In 2023, Andalusia fell short by 1.528 million in comparison to the average funding allocation.
Andalusia, one of Spain's most economically disadvantaged regions, is facing a significant funding gap in the country's common funding system for autonomous communities. This imbalance has been highlighted by Carolina Spain, the Economy, Finance, and European Funds counselor, who has called for urgent reform to address the issue.
According to data from the Ministry of Finance, Andalusia received 1,528 million euros less in resources than the average received by autonomous communities in 2023. This disparity is largely due to the current financing and tax systems, which allocate resources and contributions unevenly among regions, resulting in Andalusia receiving less equitable funding relative to its needs compared to wealthier regions like Madrid.
Spain has been criticized for its disproportionate contributions to the common fund of autonomous communities, with Madrid funding around 70% of the common regime funds in 2023, while Andalusia receives comparatively less despite having greater socio-economic needs. This has led to a call for tax harmonization and more equitable resource allocation to avoid such imbalances.
Andalusia, as Europe's largest olive oil-producing region, heavily relies on EU funds via the Common Agricultural Policy (CAP), receiving substantial direct payments that are crucial for its agricultural sector. However, changes or merging of these payments with other funds threaten to cut Andalusia's agricultural support by up to 20%, adding to the economic pressure.
The demand for reform is not new, with the PP (People's Party) also supporting this demand when they were in opposition. The Foundation for Applied Economics Studies (Fedea) conducted the analysis of the year 2023's liquidation of resources, and the need for urgent reform is echoed in political debates and expert proposals advocating tax harmonization, more equitable resource allocation, and separation of CAP funds from cohesion funds to protect agricultural support.
Carolina Spain has emphasized that the Andalusian government seeks justice, not more resources or privileges, but equality with other communities. She has urged the Ministry of Finance to immediately launch a temporary leveling fund for communities receiving fewer resources than the average. In her statement, she also mentioned that even Minister María Jesús Montero, in her previous role, had requested this fund for Andalusia.
The Ministry of Finance communicated the liquidation of the resources of the autonomous financing system for the year 2023. However, the issue remains unresolved, and Spain's demand for an urgent reform of the autonomous financing system, a consensus among all autonomous communities, continues to gain momentum.
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People in Andalusia, Spain's most economically disadvantaged region, are calling for urgent reform in the country's financing system to address a significant funding gap. The disparity in resources allocation, which favors wealthier regions like Madrid, has been highlighted by Carolina Spain, the Economy, Finance, and European Funds counselor. The demand for reform includes tax harmonization, more equitable resource allocation, and separation of EU agricultural funds from cohesion funds to protect the agricultural sector in Andalusia, Europe's largest olive oil-producing region.ura of Finance and European Funds counselor, Carolina Spain, has emphasized the need for justice rather than more resources, urging the immediate launch of a temporary leveling fund for communities receiving fewer resources than the average. The Ministry of Finance has communicated the liquidation of resources for the year 2023, but the issue remains unresolved, with the demand for reform gaining momentum in political debates and expert proposals. For more information on this ongoing issue, visit ABC Andalusia's website.
