Scheme to be retroactive to 1st January

Spain’s prime minister José Luis Rodríguez Zapatero said yesterday that the Balearics archipelago are set to receive extra funding from central government. A new funding system has been agreed upon after an hour and a half meeting in Madrid between the prime minister and the president of the Balearics government Francesc Antich.

The increased funding hopes to address the issue of the Balearics receiving up to 22% less than the average for autonomous communities in Spain and will be retroactive back to 1st January 2009. Known as the ‘Autonomous Finance System’ the new rules will be in place by February. Speaking to the media after the meeting Antich said “The meeting was very positive. Once again the prime minister recognised that the Balearics were the hardest hit by the current funding system. This is an important starting point to achieve our goal of receiving the average level of funding – not 21 points less than other regions as is the case currently.”

The new system will give greater weight to the increases in population that the islands have experienced.