The Advisory Council of the President agrees on a common position ahead of the Fiscal and Financial Policy Council on July 29, with the REF and IGTE resources excluded from the system.
The Government of the Canary Islands, along with trade unions and business leaders, has established a common stance on Monday regarding the reform of the regional financing system. The agreement, reached in the Advisory Council of the President, sets three red lines: the Economic and Fiscal Regime (REF) must be excluded from the new system, the resources from the old General Tax on Business Traffic (IGTE) will also remain aside, and efforts will be made to improve the position of the Canary Islands to obtain more resources and stability.
The Canary Islands president, Fernando Clavijo, highlighted the unity achieved on strategic issues. “On strategic and decisive matters for the Canary Islands, the Government establishes an institutional position with a broad perspective alongside trade unions and employer associations,” he stated. The negotiation is entering its final stretch ahead of the Fiscal and Financial Policy Council (CPFF) on July 29.
The REF, an unrenounceable red line
Clavijo emphasized that the REF is not additional funding, but an instrument that compensates for the extra costs of remoteness, insularity, and ultra-peripheral status. “The REF must be outside the regional financing system,” he asserted. This is the first of the three demands agreed upon by the Advisory Council.
For his part, Vice President Manuel Domínguez stressed the need to clarify doubts regarding the treatment of the IGTE. This tax, which has funded the Canary Development Fund (FDCAN) over the last decade, must be preserved outside the system to ensure investments across all islands with criteria of territorial cohesion.
One billion additional on the table
Clavijo revealed that work is underway on a scenario of around 1 billion euros additional: 600 million directly linked to the financing system and over 400 million through a compensation fund. The aim is to improve that figure to 1.1 billion and for most of it to be integrated into the system in a stable manner.
The president explained that the goal is to reduce the weight of funds conditioned on future decisions by the State. “We want as much as possible to come out of the compensation system to the financing system,” he indicated. If this is not achieved, the Canary Islands will advocate that those resources be “protected” and available for free use.
Unity of government, trade unions, and businesses
Vice President Domínguez highlighted the unity achieved against “any partisan position.” The General Secretary of CCOO Canarias, Vanesa Frahija, called for “broad-mindedness from all parties” and argued that the Canary Islands cannot forfeit resources to improve the lives of citizens.
The General Secretary of UGT Canarias, Manuel Navarro, supported that “the Government of the Canary Islands and the Canary Islands have a single voice” and that the REF should be excluded from the negotiations. “The Canary Islands cannot be left out of new financing,” he stated. The president of the Canary Confederation of Entrepreneurs, Pedro Ortega, celebrated the consensus achieved in the Advisory Council.
The common position presents itself as a united front ahead of the CPFF on July 29, where the distribution of resources will be discussed. For the Canary reader, this represents a defense of the islands' interests at a crucial time for the financing of public services such as healthcare, education, and dependency.
You may also like
