Debt Relief Sparks Political Clash

Published: 2025-02-26

A proposed debt relief plan by Spain's Ministry of Finance has ignited political tensions.

The plan, which aims to forgive €83.2 billion of regional debt, has been criticized by opposition leaders as favoring Catalonia and other regions.

Andalusia, set to benefit the most with €18.8 billion forgiven, has also voiced concerns.

Andalusian Finance Minister Carolina España called the plan a "tailored suit for separatists," accusing the government of prioritizing political alliances over fair reform.

Meanwhile, representatives from 14 regions governed by the Popular Party walked out of a key meeting in protest, demanding a comprehensive overhaul of the regional financing system.

The controversy highlights deep divisions over fiscal policy and regional autonomy in Spain.