Madrid 1 Mar. (Europa Press) –
The head of the Foundation for Applied Economic Studies (Fedea), Ángel de la Fuente, has devised a “fairer” proposal than the farm strategy for addressing a portion of the debt belonging to the Autonomous Communities, with a distribution that would support the underfunded regions of the Valencian Community, Andalusia and Murcia.
In the midst of discussions regarding debt relief, the alternative allocation suggested by the economic think tank first compensates for the accumulated underfunding between 2010 and 2022 and subsequently allocates the remaining resources proportionally according to the adjusted population.
The methodology proposed by Montero for cancelling up to 83,000 million euros of debt comprises three phases, linked to the indebtedness when comparing the 2008 crisis with the pandemic years, alongside the underfunding of the communities. The Ministry of Finance is also considering communities that have exercised regulatory powers over personal income tax from 2010 to 2022.
According to this methodology from the Treasury, Andalusia and Catalonia would emerge as the major beneficiaries, with the State covering 18,791 million euros for the former and 17,104 million euros for the latter, collectively accounting for over 43% of the total between the two.
An alternative allocation
On the other hand, Fedea’s alternative allocation based on underfunding and population density would favour Andalusia, the Valencian Community and Murcia, which would see their debt forgiveness increase.
Specifically, Andalusia would receive the highest debt annulment, amounting to 22,176 million euros, followed by the Valencian Community with 18,444 million euros. Catalonia would come third in this ranking, benefiting from 9,139 million euros, a stark difference from the 17,104 million euros proposed under the farm strategy.
Under Fedea’s proposal, following these three regions would be Madrid (7,708 million euros); Murcia (5,069 million euros); Castilla-La Mancha (4,289 million euros); Galicia (3,575 million euros); Castilla y León (3,248 million euros); the Canary Islands (2,655 million euros); Aragon (1,722 million euros); Extremadura (1,392 million euros); the Balearic Islands (1,370 million euros); Asturias (1,344 million euros); Cantabria (721 million euros) and La Rioja (400 million euros).
The Treasury’s proposal
With respect to the Treasury’s plan, Andalusia and Catalonia would also be the leading Autonomous Communities to benefit, as the State would underwrite 18,791 million euros for the former and 17,104 million euros for the latter, together representing more than 43% of the total.
Following these regions, the Valencian Community would receive 11,210 million euros; the Community of Madrid would obtain 8,644 million euros; Castilla-La Mancha would get 4,927 million euros; Galicia 4,010 million euros; Castilla y León 3,643 million euros; Murcia 3,318 million euros; the Canary Islands 3,259 million euros; Aragon 2,124 million euros; the Balearic Islands 1,741 million euros; Extremadura 1,718 million euros; Cantabria 809 million euros and La Rioja 448 million euros.
Within this allocation, Euskadi and Navarra are not included as they are not part of the common regime system; however, they have also voiced their desire to benefit from the debt relief, proposing that they receive similar compensation via their regional frameworks.
