Prohens says 'no' to the State's debt forgiveness of 1.741 billion euros.

PalmThe Spanish government plans to soon approve in the Council of Ministers the draft bill regulating the debt forgiveness of the Regional Liquidity Fund (FLA), which it agreed with the ERC in February. This law, which entails the forgiveness of more than €83 million in the autonomous communities, would mean forgiving €1.741 billion in debt in the Balearic Islands. If the Congress of Deputies approves it—Compromís, for now, has spoken out against it—Marga Prohens' government is considering the possibility of renouncing it. As she has announced Mallorca Diary, The Executive opposes this distribution. Sources from the Ministry of Economy and Finance confirm this: "We say 'no' to debt forgiveness."

The Ministry's argument is that the Balearic Islands would end up paying more if this law is approved, because although the State would absorb the debt of the Balearic Islands, "we would still have to pay the same on a Spanish scale." "We would end up paying the debt of territories like Catalonia, which is enormous," it noted. Instead, the Executive demands that "a debt restructuring, a reduction in the interest on the money lent through the FLA, be negotiated in a multilateral negotiation with clear and transparent conditions."

The PSIB and MÁS have condemned this position. The deputy secretary general of the PSIB (Basque Socialist Workers' Party), Rosario Sánchez, considered that a "historic opportunity" would be squandered: "This is not the first time that Marga Prohens's PP has broken the political and social consensus that has been built in the Islands, such as the demand for a Special Regime or a Special Tax Regime." With the debt forgiveness, she believes that the Islands "would improve their financial autonomy and vulnerability to changes in the economic cycle, because it gives citizens more budget and responsiveness."

For his part, Lluís Apesteguia (MÁS) also criticized the Catalan government's position. "The proposal could be greatly improved, but it was born from a basic concept of justice: we have gone into debt to the government, especially because it has deprived us of the resources we generated and needed," he noted. In this sense, he accused Prohens of "not accepting the extended hand and playing more like a PP delegate than a president of the country."