The Spanish government approved on Tuesday a draft law to forgive part of the debt of the country’s autonomous communities.
In total, €83.3 billion will be forgiven, with €17 billion allocated to Catalonia. Andalusia will be the biggest beneficiary, receiving €18.8 billion, followed by Catalonia and Valencia with €11.2 billion each.
The measure stems from an agreement between the governing Socialists and pro-independence Esquerra Republicana in exchange for their support of PM Pedro Sánchez’s investiture.
For Catalonia, the debt relief will reduce nearly 20% of the regional government’s total debt.
The allocation for each autonomous community was calculated based on population, per-capita debt forgiveness, and tax…