Canary Islands Reject Debt Write‑off for Spain’s Regions, Launch Legal‑Political Battle

Fernando Clavijo, president of the Canary Islands government, announced on Tuesday that his administration will oppose the national debt‑forgiveness scheme for Spain’s autonomous communities and will pursue a legal‑political fight to stop it.

“We cannot defend it, we cannot sustain it, and we will not support it as the Government of the Canary Islands,” Clavijo told parliamentary group leaders after a meeting aimed at building support for a new distribution strategy.

Clavijo argued that any debt‑forgiveness measure must be identical for all Spaniards, based on a population‑adjusted criterion so that every territory stands on an “equality plane”.

“We are neither more nor less; otherwise the Canarians would be paying the Catalans’ debt,” he warned, adding that the government will not be “complicit in mortgaging the future of those who live in the archipelago and aggravating an already difficult social situation.”

He stopped short of a final judgment until the definitive text of the agreement approved by the Council of Ministers is known, but noted that a broad parliamentary majority backs an alternative debt‑forgiveness model.

Why the Canary Islands feel they are being penalised

• The archipelago is the only autonomous community that has reduced its debt in recent years, whereas Catalonia’s debt has risen by €17 billion over the last decade.
• The proposed scheme would forgive only half of the Canary Islands’ debt, leaving roughly €1.7 billion outside the agreement.
• In addition, the surplus generated by the islands would be deducted, creating what Clavijo called a “double damage.”

“We would have liked to have more money for the welfare state—health, education, universities, social services—but we have been serious and rigorous,” he said, emphasizing that the “debt forgiveness” is merely a euphemism for transferring the debt to all Spaniards and imposing discriminatory criteria.

Clavijo also expressed deep concern about the reform of the autonomous financing system, claiming that the Canary Islands have already “done the work” needed for a possible reform approved by the Congress of Deputies. He reiterated a political‑social pact (excluding Vox) to demand a new financing system that respects the archipelago’s particularities, which he feels are misunderstood by the Ministry of Finance.

“The Canary Islands are far away, and we are used to fighting tooth and nail,” he added.

Domínguez: Canarians are not “second‑class citizens”

Manuel Domínguez, vice‑president of the regional government (People’s Party), stressed that the Canary Islands are an example of dialogue and defence of the archipelago above all circumstances, especially regarding the financing reform and debt reduction.

“Canarians are not second‑ or third‑class citizens; they have the same rights as the rest of Spaniards, so any agreement must be equal across all territories.”

He criticised the agreement for capping the islands at 50 % of their live debt as of 31 December 2023, making the Canary Islands the only community subject to a downward requirement and also reducing the surplus they have generated.

“We are worried about ending up unequal to other autonomous communities. We see the danger of bilateral agreements that would leave the Canary Islands under‑financed.”

Other regional voices echoed these concerns:

• Jesús Ramos (Agrupación Socialista Gomera) called for a review of the financing system and opposed the debt‑forgiveness, saying it penalises compliant regions like the Canary Islands.
• Luz Reverón (Popular Group) warned that the measure will directly affect all Canarians, punishing those that have managed their accounts well and rewarding those that have not, thereby breaking the “common pot” and solidarity among Spaniards.
• Nicasio Galván (Vox) dismissed the financing debate as a sterile discussion, pointing out that the Canary Islands have long ranked at the bottom of economic and social indicators and lamented the focus on increased spending rather than cuts.

NC‑BC calls for no distortion of the autonomous financing debate

Luis Campos, spokesperson for NC‑BC, affirmed that a pact for a new financing system already exists in the Canary Islands (with Vox excluded) and urged that the debate not be distorted by elements that could split the consensus.

He noted a parliamentary majority supporting a per‑capita distribution of any debt reduction.

Other party leaders added their positions:

• José Miguel Barragán (Nationalist Group) highlighted the unity since 2015 around financing reform and condemned the debt‑forgiveness agreement as unjust, insisting that all Spaniards would bear the cost. He called for a fairer deal that considers debt per inhabitant and does not limit forgiveness to 50 %, which harms regions that have managed their public accounts responsibly.
• Sebastián Franquis (Socialist Group) reaffirmed support for the Canarian charter but distanced the party from the regional executive if it seeks to confront the Spanish Government. He described the 50 % limit as logical and common‑sense, arguing that the State should not pay more debt than the autonomous community itself.

The emerging consensus among most regional parties is that the proposed debt‑forgiveness scheme discriminates against the Canary Islands, jeopardises fiscal equity, and could set a precedent that undermines solidarity across Spain.