Catalan Government presents new funding model and accuses Madrid of 'fiscal dumping'

Minister Romero defends the paradigm shift in revenue management and demands opposition support in the Catalan Parliament.

Generic image of a parliamentary session or an economic presentation featuring documents and a microphone.
IA

Generic image of a parliamentary session or an economic presentation featuring documents and a microphone.

The Minister of Economy, Alícia Romero, presented the new financing model in the Parliament on Wednesday, defending the contribution of 4.686 billion EUR and requesting opposition support.

The Govern formally presented the new financing model, agreed upon with the central executive and ERC, before the Parliament's Economy commission. This proposal, if approved by the Congress, would inject 4.686 billion euros into the Generalitat's coffers. Minister Alícia Romero provided a technical defense, stressing that the current system has been expired for 12 years.

"It is a much fairer model that treats the autonomous communities as adults."

Alícia Romero · Minister of Economy and Finance
The new system implies a "paradigm shift" based on the "co-responsibility" of the autonomous communities in managing revenues. Communities would manage 55% of IRPF (up from 50%) and 56.5% of VAT (up from 50%). Romero reached out to the opposition, including Junts, offering to introduce "improvements" if it guarantees approval in the Congress.
The Minister warned that the current proposal is "an opportunity that we do not know if we will have a year from now," referring to the potential fall of the Sánchez Government. She also criticized Madrid, Andalusia, Murcia, and the Balearic Islands, accusing them of practicing "fiscal dumping" by lowering taxes for the rich while demanding more resources from the State.
To defend the model outside the Parliament, Romero will begin a 'tour' across Catalonia, starting on Thursday in Manresa (at the Fundació Althaia) and continuing on Friday in Girona. The goal is to explain the proposal's key points to institutional representatives and economic and social agents.