Madrid vs Barcelona in budget struggle

"Catalonia to take on government over its weak deficit reduction plan," headlinesEl País, in the wake of a "tense" meeting of the Fiscal and Financial Policy Council in Madrid which was marked by conflict between Elena Salgado and economic advisers to Spain’s autonomous communities. The Minister for the Economy "rejected adjustments proposed by six regional governments," notes the daily, prompting "a serious clash between the central government and the regions, especially Catalonia." El País points out that although Spain’s public debt is still lower than average for a European country, certain autonomous communities are "in danger of financial suffocation." The newspaper adds that "healthy fiscal coordination will be crucial to allay doubts about public spending deficits "at a time when Brussels is keeping a close watch on the public finances of countries in difficulty" and the markets "have yet to be convinced that Europe’s institutions can ensure a minimum of fiscal coordination which is now vitally important for Spain."