Partisanship versus welfare: the PP's rejection of debt relief

Why does the Popular Party oppose such a sensible measure as the partial debt forgiveness approved by the coalition government? Beyond the spoiler -like title, it's worth reviewing recent history to understand the orders from Genoa that led the Popular Party's regional presidents to reject significant financial relief.

All the autonomous communities have been struggling with debt overhang for more than a decade. During the years of cuts, Mariano Rajoy's government imposed austerity measures that stifled public services and forced the regions to finance themselves through debt. In just seven years, between 2009 and 2016, this debt tripled: from €96 billion to €276 billion.

This burden mortgaged their investment capacity, triggered interest payments, and cut resources allocated to healthcare, education, and long-term care.

Today, the situation has changed. Since the pandemic, the government has historically increased regional transfers, and despite the fact that the financing model expired in 2014, regional debt has fallen by 1.5 percentage points of GDP since 2018.

The forgiveness of more than €83 billion is another step in the right direction, pursuing two objectives: allowing regional governments to regain the autonomy to finance themselves in the markets without state guarantees and reducing an interest bill that amounts to around €5 billion each year.

And yet, the PP says 'no'.

Take the case of Galicia: Alfonso Rueda rejects the State's assumption of more than 4 billion euros of Galician debt. With this write-off, Galicia would save nearly 200 million euros annually in interest. Money with which to strengthen primary care, reduce waiting lists, and improve fire prevention. But the Galician People's Party prefers to put partisan confrontation before the real interests of the citizens. This is unacceptable.

It's worth clarifying: this isn't about Catalonia. The region that benefits most from the debt reduction in absolute terms is Andalusia. In terms of debt per capita, the Valencian Community and other historically underfunded regions stand out. In percentage terms, the Canary Islands have seen the greatest reduction. This is a fair, transparent, and equitable distribution.

Of course, debt relief, while an important step forward, is not enough. A more ambitious restructuring plan is urgently needed: extending deadlines, reducing financial costs, and freeing up resources for what matters. And, above all, it is urgent to finally unblock the reform of the regional financing system, which has been delayed for more than ten years. We need to guarantee financial sufficiency, correct imbalances, and ensure that all communities can sustain strong public services.

Politics must be territorial justice, cooperation and well-being for the majority

Of course, it would not be acceptable for this relief to be a tool to maintain regressive fiscal policies. We cannot allow some PP governments to allocate freed-up resources to lower taxes on large fortunes or eliminate wealth taxes. Solidarity cannot become a privilege.

In short, the apparent paradox of the PP—rejecting relief that benefits everyone—can only be understood in light of history: the same PP that created the burden of regional debt is now resisting a solution that corrects its own mistakes. Out of sheer political calculation, it prefers confrontation, even if its territories and citizens pay. In the face of this, the coalition government demonstrates, once again, that politics must be about territorial justice, cooperation, and well-being for the majority.