Tuesday, January 17, 2017

SPAIN: The keys of the new model of funding’n auton’mica – EntornoInteligente

Five Days / The negotiation of the new system of funding autonomous community is officially open tomorrow with the VI Conference of Presidents . The Executive of Mariano Rajoy argues that all citizens have access on equal terms to the key services, but also is willing to accept the principle of ordinalidad to the territorial solidarity does not modify it, as is currently the case, the ranking of per capita funding. The treasury will defend a greater harmonization autonomous in matters of Succession and Heritage.

The model of regional finances determines how to allocate the tax revenue between the regions, which are those that have jurisdiction over pillars of the welfare State such as health and education . Of there the importance of achieving a model of stable funding, fair and sufficient. Politicians and academics agree that the current model does not work. It is dark, arbitrary, and unfair. The current system was adopted in 2009 after a tough negotiation and the agreement will only be reached after the then Government of José Luis Rodríguez Zapatero to put more money on the table, to ensure that no community would lose and the approval of additional funds to meet the different sensitivities. In the end, those funds ended up by spoiling the model. The political beat to the criteria of economic and technical, giving rise to a system that generates distortions.

The Government of Rajoy will begin this Tuesday trading on the VIConferencia of Presidents. Despite the fact that the process is in a preliminary phase, the Executive has already raised some of the features of the new model.

Beginning of Ordinalidad The International Foundation Olof Palme, and Fedea take more than a year doing debates all over Spain on how should be the new system of funding. Some of the analysts that have participated in the project will also form part of the commission of experts which will choose the Government and the autonomous communities to draw up an initial report. There is a degree of consensus high that the new model should respect the principle of ordinalidad. This means that the mechanisms of solidarity and levelling does not reverse the ranking of per capita resources. In other words, the system should reduce the differences between rich communities and poor, but not to swap their positions. Currently, Madrid is the community with the highest fiscal capacity and, when applied to the leveling mechanisms, falls to the eleventh place in the ranking of funding per capita adjusted (see chart).

Valencia is the community worse financiaciada and Madrid, which lost more resources with the mechanisms of solidarity

SPAIN: the keys to The new funding model for regional

With Information of Five Dias

http://entornointeligente.com/articulo/9509864/ESPANA-Las-claves-del-nuevo-modelo-de-financiacioacute;n-autonoacute;mica

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