Canarias joins Cataluña as the only region backing Spain's financing reform
Canarias has become, alongside Cataluña, the only one of Spain's 17 autonomous communities to back the central government's proposed reform of the regional financing system. Every other region rejects it. That was reported by Canarias7 and moncloa.com on 18 August 2026. The reform was submitted to the regions in July 2026 and would take effect on 1 January 2027, redistributing resources among the communities.
Photo: Concepcion AMAT ORTA…, CC BY 3.0 (Symbolbild).
Canarias signed a bilateral agreement with the State on 27 July 2026. The move is politically delicate: the Canarias government is led by Coalición Canaria (CC) with PP support, yet it is backing a reform from the Sánchez government that the PP opposes at the national level.
What was agreed
According to Canarias7 and moncloa.com, Canarias joined the State's reform as the only non-Catalan region to do so. That leaves just two communities — Canarias and Cataluña — supporting the proposal, while the other fifteen reject it, including some regions governed by the PSOE.
The model would come into force on 1 January 2027 if it clears the remaining stages. It reorders how resources are shared among the autonomous communities, a process that regularly sets the regions and the State against one another.
Why Canarias signed up
The Canarias government defends its decision on the grounds of extra funding and the protection of Canary interests. According to late-July press reports (que.es, 28 July 2026), Canarias reportedly secured around €1.337 billion more per year by joining the reform. That figure comes from those July reports and should not be read as a Canarias7 number.
Beyond the money, the government points to the archipelago's specificity, including the Canary economic and fiscal regime known as the REF (Régimen Económico y Fiscal). In its view, the agreement safeguards Canarias' island status while bringing noticeably more funding to the islands.
Why Cataluña benefits — and the criticism
Ángel de la Fuente, director of the Fedea think tank (Fundación de Estudios de Economía Aplicada), sees in the reform two mechanisms he calls "más que cuestionables" ("more than questionable") that favour Cataluña. He warns that the draft barely alters the initial proposal, worsens "moral hazard" among the regions and strains State finances, and he calls for a broader consensus.
Critics also point to the isolation of Canarias: the fact that fifteen of seventeen regions reject the reform is, in their reading, a sign that it is a deal tailored to Cataluña. The Canarias government counters that it negotiated independently, in the interests of the archipelago.
Political tensions
On the State's side, the government's representative, Arcadi España (Hacienda), led the talks; for Canarias, President Fernando Clavijo signed. Ángel Víctor Torres also attended the meeting, according to the sources.
The friction lies in party logic: the CC government of Canarias holds office with PP backing, yet it supports a reform from Pedro Sánchez's central government that the national PP firmly opposes. That configuration makes the Canary move politically sensitive for all sides.
Outlook
The decisive vote in the Consejo de Política Fiscal y Financiera (CPFF) is expected on 4 September and, according to the sources, is likely to fail. The backing of only two regions is not expected to suffice for a majority in that body.
Even if the reform cleared that hurdle, passage in the Congreso faces opposition from the PP, Vox and Junts. Whether the model can enter into force on 1 January 2027 therefore remains open.
The REF (Régimen Económico y Fiscal) is the Canary Islands' special economic and fiscal regime, which the Canarias government invokes.
The process is contested and not yet settled: the CPFF vote on 4 September may fail, and the positions of the government and its critics diverge sharply.
Key facts
- Canarias is, with Cataluña, the only one of the 17 regions backing the reform (Canarias7, moncloa.com, 18 Aug 2026)
- Bilateral agreement signed on 27 July 2026; intended to take effect on 1 January 2027
- Around €1.337 billion more per year for Canarias, according to July reports (que.es, 28 Jul 2026)
- Ángel de la Fuente (Fedea): two "más que cuestionables" mechanisms favouring Cataluña, warning of "moral hazard"
- Negotiators: Fernando Clavijo (president of Canarias), Arcadi España (Hacienda); Ángel Víctor Torres attended
- CPFF vote expected 4 September; in the Congreso, opposition from PP, Vox and Junts
FAQ
- What is the reform about?
- Redistributing resources among Spain's 17 autonomous communities; it was submitted in July 2026 and would take effect on 1 January 2027.
- Why is Canarias almost alone?
- According to Canarias7 and moncloa.com, only Canarias and Cataluña back the reform; the other fifteen regions reject it.
- What does Canarias say it gains?
- Extra funding — reportedly around €1.337 billion a year, per July reports — plus the protection of Canary interests and the REF, according to the Canarias government.
- What does Fedea criticise?
- Ángel de la Fuente cites two "más que cuestionables" mechanisms favouring Cataluña, warns of "moral hazard" and pressure on State finances, and calls for a broader consensus.
- What happens next?
- The CPFF vote on 4 September is likely to fail; in the Congreso, opposition is expected from the PP, Vox and Junts.