Madrid also claims more money from the State: it quantifies a debt of 12,367 million
The Ayuso government ignores the benefits of the capital effect and maintains tax cuts despite the "suffocation" it denounces from the Spanish government
MadridThe Community of Madrid "is doing very well" and claims to be "the economic engine of Spain". However, according to Isabel Díaz Ayuso's government, this positive scenario occurs "despite" Pedro Sánchez's executive. Sources from the Madrid Ministry of Economy and Finance denounce "the asphyxiation" to which, in their opinion, the State has subjected them. Since 2019, when Ayuso took the reins of the regional government, the "consolidated debt" of the Spanish government with Madrid already amounts to 12,367 million euros, according to the calculation of Ayuso's team. "Mr. Sánchez's government is holding hostage the money of the people of Madrid that goes to issues as important as healthcare, dependency, or education," says the counselor Rocío Albert, in charge of Madrid's economic affairs, in statements to the press.
"the asphyxiation" to which, in her opinion, the State has subjected themwidens the fiscal gap with other autonomous communities.
And it is that when making these criticisms, the Community of Madrid does not take into account that it benefits from the capital effect.
Where does the figure come from?
A third of this debt accumulated in the last seven years corresponds to the design of the regional financing system. It is a complaint filed by the Community of Madrid since before Ayuso's government against the cap on the regional financing competitiveness fund, which, from the outset, the regional government considers to have been established specifically to harm them. This fund aims to compensate regions with higher income to whom the system assigns lower per capita financing than the average or below their fiscal capacity. This includes Catalonia, the Valencian Community, and also Madrid. However, the fact that a cap was placed on this compensation has meant that, between 2019 and 2023 alone, the regional government estimates it has failed to receive 4,513 million. This, of course, without taking into account the capital city effect again. Also added to the list of grievances is an "underfunding of European recovery and resilience funds," which amounts to 993 million.
Furthermore, the Madrid executive claims 2,668 million for the "non-compliance with the dependency law" by the State, as well as 2,785 in pending investments (1,580 corresponding to the third cycle of the Tajo hydrological plan and 1,200 for pending works in three wastewater treatment plants), 417 million for the regional transport consortium, 149 in healthcare, 61 in justice, and 10 in education. Another claim against the State, which amounts to 765 million, is due to the fact that in this year 2026, advances – the resources that common regime autonomous communities receive in advance – have not been updated. Between January and March, it is 129 million less per month, which rises to 376 from April onwards. Sources from the Ministry of Finance retort that the PP voted against the decree that updated them in Congress, to which the popular party replies that the problem is that it mixed it with social shield measures with which they disagreed.
Political battle
This latest issue affects all autonomous communities. Others governed by the PP have also criticized it, as has the PP's deputy secretary of finance, Juan Bravo, in the first interpellation in Congress to the new Minister of Finance, Arcadi España, about a month ago. The Community of Madrid frames the claim of 12,367 million in a total amendment to Sánchez's way of governing with discursive elements coinciding with Génova, such as the denunciation of the effects of not approving new state budgets since 2023. "It has very clear consequences," argues the Madrid councilor with reference to advances — an issue she has already requested by letter from España — and the need it generates for them to seek other short-term financing routes.
The Community of Madrid also denounces a systematic interference in its autonomy with the application of "the imperative" by the Spanish government of a "'I decide, you pay'" with "electoralist" or "improvised" measures that unbalance their budget. From the ministry they give as an example that they were not consulted beforehand about tax reductions due to the war in Iran, which will mean 206 million euros less in revenue for the Community of Madrid, or the salary increase for civil servants. "They give us everything closed and packaged. We cannot become the ATM of the Spanish government. You cannot govern without a budget," the same sources conclude.