Spanish government to send transfer proposals to Basque Country amid autonomous financing talks

The Basque regional government, led by Lehendakari Iñigo Pradales, contacted Prime Minister Pedro Sánchez to break a stalemate over a Social Security transfer package. After weeks without a written response from Madrid, the State announced it will send its proposals on Friday, though officials caution the substantive position may remain unchanged.

In the Valencian Community, regional authorities criticized the Spanish government's draft reform of the autonomous financing system, saying it would keep the region below the national average and fail to ensure equity. Finance Minister Arcadi España has scheduled a meeting with autonomous leaders on 29 July, and Valencian officials are pressing for a transitional equalisation fund, debt relief, and a financing criterion based on adjusted population. "Hemos defendido que la población es el elemento esencial de necesidad de gasto," said Valencian finance secretary Eusebio Monzó.

Both regions stress the need for written guarantees and clearer funding mechanisms as negotiations continue.