The Foral Council of Bizkaia defends its tax reform proposal with incentives for private health insurance, while the PSE-EE labels it 'neoliberal'. The PNV calls for a focus on economic challenges and to avoid 'sensationalism'.
The Foral Council of Bizkaia stands firm on its tax reform proposal, which includes bonuses for private health insurance, despite the rejection from its government partner, the PSE-EE. The general secretary of the Basque socialists, Eneko Andueza, has described the initiative as 'neoliberal' and warned that the PNV is diluting the social character of Basque taxation.
Bonuses for health insurance: the point of friction
The reform, presented in June 2026 by the foral deputy of Finance, Itsaso Berrojalbiz (PNV), aims to attract companies and qualified professionals to Bizkaia. Among the measures is the deduction for health insurance, which has caused discontent within the PSE-EE. Berrojalbiz defended the project at an event in Madrid before major corporations, with explicit backing from the CEOE.
The foral deputy insisted that the goal is to 'increase the competitiveness of the economic fabric' without undermining the progressiveness of the system. It also includes benefits to combat the housing emergency, as she explained at a press conference. However, the PSE-EE believes these bonuses benefit higher incomes and undermine the public health system.
Eneko Andueza: 'The PNV flirts with a national priority that would dilute the social character of Basque taxation.'
The PNV calls to move beyond 'noise' and 'sensationalism'
Berrojalbiz responded to the criticisms by calling for a focus on the economic challenges of the territory. 'We must not get distracted,' she emphasised, urging to move past the 'noise' and 'sensationalism'. The deputy recalled that the project has been 'worked on' with the socialists within the foral government, where both parties share responsibilities.
For its part, EH Bildu, from the opposition in the General Councils of Bizkaia, has also expressed its rejection. It believes the initiative benefits high incomes and harms the public system. The abertzale coalition was not directly mentioned during the press conference, where Berrojalbiz reproached the 'war-like' tone without explicitly referring to any group.
The foral deputies of Finance from Álava and Gipuzkoa, Itziar Gonzalo de Zuazo and Itziar Agirre, present at the same appearance, declined to comment on the controversy unfolding in Bizkaia. Both managers share the same political affiliation (PNV) but operate in different foral contexts.
Precedents and processing: the path to the General Councils
Taxation in the Basque Country is governed by the economic agreement, a system of autonomy that allows foral councils to collect and manage their own taxes. Bizkaia, with this initiative, exercises its regulatory capacity without needing to coordinate with Álava or Gipuzkoa, although the three territories usually seek harmonisation.
In 2025, PNV, PSE-EE, and Podemos reached a joint agreement for all of Euskadi that included, among other measures, the creation of a tourist tax. That pact demonstrated that the socialists were willing to support tax reforms, but the current proposal, more ambitious and with a marked focus on attracting investments, breaks that previous consensus.
The controversy recalls other debates in autonomous communities regarding tax deductions for private insurance. In the Community of Madrid, for example, similar bonuses exist. However, the Basque foral framework grants Bizkaia greater leeway to adjust taxes without resorting to the General State Administration.
The processing of the regulation will begin in the General Councils of Bizkaia, where the foral government, formed by PNV and PSE-EE, needs the support of at least part of the opposition or its partners to push it through. Although the socialists govern in coalition, their statements against it open the door to complex negotiations in the Biscayan chamber.
For Bizkaian taxpayers, the reform could mean a tax relief if the bonuses for health insurance are ultimately approved. However, the political debate could delay its implementation. The General Councils are expected to discuss the proposal in the coming months, with an uncertain outcome.
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