Negotiators from ERC, PSC, and the Ministry of Finance are working on a new funding model for Spain’s autonomous communities. The system would be standardized but grant the largest benefits to Catalonia. A key change is that SME VAT revenue will be calculated based on the companies’ registered office rather than local consumption, giving Catalonia an estimated €1.4 billion extra per year, followed by Madrid with €500 million.
The State will provide an additional €20 billion to ensure no other community loses income, while other measures involve personal income tax management, non-homogeneous competencies (such as the Mossos d’Esquadra and prisons), and an investment consortium. The new system could take effect in 2026.