Regional government begins push to bring Canary Decree to the State

The Government of the Canary Islands has launched a campaign to gather support and publicise the so‑called Decreto Canarias, a document that seeks to transfer a closed package of economic, social and fiscal measures—considered a priority for the archipelago—to the Spanish State.

This initiative comes at a time of budgetary deadlock at the national level, with the Spanish Government repeatedly postponing the General State Budget since 2023 and relying on a parliamentary majority that Prime Minister Pedro Sánchez only occasionally secures in the Congress. In this context, the Canary Islands’ authorities are trying to convey the islands’ needs to the highest echelons of power.

The proposal is framed as a real decree‑law of state scope, whose approval would depend on the Council of Ministers and, subsequently, on the endorsement of the Congress of Deputies. Before that stage, Canary President Fernando Clavijo has begun a round of contacts with island councils, municipalities, business groups and trade unions to gather backing and present the text as a demand shared by the whole of Canary society.

The Proposals of the “Decreto Canarias”

In a communiqué explaining the decree, the regional executive stressed that it arises in the absence of a State General Budget, leaving the updating of items that directly affect the Canary Islands in limbo—from free public transport to housing, employment, infrastructure and social policies. Rather than negotiating these demands fragmentarily, the government has concentrated them into a single legal instrument.

The content covers several areas:

• Social and economic measures – continuity of free land transport, funds for employment, education and social services, and specific resources for the reconstruction of La Palma after the volcanic eruption.
• Structural demands – state financing, a differentiated tax regime for the archipelago, and compliance with commitments enshrined in the Statute of Autonomy and the Canary Agenda.

The decree does not create new competencies; it simply calls for the effective execution of obligations already assumed by the State. It relies on the singularity of the Canary Islands as an ultra‑peripheral region and on the additional costs generated by their distance and territorial fragmentation.

President Lola García Supports the Decree

In a separate statement from the island council, President Lola García voiced her backing:

“We must avoid that the political paralysis of the State continues to harm the Canary Islands and, directly, islands like Fuerteventura. Defending this decree is defending the rights of Fuerteventura’s citizens, demanding that the State fulfil its obligations, and betting on a Canary Islands that does not stop, that moves forward and that claims what is due with unity, firmness and responsibility.”

Economy, Transport, Housing, Taxes, Measures for La Palma…

According to the executive, the draft examined with parliamentary spokespeople incorporates all proposals from the various groups on matters that fall under state competence. It also includes contributions on social rights, poverty reduction, employment, productivity, economic diversification, fiscal policy, and the strengthening of public services in areas that belong to the Spanish Government.

Additional inputs have enriched the text:

• A claim for state financing of railway infrastructure projects.
• Updates to the POSEI and financial resources for the primary sector.
• Protection of fiscal measures for La Palma’s reconstruction.
• Guarantees for air connectivity to El Hierro and La Palma.

The final document comprises a declaration of principles, 35 articles divided into four chapters, 12 additional provisions and three final clauses.

Social and Economic Recovery

The first chapter, titled “Measures for Social and Economic Recovery,” demands that the central government guarantee, for at least two more years, the free public land transport in the Canary Islands, allocating €160 million per year.

Other earmarked funds include:

• €45 million for the 2026 Integral Employment Plan.
• €42 million for a four‑year youth employment plan.
• €42 million for educational infrastructure.
• Extension for three more years of a 60 % IRPF deduction for residents of La Palma, La Gomera and El Hierro.
• A 50 % reduction in the employer’s Social Security contribution for island‑based activities, similar to the regimes in Ceuta and Melilla.
• €100 million (2026‑2028) to continue the full recovery of La Palma after the volcanic eruption, plus €30 million for a Special Employment Plan on the island in 2026, extendable to 2027.

Housing and Social Measures

The second block, “Support Measures for Vulnerable Groups,” seeks to reinforce the social safety net:

• Continuation of the €30 million per year Poverty Plan.
• Housing – request for the state to allocate land in 2025 for the construction of protected housing, and €105 million per year (2026‑2027) for affordable‑housing works.
• Additional funding for essential services:
  • €40 million for professional training.
  • €42 million for a youth‑unemployment plan.
  • €28 million for free early‑childhood education (first cycle).
  • €120 million for co‑financing dependency care.
  • €40 million for the extra cost of health care.
  • €50 million for water‑treatment projects.
  • €20 million for the renewal of energy‑generation centres.

Infrastructure and Further Competences

Under the Canary Agenda, the government proposes a 50 % reduction in the Social Security contribution for island companies that adopt productivity‑linked wage improvements.

Key infrastructure demands include:

• The state to finance 50 % of the drafting and execution of public‑road transport projects for Lanzarote and Fuerteventura.
• €20 million (2026‑2027) for general‑interest coastal works, and a request that the state transfer executive and management powers over the maritime‑terrestrial public domain to the autonomous community.
• €20 million annually for hydraulic works.
• €204 million (2026‑2030) to fund the Road Convention.
• €20 million each for tourism infrastructure and for R&D + I projects.
• State financing for 1,400 positions of the General Corps of Canary Police to ensure their deployment across all islands and their judicial police functions.

Absence of PSOE and NC

President Clavijo thanked parliamentary spokespeople for their collaboration in improving the draft of the “Urgent Measures for the Maintenance and Recovery of the Social and Economic Conditions in the Canary Islands.” All groups except Vox submitted proposals in December, which, according to the president, enriched the decree. The final version will be shared next week with the Federation of Canary Islands (FECAI), the Federation of Canary Municipalities (FECAM) and the Presidential Advisory Council, which represents business associations and the main trade unions of the archipelago.

Clavijo denied that the technical and legal teams excluded proposals from the PSOE and NC for political reasons, stating:

“It is an absolutely technical document. All items that pertain to state competencies were added; those that only concern Canary competencies were left out because they do not fit into a decree that will be approved by the Council of Ministers and the Congress of Deputies.”

The meeting, held at the Presidency headquarters in Santa Cruz de Tenerife, was attended by President Fernando Clavijo; Vice‑President Manuel Domínguez; Vice‑Counselor of the Presidency Alfonso Cabello; Vice‑Counselor of the President’s Cabinet Octavio Caraballo; Vice‑Counselor of Legal Services Jorge Riestra; and Secretary‑General of the Presidency Ceferino Marrero. Parliamentary groups were represented by José Miguel Barragán (CC), Luz Reverón (PP), Javier Nieto (Vox), Casimiro Curbelo (ASG) and Raúl Acosta (Mixed Group).