Fiscal council delayed to Sept 4, giving PP regions five weeks to weigh 20.975 billion euro funding reform

Why the vote was pushed back

The Spanish Ministry of Finance delayed the Council for Fiscal and Financial Policy (CPFF) from Wednesday, July 29, to Friday, September 4, after the 11 autonomous communities governed by the Partido Popular (PP), together with Ceuta and Melilla, sent a letter requesting more time. The PP councils argued that a reform "pactada con una sola parte y a espaldas de todas las demás no puede pretender aprobarse ahora de forma apresurada, con un calendario que impide siquiera su examen" (agreed with a single party and behind the back of everyone else cannot be rushed through on a timeline that makes scrutiny impossible). They also cited a wave of wildfires that prompted an emergency declaration as a reason not to meet. Finance Minister Arcadi España said the date change reflects the government's goodwill and expressed hope that PP regions would now put citizens' interests ahead of party headquarters' dictates.

Catalonia's fiscal arithmetic

For Salvador Illa's government in Catalonia, the new financing model is a cornerstone of legislative stability. Economy and Finance Minister Alícia Romero stated the reform would inject 4,686 million euros annually into Catalan accounts, enabling the most expansive budgets in the region's history with spending rising more than 10% next year. She appealed to PP councillors' "responsibility" not to delay parliamentary passage, insisting the model must be approved in 2026 to take effect in 2027. Romero also endorsed Arcadi España's decision to grant a five-week margin: "Piden más tiempo aunque no fueron a las reuniones bilaterales con Hacienda. Aun así, respaldamos que se lo den para que no puedan decir que no lo tuvieron" (They ask for more time even though they didn't attend the bilateral meetings with the Finance Ministry. Even so, we support giving it to them so they cannot say they didn't have it). She added that the PP's own financing model remains unknown.

Party lines and the ERC push

The delay drew sharp criticism from ERC president Oriol Junqueras, who argued the Finance Ministry does not need any extra support because its own vote suffices to pass the model in the CPFF. He described the current system, dating from 2009 and expired since late 2013, as "un desastre" (a disaster) that is deeply unbalanced, and accused the PP of harming patients, students, and social-service users by blocking reform. Junqueras noted the contradiction that the Canary Islands government, which includes the PP, would back the model while PSOE-run Castilla-La Mancha and Asturias remain opposed. ERC's statement called the postponement a fresh setback for an "imprescindible" (essential) reform and urged the government to convene the CPFF as soon as possible so the new model can be approved before the end of the year. The party also warned that a congressional vote "no será fácil" (will not be easy), given the range of parties whose support is needed.

“Cada mes que se retrasa esta reforma es un mes más de asfixia financiera.”

The Canary Islands factor and the road to Congress

The PP regions' request for a delay came just after the Canary Islands announced it would vote in favour. The Finance Ministry found it "sorprendente" (surprising) that some communities now sought to postpone a meeting publicised at the start of the month. With Catalonia already committed to backing the proposal and the Canary Islands joining, the government has the CPFF votes it needs. Approval in the Council does not guarantee passage in the Congress of Deputies, however. In addition to expected opposition from the PP and Vox, Junts per Catalunya considers the reform insufficient for Catalonia because it does not include a fiscal arrangement similar to the Basque Country's cupo system.

What happens next

Romero said any modifications would need to be discussed with all parties but expressed doubt that substantive changes would materialise: "Veremos dónde nos lleva esta posible negociación" (We'll see where this possible negotiation takes us). From Hanoi, during an official trip, Catalan president Salvador Illa challenged the PP to present a viable alternative, accusing the party of "making castles in the air." The September 4 CPFF session will test whether the five-week window yields any new proposals or simply confirms the existing alignment, after which the reform moves to a fragmented Congress where its fate remains uncertain.

Catalonia4,686

Valencian Community3,600

All regions (total)20,975

Catalonia

4686 million €

Valencian Community

3600 million €

All regions (total)

20975 million €

Data from the article text