The PSOE calls for a clear definition of Canarias’ position in the reform of the autonomous financing system, urging a serious approach to fiscal resources and shared responsibility, amid a debate “debased by falsehoods.”
On Tuesday [9], the PSOE’s parliamentary finance spokesman, Manuel Hernández, emphasised in a plenary session of the regional chamber the necessity for Canarias to define a “clear and ambitious” stance regarding the long overdue reform of the autonomous financing system, which has been pending for over a decade. He urged the Canary Islands Government not to “punish” the citizens of the islands and to accept the partial debt forgiveness proposal put forward by the Spanish Government, which would make Canarias the most favoured community in the entire state.
During his address, Hernández lamented that much of the political discourse surrounding autonomous financing in Canarias “has been centred on falsehoods and the spread of myths,” particularly from the PP and Vox, instead of seriously discussing what model the archipelago actually needs.
“After listening to some of your lordships, I wonder what proposal Canarias will defend in the potential reform of the autonomous financing system, as little has been said about what is truly important: whether we want more resources, new mechanisms for inter-territorial solidarity, or to strengthen our Tax Agency,” he stated.
The socialist deputy accused the Canary Government of “argumentative poverty” for rejecting the contents of the agreement reached between the State and the Generalitat of Catalonia, while opting instead to “invent hypothetical scenarios,” ultimately reducing the discussion to debt forgiveness. “They have ended up discussing debt write-offs because their arguments against it were falling apart, and they did so with childish excuses or outright nonsense,” he criticised.
Hernández reminded attendees that the partial debt forgiveness measure arises from the need to address the consequences of the financial crisis caused by the “ultra-liberal” policies of the Popular Party and the poor management of many communities governed by that party. “During that crisis, communities were left to fend for themselves by the central PP government. Where were you, Madam Councillor, when the Autonomous Liquidity Fund was established that turned the people of Canarias into creditors of other territories?” he queried.
In contrast to this attitude, the Spanish Government led by the PSOE, Hernández explained, is now responsibly tackling the system’s review and proposing a debt forgiveness that is “fair, logical, and reasonable,” placing Canarias in a privileged position.
In this vein, he noted that this Spanish Government proposal amounts to €3.259 billion, which represents 50% of its debt—double the national average—as well as a reduction that does not factor in the revenue from the Economic and Fiscal Regime (REF), thereby dismantling one of the opposition’s arguments.
He also highlighted that, in terms of GDP, the write-off positions Canarias at 6%, aligning with the national average, and that, in terms of tax capacity, the debt per adjusted inhabitant in Canarias would reduce by €672.89, making it the fourth most benefitted autonomous community.
Greater Spending Leeway
The socialist deputy underscored that the measure employs “coherent” criteria, similar to those used in the distribution of COVID funds, which also particularly benefited the islands. He reminded everyone that 75% of the forgiveness is determined based on adjusted population, reflecting that all communities experienced a drop in income, even though not all had the same economic capacity to manage it.
“The forgiveness not only improves Canarias’ financial position, but also grants a greater margin for spending in relation to spending rules, allowing us to strengthen our public services,” Hernández reiterated.
Hernández posed two clear questions: “Does Canarias emerge in a better financial position after the write-off? Yes, without any doubt. And as this is a voluntary measure, will Canarias accept this partial debt forgiveness or punish the islands by rejecting it? That answer must come from the councillor, although we have already seen that even President Clavijo is starting to backtrack.”
“Cries” from the Popular Party
He also urged the Canary Government not to be swayed “by the cries of the PP” and called on the finance councillor not to walk away from negotiation tables when representing all the people of Canarias, especially when the measure is clearly positive for the islands.
“Once again,” he concluded, “it is not coincidental that the Socialist Party proposes measures benefiting Canarias. This has always been the case, and it is no different now.”
