Fedea proposes a temporary equalization fund for underfunded autonomies

No time to read?
Get a summary

Foundation for Applied Economics Research (Fedea) He presented a new report on the regional financing model, in which he proposed formulas for reform that he envisioned to be “complex” and long-term, and reaffirmed the difficulties this would entail for Castilla-La Mancha. , Valencian Community, Andalusia and Murcia. The organization, led by Ángel de la Fuente, insists that an agreement must be reached on a new model in the face of the “lack of transparency” and “high inequality” created by the current model.

However, given the anticipated political difficulties in reaching these agreements, he is determined to reach them. Apply “tweaks now” to help alleviate underlying issues“while waiting for the global agreement it will eliminate these autonomies and bring them closer to the average. So the “first thing” will be the activation of a temporary leveling fund paid for by the state, which will act as a patch on the underfunded autonomies, through which the remaining ones will be able to pay for health, education and social services It will help them reach the resource level.

victimized areas

According to their calculations, this fund needs to be equipped. 3.277 million would be distributed among four victim areas: Andalusia (1,409), Valencian Community (1,148 million), Murcia (405) and Castilla-La Mancha (315).

But this additional distribution will be enough to make them equal to average spending, and they will continue. 500 euros per person below other regions such as Cantabria. Compensation payments will continue until the reform and will be integrated into the new mechanism.

Fedea assumes that comprehensive reform of the system is too complex, which puts pressure on PSOE and PP. The two major parties need to agree in advance for the amendment to be “workable” and “peaceful” and for them to “stop throwing things at each other’s heads and make efforts to reach a reasonable agreement.” And in an apparent reference to PSOE’s negotiations with the independence movement, he states that he supports negotiations being conducted in joint forums rather than “bilateral”, given the risk of leading to “a la carte” reform. For the appointment of Pedro Sánchez, first and recently Approving decrees at the Congress of Deputies.

Data provided by Fedea. LEVANTE-EMT

Balancing fund for Fedea, “technical problems“, is the crux of the matter. This raises the need to increase the resources provided to the distribution system to facilitate possible reform. However, he argues that the increase in money should be financed through “increasing regional taxes and incentive problems that will arise from the new injection of state resources.” These extraordinary funds will then go through solidarity mechanisms to distribute resources according to the adjusted population.

Fedea offers to create Autonomous departments in transferred taxesLike VAT. These will be determined collectively by the autonomies and the returns will be “distributed in proportion to the adjusted population, so that status quo Among the simplification measures, it is also promised to review the system of withholding and account payments, that is, the payment times of the State, to indicate possible tax changes of the regional administrators.

He questions that the liquidation was carried out two years late because this dilutes financial movementsit is not transferred “directly” to the public accounts of that community.

No time to read?
Get a summary
Previous Article

Major farmers’ protest. The government must change the conditions of agricultural production. Tractors and machines on roads throughout Poland. SEE WHERE

Next Article

MUA replenishes its funds with a “Many Stories” exhibition