ASSESSMENTS

Spain: Economic Needs Spur Tensions Between Madrid and the Regions

Jan 31, 2012 | 21:19 GMT

Spanish Prime Minister Mariano Rajoy (L) welcomes Basque President Patxi Lopez in Madrid on Jan. 27

PEDRO ARMESTRE/AFP/Getty Images

Summary

As part of its spending cuts program, the Spanish government presented a law that would give the central government more control over Spain's autonomous regions. The justification for the law stems from the regions' increasing deficit and the central government's need for more resources. Some regions see this law as an attempt to centralize Madrid's authority and as a potential threat to the delicate balance between the regions and the central government — a defining feature of Spanish politics. The law will pass out of financial necessity, but its implementation will generate tension between Madrid and the regional administrations.

A new law will give Madrid more control over the budgets of Spain's autonomous regions. ...

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