms of some autonomies of the PP that consider that the model penalizes the reduction of taxes, Salgado has explained that the proposal does allow this reduction and that it does not penalize it, although it has considered that at the time of economic crisis it is not solidary to decrease them.

This morning, some communities of the PP, like the one of Madrid, had announced their opposite vote, although finally there has been an instruction of the national direction of the party so that they abstain.

Catalunya, satisfied with the approval of the new model
The Minister of the Economy of Catalonia, Antoni Castells , has expressed the satisfaction of the Government of the Generalitat for the approval of the new model of regional financing, which “suits Catalonia”, allows compliance with the provisions of its Statute and is “the best for Spain”.

Speaking to the media after the meeting of the Fiscal and Financial Policy Council (CPFF), where the new regional financing system has been approved, Castells has indicated that this proposal will allow “entering a new stage”, “addressing the numerous shortcomings that had the current model “and have a new model that” should not be subject to reinvention every five years. “

In his opinion, the new model improves “appreciably” the financial sufficiency of the autonomous communities and allows to alleviate the financial “precariousness” of these administrations, which must attend the fundamental services of the Welfare State.

It also introduces updating mechanisms, which will avoid having to “reinvent” a new model every five years, while incorporating powerful leveling mechanisms between the different territories. The Government of the Generalitat de Catalunya sees with satisfaction the approval of this funding proposal that allows it to comply with the provisions of the Statute of Autonomy of Catalonia, he highlighted.

“The model is the one that suits Catalonia, but at the same time it is the best model for Spain”, stressed Castells, who added that there will be “a before and after the approval of this new financing model”, that ” It will allow us to enter a stage of stability in a matter that has been for many years an issue never resolved satisfactorily. “

Faced with the abstention of the communities governed by the PP before the new system, it has stressed that in matters of substance such as this, “alignments should not be partisan, but rather based on the logic of the State and institutions.”