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Spanish Prime Minister Mariano Rajoy has proposed an “asymmetric deficit distribution” among the country’s regions, asking for "generosity” to allow Catalonia a 2013 deficit level higher than the 0.7 per cent of GDP currently set for each Spanish region.
But Rajoy is now facing a rebellion in his own People’s Party (PP), as leaders of three regions ruled by the PP – Extremadura, Madrid and Aragon, which complied with 2012 deficit targets – condemned the proposal, saying it would amount to “preferential treatment” for Catalonia.
Other PP-controlled regions are also likely to object to the special status granted to Catalonia.
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