Catalonia to maintain common financing regime under new funding model

Catalonia will remain under the common financing regime rather than adopting a unique economic concert or singular funding model. Despite opposition from most autonomous communities, a new system has been approved that includes specific elements negotiated between the Spanish Ministry of Finance, the Catalan Department of Economy, and Esquerra Republicana.

The new model is designed to provide more resources to the region, with an estimated extra 4,686 million euros for Catalonia by 2027. This makes Catalonia the second community to receive the largest absolute increase in funds, following Andalusia. The system maintains Catalonia's ranking as the third largest contributor to the system and the third largest recipient based on adjusted population.

Historically, the debate over an economic concert similar to the Basque Country's has been a central point of tension. While former President Jordi Pujol claimed the Spanish government denied such a request to avoid economic imbalance, other accounts suggest the Generalitat declined similar offers during the transition. The current agreement, while preserving the existing architecture, introduces concepts like ordinality to provide arguments for bilateralism in relations with the central government.