Scenarios for the reform of regional financing in Spain: Between technical principles and political preferences

In this article the system of regional financing in Spain is examined. After defining the basic principles of fiscal federalism and its relationship with citizens' political preferences, we discuss the limitations of the current model and the possible reforms under three scenarios of weak, intermediate and strong federalism. The system of regional financing in Spain is compared to that of four federal countries: Germany, Canada, US and Switzerland. A propositional perspective is adopted in order to make some policy recommendations.