The Spanish government has proposed a historic debt relief plan for regional governments, aiming to forgive over €83 billion, or 25% of their total debt.

The plan, which must be approved by Congress, uses a population-adjusted formula to determine the relief for each region.

While Andalusia stands to gain the most in absolute terms, Canary Islands would see the largest percentage of its debt forgiven.

The proposal has sparked political tensions, with the opposition party, PP, criticizing it as unfair and calling for broader financial reforms.

Meanwhile, supporters argue it addresses past financial mismanagement and benefits underfunded regions like Catalonia.

The plan will be debated in the Fiscal and Financial Policy Council, with its approval likely hinging on Catalonia's support.