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President of the Generalitat Salvador Illa with Spanish prime minister Pedro Sánchez. EFE
Government to pardon 83bn euros of regional debt to help keep Catalan nationalists on side

Government to pardon 83bn euros of regional debt to help keep Catalan nationalists on side

The agreement has been presented by the finance ministry as a cancellation of part of the debt across all Spanish regions

SUR

MALAGA.

Thursday, 27 February 2025, 14:16

Catalan independence politicians have succeeded in persauding central government to agree to cancel 17.1 billion euros of regional government debt in Catalonia. The move comes as part of continuing efforts by the minority Socialist-led national government to shore up its parliamentary support with the votes of Catalan nationalist parties.

The agreement has been presented by the finance ministry as a cancellation of part of the debt across all Spanish regions - 83.2 million euros in total - in order to "clean up their accounts and improve their financial position and access to [lending] markets".

However the opposition Partido Popular (PP), which controls most regional governments in Spain, has said that the cancelling of the debt is nothing more than "a payment" to Catalan independence parties.

"In a nutshell, this legislature, however long it lasts, is about seeing how much secessionist support costs so [Socialist leader] Sánchez can stay as PM after losing elections," said PP leader Alberto Núñez Feijóo. He added that the regions his party controls would all vote against cancelling the debt.

The debt cancellation was negotiated by left-wing ERC for Catalonia. Its political rival in the region, Junts, has said the concessions by Madrid have not gone far enough.

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surinenglish Government to pardon 83bn euros of regional debt to help keep Catalan nationalists on side