Balearic Islands government disputes new financing system report

The Government of the Balearic Islands has rejected an expert report regarding the new regional financing system approved by the Council of Fiscal and Financial Policy. The report, associated with Fedea director Ángel De la Fuente, suggests the Balearic Islands will be the most benefited community under the new system.

A spokesperson for the Vice-Presidency argued that the report confuses fiscal capacity with fiscal effort. The government maintains that the region already demonstrates significant fiscal effort through Property Transfer Tax rates that reach up to 13%.

In contrast, the PSIB (Socialist Party) has embraced the Fedea report, using it to urge President Marga Prohens to support the new system. The PSIB announced a series of meetings with economic agents and civil society to gather input for the parliamentary process, led by Rosario Sánchez.