Spain’s rescue of Catalonia and Valencia risks diverting the taxes those regions need to pay their debts, disadvantaging holders of more than $150 billion of regional debt. Spain collects income, sales, gasoline, tobacco and alcohol taxes on behalf of its regional governments, excluding the Basque country and Navarra. About half of the 60.3 billion euros gathered in the first five months of the year was then assigned to local states, Bank of Spain data show. Spain’s rescue of Catalonia and Valencia risks diverting the taxes those regions need to pay their debts, disadvantaging holders of more than $150 billion of regional debt. Spain collects income, sales, gasoline, tobacco and alcohol taxes on behalf of its regional governments, excluding the Basque country and Navarra. About half of the 60.3 billion euros gathered in the first five months of the year was then assigned to local states, Bank of Spain data show.

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