
The Community of Madrid announces its absence from the Fiscal and Financial Policy Council to prevent the necessary quorum and block the reform of the regional financing system, which it considers a bilateral pact between the central government and Catalonia that violates equality between Spaniards and disproportionately benefits the Generalitat.
AI-generated summary
The regional financing system has been in force since 2009 and expired since 2014. The Ministry of Finance has promoted a reform since January 2024, when María Jesús Montero outlined its main lines. The Community of Madrid opposes considering that the agreement is a bilateral pact with Catalonia that violates equality between territories.
The Community of Madrid will not attend this Friday's Fiscal and Financial Policy Council (CPFF), to which the Ministry of Finance and the autonomous communities have been summoned to advance the reform of the regional financing system. It has urged the remaining PP governments to follow suit so that the quorum necessary to constitute the body is not met—a stance that the department headed by Arcadi España has described as "institutional vandalism." Isabel Díaz Ayuso's executive justified its refusal to attend the meeting because it considers that the proposal on the table was agreed upon "bilaterally" between the central government and the Catalan Generalitat, "behind the backs" of the other communities.
"This is a financing system that breaks with the equality of all Spaniards and seeks to launder the debt generated by the corrupt management of pro-independence governments, which the current socialist president has continued and intensified," they expressed early Thursday afternoon regarding their refusal to attend the CPFF. The meeting was initially scheduled for late last July to debate the draft proposal sent in early July by Finance, but it was postponed by Minister España at the request of the regional PP governments.
The 'popular' Finance and Economy regional ministers sent a letter informing María Jesús Montero's successor that they saw a "hasty" attempt by Pedro Sánchez's executive to approve a proposal that was "the result of a bilateral pact with ERC" and had the rejection of 16 out of the 17 territories included in the model—including Asturias and Castilla-La Mancha, governed by the PSOE—as they recalled. The head of Finance agreed to delay the Council, which will take place this Friday in Madrid's absence. It remains to be seen whether other regional PP governments will also abstain, as the Madrid government urges them not to attend so that the body cannot be constituted in accordance with regulations.
"The only way this agreement cannot materialize in the CPFF is for there to be no quorum at the meeting," Díaz Ayuso's executive argued on Thursday. "The Community Government has expressed its position in the internal meetings it held with the national leadership of the PP and the rest of the Economy and Finance regional ministers," the same sources emphasized. At the time of writing, no other PP autonomous community had joined the boycott promoted by Madrid.
Díaz Ayuso's executive criticized the proposal to reform the current regional financing system—in force since 2009 and expired since 2014—championed by the Ministry of Finance since last January, when María Jesús Montero, then vice president and head of the portfolio, outlined its main points. "What has been presented to us today is state corruption in its absolute form," stated Rocío Albert, Madrid's regional minister of Economy, after the first CPFF held with the reform proposal on the table.
"We are not going to accept that Catalonia and the Catalan pro-independence party receive 83% more than Madrid receives, with very similar capacities," she added regarding the model that allocated 2.555 billion euros more to the region than the current one, and 4.686 billion to Catalonia. "It is a completely confiscatory system that destroys the soul of this region," insisted Díaz Ayuso in her reproach just a few weeks ago.
AI outlook — possibilities, not facts
The CPFF will not be held due to lack of quorum if other PP communities follow Madrid's position
Possible · Within days
The central government will postpone the CPFF again if the necessary quorum is not reached
Likely · Within weeks

Javier Milei took advantage of his intervention at the V Madrid Forum in Santiago de Chile to attack the Spanish Government, link the Ceuta migration crisis with an alleged radical left agenda and renew his personal insults towards Pedro Sánchez, while praising Santiago Abascal and Vox for their political support.
The president of the Generalitat, Salvador Illa, met this Thursday in kyiv with the Ukrainian president Volodymyr Zelensky to convey Catalonia's solidarity with Ukraine, condemn the attacks against civilians and sign collaboration agreements with the regions of Lviv, Dnipropetrovsk and Zaporizhia in areas such as support for displaced people, reconstruction and energy efficiency. He also invited Zelensky to visit Catalonia.

The Minister of the Interior, Fernando Grande-Marlaska, sent a letter to the president of the CGPJ, Isabel Perelló, to protest Judge María Tardón's prohibition on sharing the police report on the massive entry of immigrants in Ceuta, which indicated the involvement of Moroccan authorities. Although Perelló supports judicial independence, he recognizes the seriousness of the situation and the need to inform political leaders.

The Government of Isabel Díaz Ayuso announces that it will not participate in the vote of the Fiscal and Financial Policy Council on the new regional financing model agreed upon by Pedro Sánchez and Oriol Junqueras, seeking to prevent a quorum. Madrid councilor Rocío Albert leads the boycott, while other PP communities plan to vote against. The Ministry of Finance criticizes the attitude as irresponsible and assures that it will move forward with the support of Catalonia and the Canary Islands.

The President of the Government, Pedro Sánchez, confirmed that the Executive summoned the Moroccan ambassador to Spain, Karima Benyaich, on August 21, due to the unacceptable statements made by two Moroccan ministers about Ceuta and Melilla. From Foreign Affairs they assure that it is the first time that the Moroccan position on these cities has been formally rejected through a call for an ambassador. Benyaich did not attend the meeting because he was outside Spain, so he received the protest through the chargé d'affaires and by telematic means. The mechanism has previously been used in other diplomatic crises, such as with Italy, Iran, Russia, Israel and Argentina.
The president of the Supreme Court and the CGPJ, Isabel Perelló, responded to the Minister of the Interior, Fernando Grande-Marlaska, defending judicial independence and respect for the decisions of Judge María Tardón in the investigation of the migration crisis in Ceuta, recalling that the governing bodies of the Judiciary cannot censor or correct judicial actions.