Regional funding

Montero challenges the PP: she offers the regions the option to forgo the money and keep the current model

The Ministry of Finance and the Generalitat are left alone defending the proposal in the Fiscal and Financial Policy Council

The Minister of Finance, María Jesús Montero, greeting the Minister of Economy of the Generalitat, Alícia Romero
14/01/2026
5 min

MadridMaría Jesús Montero has issued a challenge to the autonomous communities under the common regime, and therefore to the PP, which governs in almost all of them: if they do not wish to adopt the new regional financing model—should it be approved—they can remain with the current system. This is not a new idea, as voluntary participation is already provided for in the law. In fact, in 1996, when the PP and CiU agreed on the financing model in place at the time, some socialist-governed communities did not join. However, de factoThis would mean forgoing the additional funds they would receive under the model agreed upon by the three parties: ERC, the Catalan government, and the Spanish government. In Catalonia's case, this amounts to an additional 4.7 billion euros. "Absolutely nothing will be imposed here," Montero stated at a press conference following the Fiscal and Financial Policy Council (CPFF), adding that participation in the regional debt forgiveness, which is yet to be voted on in Congress, is also voluntary.

But the People's Party (PP) left Wednesday's meeting just as it had entered: railing against the proposed new model. A position that the Treasury is now addressing. "If the PP doesn't like the proposal, where is the alternative?" asked Finance Minister Montero, who asserted that it is "not legitimate" to criticize without having a plan B. The President of the Generalitat of Catalonia, Salvador Illa, also weighed in from Madrid: "What did you do when you were in power to resolve this issue?" he retorted. Coinciding with the Fiscal and Financial Policy Council (CPFF), Illa met with the leaders of the UGT and CCOO unions to boast about what he considers "the best [financing] model in history." The head of the Catalan government found better rapport with the unions than with Catalan employers: "Catalonia offers solutions, not controversies," he said. in reference to the clash with Foment del Treball.

Outrage in the PP

The males The Popular Party (PP) is expressing outrage over two specific issues. They believe that the Catalan government (Generalitat) stands to gain the most, although this is not the case in absolute terms (that would be Andalusia), nor in terms of population adjusted per capita (that would be Cantabria), nor when considering the percentage increase in resources compared to the current model (that would be Murcia), as Montero explained. The other issue that angers the PP is that the model was agreed upon between the Socialist Party (PSOE) and the leader of Esquerra Republicana, Oriol Junqueras.

"We were surprised that Oriol Junqueras didn't preside over the Fiscal and Financial Policy Council if he designed it," retorted the Madrid regional minister, Rocío Albert López-Ibor. Meanwhile, the regional ministers of Extremadura, Elena Manzano, and Murcia, Luis Alberto Marín, warned that they would fight the model legally. "The Montero model gives champagne and caviar to the separatists and the rest of Spaniards a pre-cooked set menu without dessert," asserted the Andalusian Minister of Economy and Finance, Carolina España. However, when asked whether or not they would adhere to the model (should it succeed), they males The Popular Party has avoided answering. They have simply stated that they will fight it in court or that it will not pass. An absolute majority in Congress is needed for it to be approved, and, for now, the PSOE and ERC are far from achieving it. The other complaint raised by the Popular Party councilors is that Montero has only given them the PowerPoint which she already presented last week and has not provided any further technical data to work with. In this regard, the minister has made it clear that they will not release any more figures and is leaving the creation of rankings, for now, to the "research centers."

The tone of the People's Party, therefore, does not suggest that any of its regional governments are open to joining the new model, although the Valencian Community and the Balearic Islands have viewed it with caution. In the case of the Balearic Islands, they even acknowledged having observed "interesting" things.

Internal disagreements

Montero believes that if the Popular Party hasn't put forward any concrete new model in writing, it's because they are unable to reach an internal agreement. This division, in any case, also affects the Socialists. Castilla-La Mancha, where the PSOE governs, has labeled the option of choosing between the current model and the new one as "blackmail." In contrast, Asturias, also governed by the Socialists, has reportedly aligned itself more with the Ministry, according to sources present at the meeting. As expected, the region that has most embraced the Treasury's position is Catalonia. The Catalan Minister of Economy, Alícia Romero, lamented that the males The PP members have also held closed-door "rallies" and haven't been allowed in to make concrete proposals. "They've talked a lot about Junqueras and the separatists," a Generalitat official said ironically as he left.

Montero rejects the main argument championed by the People's Party: the proposal for a new model is not tailored to Catalan separatism. "Mr. [Carles] Puigdemont's party has said it doesn't like the new model, just like the PP. If it were so good, they would have been boasting about it," she said. She also took the opportunity to dismantle, in her own way, the PP's criticisms: Montero argues that it is a solidarity-based model—reminding everyone that the wealthier regions will be net contributors to the system—and that it guarantees "sufficient resources" with the nearly €21 billion that the State will contribute (70% of which will go to the regions, especially those that are currently underfunded).

The Minister of Economy of the Community of Madrid, Rocío Albert López-Ibor, arriving at the Fiscal and Financial Policy Council.

Bilateral meetings

But the attitude of the PP-governed regions was no surprise. The PP leader himself, Alberto Núñez Feijóo, had already set the tone for tomorrow in an interview on Telecinco: "It's not a well-thought-out or organized system... It's a necessity for Sánchez to continue governing and for Salvador Illa to have a budget," he said.Andrea Zamorano reports. Feijóo has summoned the males This Sunday in Aragon, where elections will be held on February 8, the aim is to boast of a "common front" against Montero's proposal.

Montero, who now has two months to translate the flurry of figures into law, intends to meet bilaterally with the autonomous communities to delve deeper into the technical aspects of the model. In fact, the Finance Minister has shown herself open to making some changes, which could even please the partners in the plurinational majority who are currently rejecting the proposal. This is the case with Junts, which has already warned that it considers any system other than an economic agreement for Catalonia insufficient, something that the proposed model does not foresee: "There is no quota "For Catalonia, there is a reform of the common model," Montero acknowledged.

Despite the turmoil within the People's Party, no leader has completely ruled out these one-on-one meetings. They do, however, demand more information. Montero hopes to bring the proposal to the Council of Ministers. The Spanish government's future will be at stake when the proposal reaches Congress.

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