María 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.

A windfall of millions for the autonomous communities under the common regime. The Ministry of Finance has informed regional governments that next year they will receive record resources from the financing system, amounting to up to €157.731 billion (7% more than in 2025) in the form of advance payments. This figure is slightly higher than the one announced in the summer. Of this money, Catalonia will receive a record €30.207 billion, 6.9% more than in 2025, as reported by the Ministry of Finance this Monday, following the Fiscal and Financial Policy Council (CPFF). It is worth remembering that advance payments are the resources that the State transfers in advance to the autonomous communities and municipalities, depending on the administrations' tax revenue forecasts. These funds represent the bulk of the resources available to the regions for preparing their budgets and covering basic services, and are updated annually according to economic growth forecasts, but above all, tax revenue projections, which have performed well in recent years. To this amount must be added the positive settlement for 2024: €13.506 billion. This means that the central government anticipated lower tax revenue for the regions that year, but this did not materialize. Thus, the Treasury will transfer a total of €170.3 billion. Deficit target of 0.1%

However, the Treasury is not making any changes to the deficit target for the autonomous communities in 2026. The department headed by María Jesús Montero (PSOE) has confirmed that they will have a deficit target of 0.1% of GDP in 2026, 2027, and 2028. "That means a deficit for all three years," Montero said at a press conference. For Catalonia, this represents approximately €1 billion in additional spending leeway during this period, according to calculations by the Catalan government. Along with the deficit target, Montero also announced the debt target for the autonomous communities (set at 20% of GDP for 2026), as well as the spending rule limit, which for next year will rise to 3.5% (currently at 3.5%). The Minister of Economy and Finance, Alícia Romero, welcomed the upward revision of the spending rule limit, as it is a key element of the new European fiscal rules, although the Valencian government will still not comply with it. The three elements (deficit target, debt, and spending rule) constitute the path to stability.

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Between January and February of next year. This is the timeframe set by the First Vice President and Minister of Finance, María Jesús Montero, to present the new regional financing model. For the first time, Montero has committed to a specific date, doing so after a Fiscal and Financial Policy Council (CPFF) meeting in which she outlined the key features of the future system. This model is still being negotiated with the Republican Left of Catalonia (ERC) and the Catalan government (Generalitat). This is, in fact, the main reason why Montero postponed the CPFF meeting scheduled for this Monday.

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The Spanish government says it has given autonomous regions economic oxygen after the Fiscal and Financial Policy Council (FFPC) met on Wednesday. The Ministry of Finance has informed regions they will receive €112.2bn in advance funding for 2022, a 6.3% increase on the previous year. Of this amount, ARA has learnt, Catalonia will receive €21bn, an 6.8% increase on 2021.

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