The extension of budgets paralyzes the Valencian agenda: investments, debt and financing

Pedro Sánchez's decision not to present budgets for 2024 and to extend those for 2023, conditioned by the Catalan elections, will have a direct impact on Valencian aspirations to resolve two pending issues that are part of the so-called "Valencian agenda" : the improvement of State investments, the formulas to improve regional financing and the elimination of debt.

Oliver Thansan
Oliver Thansan
14 March 2024 Thursday 10:31
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The extension of budgets paralyzes the Valencian agenda: investments, debt and financing

Pedro Sánchez's decision not to present budgets for 2024 and to extend those for 2023, conditioned by the Catalan elections, will have a direct impact on Valencian aspirations to resolve two pending issues that are part of the so-called "Valencian agenda" : the improvement of State investments, the formulas to improve regional financing and the elimination of debt.

This is recognized by business sources and also by the Generalitat Valenciana, whose Minister of Finance, Ruth Merino, stressed yesterday that, in addition, the autonomous communities will receive the same deliveries on account of the financing system as in 2023.

The Valencian Administration, and the economic sectors of this autonomy, hoped that new State budgets would allow maintaining the path of growth of the Government's investments that were already perceived in 2023, despite the fact that they did not reach the Valencian aspirations and that they relegated Alicante to one of the last positions.

But even more, it was hoped that the Government would face a change in the financing model or activate palliative measures, such as a leveling fund, until a new model was available, as FEDEA also defends. This last possibility had been ruled out by the Minister of Finance, María Jesús Montero, despite being a demand from the majority of Valencian parties and civil society.

The refusal to present a budget project due to the lack of support from the pro-independence parties was harshly criticized yesterday by Carlos Mazón's executive. Ruth Merino, who is also spokesperson councilor, denounced the "weakness" of the Government because she "compromises the stability of the legislature by depending on the support of the Catalan separatist parties." And she demanded that Pedro Sánchez "not evade his responsibility and continue with the preparation of the budgets for 2024."

The councilor valued that "it is a constitutional obligation of the Government to present PGE and it is not something that depends on the will of the Government and much less on political tactics. The risk of not being able to carry out the accounts cannot serve as an excuse for the government to evade its constitutional mandate". She stated that Sánchez's decision means that the Government is not going to comply with the requirement "to enable a temporary leveling fund that allows underfinanced communities to have the same resources as the average while the reform of the financing system is addressed." .

Regarding the payments on account of the current financing system, he commented that when the 2023 accounts were extended, "the resources that the autonomies receive monthly to finance health, education and social services have not been updated according to the increase reported by the Ministry of Treasury to the autonomous communities last December with several months of delay in the last Fiscal and Financial Policy Council".

Hours before, the Valencian president commented in Les Corts on the need for Pedro Sánchez to convene the conference of presidents or the Fiscal and Financial Policy Council. And he regretted that the President of the Government "resigns from presenting budgets" when "there are provinces like Alicante that continue to be mistreated."

In addition to the issues mentioned, the electoral cycle will also hinder the will of President Carlos Mazón, to which Minister Teresa Ribera committed, to activate working groups with the autonomies involved to address the regulation of the Tajo-Segura transfer. . This is another of the priorities of the so-called "Valencian agenda".