Canary Islands Government Opposes Debt Forgiveness and Calls for Equal Treatment in Financial Agreements

Pedro
By Pedro
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SANTA CRUZ DE TENERIFE, 2 Sep. (EUROPA PRESS) –

The President of the Canary Islands Government, Fernando Clavijo, expressed on Tuesday the rejection of his administration towards the cancellation of debt for autonomous communities. He announced plans to initiate a legal and political “battle” to prevent this from occurring.

“We cannot defend this, we cannot support it as the Government of the Canary Islands,” he stated after a meeting with parliamentary groups aimed at garnering support for a strategy that compels the Government to amend the distribution criteria.

Clavijo asserted that the debt cancellation should be “the same” for all Spaniards, following the adjusted population criteria to ensure all territories are treated “equally.”

“We are neither more nor less, because otherwise, the Canarians would be paying the debt of the Catalans,” he emphasised, insisting that the Government will not be “complicit” in “mortgaging the future” of those residing in the archipelago and exacerbating an already complex social situation.

However, the president remained cautious until he sees the final text of the agreement approved by the Council of Ministers, admitting that the Canary Islands is starting this process “on the right foot,” given that there is an “extensive majority” in the Assembly supporting an alternative debt cancellation model.

He stressed that the archipelago is the “only” autonomous community that has managed to decrease its debt in recent years, in stark contrast to others, such as Catalonia, where debt has increased by €17 billion in the past decade. “What a coincidence that this is precisely what they are aiming to cancel,” he added.

Clavijo explained that the Canary Islands will emerge “worse off” from the debt cancellation agreement and insisted that Canarians will “have to pay for a party” to which they were not invited, as successive regional governments have been “rigorous” in controlling public finances.

“Of course, we would have liked to have more money to support our welfare state, more resources for healthcare, education, universities, and social services, but we have been serious and rigorous,” he commented.

He made it clear that “debt cancellation is a euphemism,” as what occurs is merely a “transfer of ownership” to all Spaniards, introducing “discriminatory criteria,” as a cap is placed on the Canary Islands—meaning only half of the debt is cancelled, leaving around €1.7 billion outside the agreement.

He also warned that there is a “double harm” due to the “discounting of surplus” as well.

The president expressed profound concern over the reform of the autonomous financing system, valuing that the Canary Islands has “done its part” in the face of a possible reform backed by the Congress of Deputies.

Thus, he reiterated the political and social pact in the Canary Islands to call for a new system—only Vox has distanced itself—which also confronts the established “culture” in the Ministry of Finance, “where there is a clear trend to mix REF resources and a clear trend that does not understand the specificities of the Canary Islands.”

“The Canary Islands are far away, and we Canarians are used to fighting tooth and nail,” he added.

DOMÍNGUEZ: THE CANARIANS ARE NOT “SECOND-CLASS CITIZENS”

The Deputy President of the regional government, Manuel Domínguez (PP), stated that the Canary Islands are “an example of what dialogue, conversation, and defending” the archipelago “above all else” should look like, something that is now also applicable to the reform of the autonomous financing and debt cancellation.

He commented that Canarians are not “second or third-class citizens” and have “the same rights as the rest of Spanish citizens,” so any agreement must be equal across all territories.

In this vein, he criticised the agreement for “limiting” the islands by setting it at 50% of the outstanding debt as of 31 December 2023, thus making it the “only autonomous community subject to this lower requirement,” in addition to the reduction of generated surpluses.

“What concerns us is the potential for us to be unequal compared to other autonomous communities. We are worried about the consequences of bilateral agreements and understand that the Canary Islands are undeniably an underfunded community,” he remarked.

The deputy spokesman for Agrupación Socialista Gomera (ASG), Jesús Ramos, acknowledged that the autonomous financing system needs “reviewing,” and praised the Government for gathering parliamentary groups to undertake this task.

Regarding the debt cancellation, he commented that it “penalises” compliant autonomous communities, like the Canary Islands, which is why his group is opposed to it.

Luz Reverón, spokesperson for the Popular Group, asserted that the debt cancellation will “directly affect all Canarians” in terms of basic service provision, in addition to “punishing” compliant communities and “rewarding” those who “have not done things properly.”

In her opinion, this agreement will lead to a “breakdown of the common fund of all Spaniards, a breakdown of solidarity among all Spaniards, and consequently a breakdown of equality.”

Nicasio Galván, spokesperson for Vox, argued that the debate on autonomous financing is “nothing more than a futile discussion” among those wanting to maintain the “disaster” of the autonomous state, citing as an example that “the Canary Islands have been at the bottom of all measurable economic and social indicators for decades.”

He lamented that “no one” speaks of reducing expenses, as they only wish to “spend more, more, and more.”

NC-BC CALLS FOR NO DISTORTION OF THE AUTONOMOUS FINANCING DEBATE

Luis Campos, spokesperson for NC-BC, claimed that the agreement to seek a new financing system already “exists” in the Canary Islands to safeguard public services—only Vox is excluded—but called for no distortion with “elements” that could separate groups from this “common position.”

Regarding the debt cancellation, he also noted there is a “majority position in Parliament” initiated by his group demanding a per capita distribution.

José Miguel Barragán, spokesperson for the Nationalist Group, recognised the “unity” in the Canary Islands since 2015 around the reform of the autonomous financing, while also condemning the “injustice” of the debt cancellation agreement, as it will be paid by “all Spaniards.”

In this context, he called for a “somewhat fairer” agreement that considers the debt per inhabitant and does not limit it to 50%, as this “penalises” those who have managed public finances responsibly.

Sebastián Franquis, spokesperson for the Socialist Group, emphasised his group’s support for the “Canarian statute,” but simultaneously distanced himself from the regional administration if its intention is to “create a front to continue the confrontation with the Government of Spain.”

Regarding the debt, he remarked that the Canary Islands is one of the regions that “benefits most” from the agreement, while describing it as “logical” that only 50% should be paid, as it is “common sense” that the State does not pay more debt than what the autonomous community would.

Franquis urged the Minister of Finance, Matilde Asián (PP), to “defend” the interests of the Canary Islands and not abandon negotiations.

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