PSOE and Sumar agree on urgent strengthening of financing of the Valencian Community and other autonomies

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In the last July 23 election program PSOE It already included a commitment to promote the approval of a new regional financing system “within a year at most”, i.e. in 2024. Now the coalition agreement between PSOE and Sumar indicates “unless this reform takes place”, in General budgets of the state will be guaranteed to me Valencian general and to the rest underfunded autonomous communities“The provision of public services at the same level as the rest of the State”.

This formula provides a safeguard in case parliamentary fragmentation and competition with the PP prevent rapid reform of a model that is accumulating renewal. Almost 10 year delay since 2014. “We will promote a new regional financing model that corrects the inadequate financing of autonomous communities such as Valencia,” the second vice president and leader said. To addYolanda Díaz during the presentation of her newly signed legislative agreement with Pedro Sánchez.

From the Balearic Islands through Catalonia to Cantabria

The Valencian Community is the only community explicitly mentioned in the text of the legislative agreement. According to the latest data of the Ministry of Finance; Final solution of regional financing for 2021Communities receiving model-adjusted average funding of less than €2,764.94 per capita were: Balearic Islands (2.296,63 Euros), Canary Islands (2.388,17 Euro), Valencian Community (2.495.87 Euro), Murcia (2,627.45 Euros) and Andalusia (2,715.64 Euros).

CataloniaAt 2,769.62 euros per adjusted capita, barely 0.16% above the average, slightly below Castile la Mancha (2,787.93 Euros)

At the other end of the table, communities with the highest homogeneous financing of over €3,000 adjusted per capita are cantabria (3.533,64 Euro), rioja (3.272.52 Euros), Estremadura (3,093.42 Euros) and Aragon (3,036.04 Euros). being followed by them Castile and Leon (2,993.55), asturias (2,937.44), Madrid (2,887.71) and Galicia (2,863.02 Euros).

“Unfair tax competition” between autonomies

There are few references to regional financing reform in the coalition agreement between PSOE and Sumar. When talking about the new state tax on net assets exceeding three million euros – the so-called ‘Temporary solidarity tax on large fortunes‘- Sánchez and Díaz undertake to “assess” the consequences of this tax figure “with the aim of moving towards a new taxation of wealth within the framework of the regional financing model to end unfair tax competition between regions.”

General references

Moreover, references to the reform of the regional financing system in the text of the coalition agreement between PSOE and Sumar are quite general. “We will promote a new regional financing model that guarantees the necessary resources for citizens to benefit from quality public services. equality, solidarity, financial autonomy, financial shared responsibility, financial sufficiency and institutional loyalty “guaranteeing citizens equal access to public services and correcting the inadequate financing of certain autonomous communities” is vaguely stated in the text.

Equally general is the paragraph referring to reform. local financing: “In parallel with the Law on Rationalization and Sustainability of Local Government, we will reform and create a competence and financial framework to ensure local governance of local governments. solvency principle To ensure that municipalities provide quality public services. We will also confirm Local Government Law “An approach that strengthens local autonomy with defined powers of local institutions so that public policies can be developed with guarantees of quality and transparency.”

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