The regional government expresses regret over the alteration in the “rules of engagement” and acknowledges that 450 million Euros of the regional budget are now “in limbo”
SANTA CRUZ DE TENERIFE, 14th March (EUROPA PRESS) –
Alfonso Cabello, the spokesperson for the Government of the Canary Islands, voiced on Thursday that the extension of the General State Budgets (PGE) mandated by the central Government introduces a climate of “considerable uncertainty” as “many previously secured items are now in question.
Speaking to reporters, he did not conceal his “amazement” at President Pedro Sánchez’s decision as it may impact the day-to-day operations of the autonomous community, specifically affecting aspects such as the 60% income tax rebate for the island of La Palma or the 280 million Euros of prepayments pending resolution based on the spending rule.
He also highlighted that the most disconcerting aspect relates to prepayments from previous years that might necessitate a potential adjustment of the existing regional budget by up to 450 million Euros that are now “in doubt”, prompting ministries to initiate a “downward revision” of these figures.
Cabello indicated there are numerous apprehensions regarding this budgetary shift, which is why they have already reached out to the Ministry of Finance to “clarify all uncertainties.”
In this context, he mentioned that actions taken this year will likely require enforcement through decree law or “alternate methods”, while also stating that he does not believe the ‘Canarian agenda’ is under threat as a substantial portion of it “is being honoured”, including the 100% transport subsidy, the 75% mobility discount for residents, the committed 100 million Euros for La Palma’s reconstruction, and other provisions.
“These were part of the ‘Canarian agenda’, already included in the decree issued on 27th December outlining the budget extension for the initial months of the year,” he emphasized.
He added that now it is a matter of determining “which mechanisms will be put in place” to address each of these issues uniquely, necessitating an “additional endeavour” in devising solutions for each situation.
Cabello mentioned that State allocations have risen to over 90%, compared to barely surpassing 30% in the summer; hence, a detailed review is required to explore solutions “on a case-by-case basis.”
Regarding investments, he stated that they are “the most ambiguous” as “they are not easily adaptable”, hence a legal assessment is underway to assess “potential avenues” for their implementation.
Cabello expressed his regret that “the rules of engagement have been altered by Pedro Sánchez” and all negotiations now need to be “restarted.”
