Montero announces a reduction of 83.252 million of the debt that the CCAA maintains with the FLA

The Government proposes a debt relief mechanism in which it undertakes to forgive up to 83,252 million euros of the debt that the Autonomous Communities have with the State through the Autonomous Liquidity Fund (FLA). The document proposes a debt relief of 18,791 million for Andalusia, 17,104 million for Catalonia or 11,210 million for the Valencian Community. The proposal establishes three phases that explain the methodology. Firstly, it calculates the amount through a differential between the volume of liabilities accumulated by the territories in the period covering 31 December 2009 and 2013; and that recorded between the last days of 2019 and 2023. "We calculate that the Autonomous Communities had to go into debt of around 80,310 million euros, as a consequence of the lack of support granted by the Government of Mariano Rajoy during the previous financial crisis," says the Treasury. The proposal will be debated on Wednesday by the Council of Fiscal and Financial Policy (CPFF) and will have to be voted on in the Congress of Deputies.

In addition, Montero is taking advantage of the mechanism to correct the underfunding that four regions suffer as a consequence of the current system of regional financing. Andalusia, Valencia, Castilla-La Mancha and Murcia will be able to access an additional debt forgiveness of 19.3%. In addition, the Government identifies Valencia as the autonomous community with the highest volume of debt per inhabitant, of 2,384 euros. Through this limit, the Treasury proposes to increase the forgiveness to reach this same amount for the rest of the underfunded regions. "For the autonomous communities that have been below the average in financing per inhabitant, we are raising their forgiveness to the amount that represents the autonomous community that reaches the highest level: Valencia," explained Montero.

Finally, the vice president will reward those autonomous governments that have not reduced personal income tax. In other words, the autonomous communities that have exercised their authority over income tax "above average" will receive an additional 10% reduction. " We benefit those who have made a fiscal effort ," said Montero, who revealed the content of the mechanism shortly after the leader of ERC revealed the agreement signed with the Executive on the amount of the reduction that will benefit Catalonia. "Those who are contributing to reducing the debt that they are accumulating, we give them an added push," she said. The Treasury limits this criterion to personal income tax, and removes from this equation other taxes, which have been reduced by the popular barons, such as wealth tax or inheritance and donations.

"This is a measure that benefits all, I repeat, all the autonomous communities," the head of the Treasury has repeatedly insisted, noting that regions without debt to the FLA, such as Madrid, will also benefit from the law. "With less debt there is less interest to pay, the forgiveness allows them to reduce their debt ratios and clean up their public accounts, a better credit rating, more financial autonomy..." she has assured before pointing out that "more financial autonomy means more political autonomy."

Once approved, the mechanism will be voluntary. That is, only the autonomous communities that want to will be included in the system. Despite this, the Popular Party has already announced its rejection of the measure. "It is not that Sánchez forgives the debt to the independentists, but that now we will pay it together. That is why they have raised your taxes 97 times. It is going to be true that it is not about the Treasury collecting more... but about Sánchez continuing to pay the rent of La Moncloa," said the number two of the Popular Party, Cuca Gamarra, through her profile on the social network X .