In this text, I briefly summarize a general consideration of how the proposed new regional financing affects the Balearic Islands. Despite the criticisms from various quarters, the proposal presented, as it is known, strictly speaking, does not constitute a new financing system. It is not unique to Catalonia, although it does benefit from it to a certain extent (but not only Catalonia: Andalusia, Murcia, and the Valencian Community also benefit). It does not remove Catalonia from the common regime nor place it under the Economic Agreement. It is not a faithful reflection of the investiture agreement, which has been so often discussed as separatist blackmail. It is not a fiscal pact. It does not commit to the desired ordinality. It is not a model based on the fiscal capacities of each region. It remains a model that guarantees needs based on the assumptions considered in population adjustments, and it grants little additional effective fiscal responsibility. The proposal is indeed somewhat simpler than the current system. It streamlines the treasury of the regions by reducing the system of advance payments. Although the results are ultimately interpreted in terms of relative rather than absolute gains, this is a model that, based on providing more funding, allows for the declaration that all regions "win."

Despite the climate of distrust between the PP and the Spanish government, Marga Prohens's administration is open to negotiating the PSOE's financing proposal. This was explained by the First Vice President and Minister of Economy and Finance, Antoni Costa, who, despite acknowledging that he attended the meeting of the Fiscal and Financial Policy Council (CFF) with "skepticism," left with some hope of including the Balearic Islands' demands in the new regional financing model. "This proposal is only from the grassroots level, but it is negotiable, and we will participate," he assured. "The Islands will be involved in the negotiations on the financing system," he concluded.

The Balearic Islands will approach their record fiscal deficit of the last decade in 2025. These are the calculations of the Ministry of Economy and Finance, which forecasts that the difference between what the Islands contribute and what they receive will be €570.4 million. This deficit was only surpassed in 2020, the year of the pandemic, when the balance was €579.5 million. On the eve of the Fiscal and Financial Policy Council (CPFF), where the Spanish government will explain its proposed reform of the financing system, the Ministry warns that the Islands are among the territories most disadvantaged by the current distribution.