Canary Islands Government Secures €196 Million in State Funding
The Canary Islands Government has successfully negotiated the release of over €196 million in state funding aimed at employment policies, poverty reduction, and strategic infrastructure. This agreement was reached during a meeting on Monday between Canary Islands President Fernando Clavijo and Spain’s Finance Minister Arcadi España.
The funding, which will be proposed to the Council of Ministers on Tuesday, includes €30 million for poverty alleviation, €45 million for the Comprehensive Employment Plan, €23.1 million to address economic impacts from the conflict in the Middle East, €53 million for projects at Granadilla port, and €45 million for the Reina Sofía dock in Las Palmas.
President Clavijo emphasised the importance of institutional dialogue to translate commitments into tangible results for the islands, stating, “What matters is that the Canary Islands progresses and commitments turn into actions. We have defended the islands’ interests through dialogue, striving for agreements that enhance our public services and investment.”
Minister España praised the Government of the Canary Islands for its ability to negotiate effectively, saying the agreement acknowledges the unique needs of the archipelago.
In addition, the meeting led to progress on a specific decree for the Canary Islands, aimed for approval by early September. This decree will prioritise urgent commitments related to recovery efforts on La Palma, including a 60% income tax reduction for residents and a €100 million allocation for economic and social recovery.
Clavijo reiterated that negotiations regarding outstanding commitments, such as funding for hydraulic works and additional financing for the POSEI agriculture programme, would continue.
The discussions also covered a new autonomous financing system, securing an additional €1.337 billion for the Canary Islands. Essential guarantees were established to protect the economic and fiscal singularities of the region, ensuring that funds would not be absorbed into standard financing mechanisms.
Clavijo reaffirmed the commitment to sustaining and improving essential public services, such as health and education, through the newly secured resources.
Looking ahead, the Canary Islands Government plans to continue negotiations with the state to settle remaining commitments and advance measures not included in the initial decree.
