Santa Cruz de Tenerife, 17 Mar. (Europa Press) –
The Finance Minister of the Government of the Canary Islands, Matilde Asan, cautioned on Monday that the debt forgiveness model proposed by the central government is a “precursor” to a reform of the regional funding system that will factor in the REF (economic and fiscal regime).
Speaking at a press conference to discuss the decisions made by the Governing Council, she emphasised that the notion that the Canary Islands is not being dismantled is underscored by a constraint of 50%, which has been imposed without justification, despite the fact the archipelago “requires funds to sustain essential services.”
“We do not know the origin of the 50%, but it aligns with the REF resources,” she stated, asserting that the Canary Islands would no longer be viewed as an unrecognised region. “We are abruptly stripped of 1.7 billion,” she noted, while questioning why the Canary Islands, as the least indebted community, is the only one to face such restrictions.
Asan clarified that the REF “is not supplementary funding” but instead “serves to address structural disparities,” advocating for a “heightened awareness” among institutions and Canarian society, warning that councils and municipalities would be “significantly impacted.”
Consequently, in light of a potential reform of the system, she expressed that the Canary Islands do not wish to revert to the situation of 2009, when REF resources were integrated but later disconnected in 2017, with consequences stretching back to 2015. “Heaven forbid I remain as I am,” she quipped.
The Minister opposed the forgiveness model, describing it as reduced to “accounting notations” because “the debt is autonomous and becomes a burden for all Spaniards,” and even with a reduction in interest rates, “it could not be allocated to any social policy or economic revitalisation, but merely to serve and repay debt.”
She stressed that the Canary Islands are “negatively impacted,” in addition to the fact that the resolution of the Canarian Parliament is disregarded, which supported a proposal championed by NC-BC, stating that the Statute of Autonomy indicates that the REF cannot be encompassed in the regional funding.
Asan called for an adjustment to the expenditure rule so that the economic cycle’s prosperity is not restricted, allowing resources to be allocated towards social services and support for productive sectors. “It is overwhelming,” she admitted.
Regarding the funds from the recovery and resilience (MRR) mechanism, she acknowledged that the utilisation rate is “low” as the communities are not “accustomed” to managing such resources, which are “very centralised” and defined in sectoral conferences.
In this vein, she stated that “challenges exist” across all communities to such an extent that the central government has requested extensions to avoid returning funds, and a working commission has been established.
“We do not wish to return funds; we want the sectoral approach to adapt to the needs of the Canary Islands,” she elaborated.
