Canary Islands government faces criticism over debt and financing

The Canary Islands government and its supporting parties, Coalición Canaria (CC) and Partido Popular (PP), are facing criticism regarding their handling of regional debt relief and the new Autonomous Financing System.

Regarding debt, the Canary Islands Ministry of Finance initially requested approximately 10.95 billion euros in January 2024, which would have covered the entire 6.27 billion euro debt and included additional funds. By September 2025, this request was lowered to 4.968 billion euros, representing 76.2% of the debt. This stands in contrast to the Spanish ministry's proposal to forgive 50% of the debt, amounting to 3.259 billion euros. While Nueva Canarias advocated for a debt reduction based on adjusted population, CC and the regional government shifted their criteria to support the 50% forgiveness project.

Additionally, the Clavijo administration rejected the new Autonomous Financing System, claiming it disproportionately benefits Catalonia, despite arguments that such claims lack data.