Prime Minister Sánchez and President Armengol in animated discussion.

Prime Minister Sánchez and President Armengol in animated discussion. | Pere Bota

Majorca Daily Bulletin reporterPalma26/01/2020 04:01
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Included in the 2,864 million euros that the Balearics will receive this year through the regional financing system, there is a sum of 650 million euros for the so-called convergency fund. However, as the Balearics put in 1,020 million euros to two other funds - guarantee and sufficiency - there is a negative balance between these funds of 370 million euros.

The method for assessing the overall system of regional financing ran out in 2014. Since then, Madrid has not updated it, despite calls for reform. In the case of the Balearics, this means that this year there will be 370 million euros of tax revenues raised in the Balearics which go to other regions in the form of specific funds. This figure has come down, as it was 420 million last year, but it underlines the Balearics arguments regarding reform - the islands are a net contributor, exceeded only by Madrid in the amount of this contribution.