2025 budget: At an impasse over financing for Catalonia
2025 budget
Fecha: septiembre 2024
Desiderio Romero-Jordán
SEFO, Spanish and International Economic & Financial Outlook, V. 13 N.º5 (September 2024)
The probability of a second consecutive budget carryover in 2025 is high, with the main obstacle to approval constituted by the new financing framework under negotiation for the Catalan region. The new framework would give this region similar status to the accords in place in the Basque region and Navarre, which are outside of the so-called common regime that currently encompasses Spain’s 15 other ‘autonomous regions’. Catalonia’s exit from the common regime would leave the state with as much as 22 billion euros less for regional redistribution. As a result of the tense climate created by these negotiations, the government is having a hard time getting approval for the ceiling on non-financial spending, the first prerequisite for passing a budget for 2025.