FECAI urges suspension of spending rule amid global geopolitical crisis

Lola García: “The island councils should be able to use our cash‑flow leftovers without restrictions, to guarantee a decisive response to economic and social needs.”

The Canary Islands Federation (FECAI) is demanding that the Spanish State temporarily suspend the spending rule that limits the use of treasury surpluses by the island councils. The request was approved at FECAI’s most recent General Assembly, citing the current international geopolitical crisis and its uneven impact on the archipelago, which is classified as an ultra‑peripheral region.

Why the Suspension Is Needed

• Geopolitical turbulence: The escalation of the conflict in Iran and its ripple effects on energy and financial markets have created a climate of instability, directly raising the cost of living and hampering economic activity across Spain.
• Ultra‑peripheral vulnerability: As an outermost region, the Canary Islands feel these shocks more acutely. Transport, energy, and basic supplies have become significantly more expensive.
• Inadequate national measures: According to FECAI President Lola García, the measures taken by the central government so far do not account for the islands’ specific circumstances, limiting the ability of local administrations—closest to citizens—to respond effectively.

Historical Precedents

Recent crises have shown that temporary suspension of fiscal rules can be a necessary tool for effective public response:

• COVID‑19 pandemic: The Spanish Government enacted exceptional fiscal measures to support health services and the economy.
• War in Ukraine: Economic repercussions prompted the suspension of certain fiscal constraints to mitigate the impact on households and businesses.

FECAI’s Demands

The federation is urging the Spanish Government and the Ministry of Finance to:

• Flexibly apply the principle of budgetary stability, explicitly incorporating the economic, fiscal, and territorial particularities of the Canary Islands.
• Recognize the islands’ status as an ultra‑peripheral region under EU law and within the Canary Islands’ Economic and Fiscal Regime, ensuring that any fiscal framework reflects these unique conditions.