Spain delays approval of new autonomous financing model

The Spanish government’s plan to approve a new model for financing autonomous regions in July has been postponed until after the summer break. Finance Minister Arcadi España announced that the Council of Fiscal Policy and Finance (CPFF) will meet on 29 July, pushing the Council of Ministers’ vote on the proposal to a later date. The draft, which promises an additional €21 billion for the regions, will be sent to all autonomous communities for comment before a technical committee meets on 14 July. Opposition parties, particularly the centre‑right PP and the Catalan Junts, have rejected the model, accusing the government of a unilateral pact with ERC and warning that approval would be impossible without Catalonia’s support. The delay shortens the window for the reform to be enacted before the 2027 budget takes effect on 1 January 2027 and adds uncertainty ahead of municipal and regional elections in May. The government maintains that the reform is essential for fiscal stability and aims to reach a compromise before the next parliamentary session.