President Illa defends singular financing model for Catalonia

Catalan President Salvador Illa defended a "singular" financing model for Catalonia at the Conference of Presidents in Santander on Friday.

During the meeting – bringing together Spanish Prime Minister Pedro Sánchez and regional leaders – Illa backed "reviewing and updating" the regional financing model, arguing the current model "does not respond to the real needs of the Autonomous Communities," according to a source close to the president.

Illa insisted a singular financing system for Catalonia is "in solidarity with the rest of Spain," warning that he would not accept "lessons in solidarity from those who practice fiscal non-solidarity."

Spain to forgive debt

Spanish PM Sánchez announced at the Conference of Presidents that he will convene the Council of Fiscal and Financial Policy in January, with a view to Spain forgiving part of the Regional Liquidity Fund (FLA) debt.

This was something agreed between the Socialists and pro-independence Esquerra Republicana during the negotiations to re-elect Sánchez as PM.

The text of the agreement stated that the Spanish government would forgive Catalonia €15 billion, which would result in an additional saving of €1.3 billion in interest. This amounts to 20% of the €71 billion debt that Catalonia owes to Spain.

Sánchez also urged the Autonomous Communities to jointly agree on an regional financing model "that reconciles multilateralism and bilateralism," that "protects solidarity between territories," and guarantees that all regions obtain "more resources than they receive today."

Illa: "Very broad consensus"

At a press conference following the meeting, Illa stated that there was "a very broad consensus" that the financing system must be reformed, and defended his right to address the issue: "No president has more right than another to talk about financing."

The Catalan President criticized some regional leaders for making "comments based on ignorance and not taking into account the reality of what is happening in Catalonia," adding that he, on the other hand, has "a proposal."

Illa also "strongly agreed" with Sánchez's proposal for Spain to forgive part of the FLA debt, stating that the move would help "correct the mistakes" made in the management of the 2008 economic crisis.

Housing, health, immigration

One of the items on the agenda of the Conference of Presidents was housing, and Illa took the opportunity  during the meeting to present some of the policies being implemented in Catalonia.

He emphasized that the program designed by his Socialist government as "the most ambitious in Spain," with the construction of 50,000 homes by 2030 and the mobilization of resources "the largest ever undertaken by an autonomous community" in this area, totaling €4.4 billion during this legislature.

Regarding healthcare, the Catalan President stated that universal public healthcare must be "strengthened." In fact, he pointed out that this issue is where "the inefficiency of the current financing model is most clearly reflected."

On the topic of immigration, Illa called for a more "human" approach, stressing that the responsibility of all presidents is "to put names and faces to people." He also argued that integration "enriches" and reaffirmed that Catalonia "has been, is, and wants to remain a land of welcome, by conviction, by choice, and by necessity."

Next conference in Barcelona

During the meeting, Illa proposed that the next Conference of Presidents be held in Barcelona to demonstrate that the Catalan government "is not in a state of conflict and confrontation" but rather "engaging in spaces of cooperation and commitment."

In his speech the Catalan president appealed for "loyalty, dialogue and cooperation between institutions and administrations," saying that Catalonia "speaks from a perspective of solidarity, fraternity, involvement and rigor."