Dispute Resolution on Canary Islands 2025 Budget Law

The Canary Islands government and the Spanish central government have officially resolved their disagreements over specific aspects of the Canary Islands' 2025 Budget Law, as detailed in a recent bilateral cooperation agreement. This agreement clarifies how the provisions related to labor rights, health sector career progression, fiscal measures, and family tax deductions will be interpreted and applied.

Key Points of the Agreement

• The deal confirms that the labor law provision regarding the recognition of seniority for fixed-discontinuous workers will align with national legislation, including periods of inactivity.
• It assesses and resolves controversies around budget stability and public debt criteria from 2024.
• The agreement clarifies how health professionals' career levels should be understood within the framework of national health legislation, establishing a maximum of five career levels regardless of terminology.

Tax Benefits for Large Families

• The government commits to updating regulations so families with the necessary documentation can claim deductions of up to 796 euros, or more for families with disabilities.
• This resolution aims to smooth out administrative uncertainties and promote clarity for residents and public sector workers.

Significance

The agreement signifies a step toward enhanced cooperation between the regional and national administrations, ensuring stable governance and better clarity on how laws are implemented in the Canary Islands.