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Listen to the article5 min, read by a synthetic voice

In brief

  • The Council originally scheduled for 29 July 2026 was postponed at the request of PP-governed regions, with Hacienda setting the new meeting for Friday 4 September 2026.

  • Alícia Romero confirmed the reform would inject an annual 4,686 million euros into Catalan finances, allowing for the most expansive budgets in the region's history.

  • The government's proposal would give autonomous communities an extra 20,975 million euros to strengthen the welfare state and improve public services, according to Hacienda.

  • Junts has indicated possible opposition because the model lacks a Basque-style cupo for Catalonia, joining expected PP and Vox votes against the reform in the lower chamber.

MadridBarcelona
Madrid, Barcelona, Hanoi · Spain, Vietnam
How it came to this
  1. 4 SeptRescheduled CPFF to vote on the new autonomous financing model.
  2. Late 2026Target for congressional approval so the model can take effect on 1 January 2027.
  3. 1 JanPlanned entry into force of the new financing system.

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.”

Oriol Junqueras, president of ERC

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.

Extra annual funding for selected regionsmillion €
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

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Sources and context

  • EL PAÍSon 28 Jul at 19:03El Govern y ERC apelan a no retrasar el calendario para que la nueva financiación entre en vigor en 2027
  • europa presson 28 Jul at 17:53Romero apela al diálogo y la responsabilidad del PP tras aplazarse...
  • europa presson 28 Jul at 17:45Junqueras (ERC) afirma que el Gobierno no necesita "ningún apoyo...
  • europa presson 28 Jul at 16:30ERC lamenta la suspensión del CPFF y pide que no se "aplace más" la...
Alícia Romero
Catalan Minister of Economy and Finance, who endorsed the September delay while urging PP regions not to obstruct the 2027 implementation.
Arcadi España
Spanish Minister of Finance, who postponed the CPFF to 4 September and described the move as reflecting government goodwill.
Oriol Junqueras
President of ERC, who called the current financing model a disaster and said the Finance Ministry already had enough votes to approve the reform.
Salvador Illa
President of the Generalitat of Catalonia, who from Hanoi challenged the PP to present a viable alternative instead of building castles in the air.

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First version on 28 Jul at 14:02, last change on 28 Jul at 19:44.

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Text generated by AI from the reports of the publishers listed and checked automatically, with no human editor. How Pollar is made

In this text

Why the vote was pushed backWhy the vote was pushed backCatalonia's fiscal arithmeticCatalonia's fiscal arithmeticParty lines and the ERC pushParty lines and the ERC pushThe Canary Islands factor and the road to CongressThe Canary Islands factor and the road to CongressWhat happens nextWhat happens next

Based on reports by

EL PAÍS, europa press, LaSexta, RTVE.es, LaVanguardia

List of sources

Government · Madrid, Barcelona, and Hanoi

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

The Spanish Finance Ministry postponed the Fiscal and Financial Policy Council from July 29 to September 4 at the request of PP-governed regions, while Catalonia and the Canary Islands are expected to back a reform that would inject an extra 20.975 billion euros into regional coffers.

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AI text based on reports by EL PAÍS, europa press, LaSexta and other publishers. Changed on 28 Jul at 19:44.

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