Canary Islands Government Allocates €2.6 Billion for Development Fund
The Canary Islands Government and the island councils have approved a new Development Fund (Fdcan) for 2027-2037, set to invest €2.6 billion, with 50% earmarked for housing infrastructure. The plan was unveiled during the fifth Conference of Presidents, attended by Canary Islands President Fernando Clavijo and heads of the seven councils.
Currently, the initial budget is €1.626 billion, but the total will reach €2.6 billion with additional contributions from local councils. Clavijo described the input from the councils as “very interesting and enriching” for the Fdcan draft decree.
Antonio Morales, President of the Gran Canaria Council, noted that the councils proposed to include new budget areas aimed at job creation and requested an extension of one year for the execution of the current Fdcan for councils that have already exhausted their deadlines. This extension was accepted.
The councils welcomed the Government’s proposal to prioritise investment in innovation, housing, and social care infrastructure. They emphasised that these investments should complement rather than replace the third Social Health Infrastructure Plan.
Morales highlighted that the Government’s plan reflects the needs of the islands and aims for a sustainable future. He welcomed the inclusion of economic diversification as a strategic focus in the draft, which also designates each council as the coordinating body for projects on their respective islands.
The new Fdcan aims to standardise management across the islands, with each council responsible for coordinating projects in collaboration with local municipalities. Clavijo confirmed that the management and planning of the Fdcan should be community-driven.
Despite having just 24 hours to review the draft, the councils provided valuable feedback, which will now be refined through technical work to ensure cooperation between the Government, councils, and municipalities in executing various programmes.
The current socioeconomic context of the archipelago differs significantly from that of ten years ago, allowing for the redefinition of lines and programmes. The agreement reached on Thursday clarifies that the Government’s financial participation will vary by island: 50% in Gran Canaria and Tenerife, 80% in Lanzarote, La Palma, and Fuerteventura, and 90% in La Gomera and El Hierro.
Alongside redefining funding priorities, the Government, councils, and municipalities have agreed to streamline legal processes, eliminating unnecessary procedures to speed up execution while strengthening planning and financial oversight mechanisms.
Next, a decree will be issued by the Government Council, followed by negotiations and signing of execution agreements for each island. Subsequently, each council will design projects funded by the €162 million annual contribution from the Canary Islands Government, drawing from resources previously allocated by the state.
The councils’ contributions will increase the available investment to approximately €260 million a year. According to the official Fdcan report for 2016-2026, the prior funding plan mobilised €2.619 billion, with the regional government contributing 60% and local councils and universities 40%. This investment has generated a €4.504 billion impact on the archipelago’s economy and created over 47,000 jobs.
In the past decade, 75% of the funds were allocated to infrastructure, 15% to employability programmes, and 10% to knowledge and research initiatives.
