The President of the Government of the Balearic Islands, Margalida Prohens, has reached an agreement with the President of the Government of Spain, Pedro Sánchez, to begin negotiations on a railway investment agreement for the Balearic Islands. Both governments will establish a technical committee to facilitate national funding contributions for railway projects in the archipelago, such as the recently announced Palma-Llucmajor train. “This is good news for our community, enabling us to move forward with much-needed mobility improvements like this train,” Prohens emphasised.

Prohens advocates for an extension of the fiscal regime for innovation in the Balearic Islands

During the meeting at La Moncloa, Prohens defended the need to extend the special fiscal regime beyond 2028, promoting corporation tax reductions for innovative companies. This measure, intended to encourage investment in innovation, aims to facilitate capital attraction and foster the growth of high-value-added sectors in the Balearic Islands. “We want to strengthen our special regime, implementing a specific fiscal system that considers our island-specific characteristics,” Prohens explained.

Prohens and Sánchez agree on new railway agreement

Reform of the financing system and opposition to agreement with Catalonia

Prohens also conveyed to Sánchez the need to convene the Conference of Presidents to discuss reform of the regional financing system. The President of the Balearic Government reminded that the Balearic Islands is one of the top three regions contributing per capita, second only to Madrid. She also expressed opposition to the recent agreement with Catalonia, stating that it “breaks the common funding framework” and highlighted the opposition from the islands’ economic and social agents to preferential treatment for this region.

Migratory crisis in the Balearic Islands and long-term solutions

Prohens stressed the strain that the migration crisis places on the Balearic Islands and called on the president for measures that go beyond the redistribution of migrant minors. She also pointed to the need for a change in Spain’s migration policy strategy. “We’re at the limit,” Prohens stated, proposing a long-term approach with more effective solutions.

Affordable housing and public land allocation

On housing, Prohens reported that the central government is considering public land allocation in collaboration with the private sector to create affordable housing. She also suggested that part of this housing should be reserved for state employees in the islands, a proposal welcomed during the meeting.

Commitment to collaboration between both governments

Prohens and Sánchez concluded the meeting by reaffirming their commitment to work closely on key issues for the Balearic Islands. They also agreed to continue negotiations to defend the interests of the archipelago’s citizens and to secure a new railway investment agreement.