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Madrid Region Says Central Government Owes €12.37 Billion

The region seeks an urgent decree to update monthly state transfers that it says are running short in 2026.

Overview

  • Madrid’s government updated its tally to €12.367 billion in unpaid transfers and obligations since 2019, which it says equals about 40% of its 2026 budget.
  • The region links this year’s gap to delayed updates in “entregas a cuenta,” the monthly advances from the state, and estimates more than €750 million has not arrived so far in 2026.
  • Economy chief Rocío Albert said she asked new Finance Minister Arcadi España for a fast-track decree to fix the transfers and reported no reply, adding the region borrowed on markets and paid about €4.7 million in costs.
  • The claimed total includes €4.513 billion tied to the Competitiveness Fund cap, €2.668 billion for underfunded long-term care under the dependency law, and €2.785 billion for water and environmental works, plus a €993 million shortfall in EU recovery funds.
  • The regional administration says health, schools, and transport will not suffer cuts and it still plans a 2027 income tax trim, while portraying the situation as a breach of institutional trust and noting no central government response in the coverage.