The Canary Islands, alongside Catalonia, have backed a new regional funding system, marking a significant shift from being among the least funded regions to surpassing the national average. This change elevates the islands’ funding from an initial 611 million euros to 1.337 billion euros.
A key feature of the new model is the establishment of an economic dynamism fund, which not only safeguards the islands’ unique characteristics but also aligns their funding above the national average. The Canary Islands’ government emphasizes the importance of this shift, moving from the bottom of the funding list to above average.
Another crucial aspect is the protection of the Economic and Fiscal Regime (REF). The agreement, for the first time, officially excludes the REF from the regional funding system, a longstanding demand from various regional governments.
Despite political tensions, the Canary Islands government supports the agreement, viewing it as beneficial for its citizens. However, they acknowledge that further improvements are needed and plan to propose additional changes during the parliamentary process.
The reform, supported only by the Canary Islands and Catalonia, faces widespread opposition but is crucial for the Canary Islands as it ensures that resources linked to the REF are excluded from the funding system, increasing the archipelago’s funds to 1.337 billion euros.
The central government aims for the new model to be implemented by January 1, 2027, pending approval in Congress. Critics argue that the reform stems from a political agreement and fails to uphold equality principles, with concerns about factors like aging and geography affecting population calculations.
