The war in Ukraine has driven up energy costs and production expenses in ways that ripple through households and businesses alike. In response, the Treasury highlighted a rapid policy move by the Generalitat to roll out a €944 million package designed to guarantee essential support as prices soar and liquidity tightens for sectors hit hardest by inflation. This initiative reflects a deliberate effort to shield the regional economy from the most disruptive cost pressures while ensuring firms can continue operating during a period of heightened uncertainty for energy markets and global supply chains.
Nevertheless, European regulatory constraints have so far prevented the Consell from opening certain direct aid channels worth €45 million for the self-employed and from funding gas-intensive industries with a €50 million measure. Following approval from Arcadi Spain and the IVF working capital line that permits zero-cost financing up to €100 million, the Generalitat argues these tools can be quickly deployed to Valencia’s productive fabric. The objective is clear: move from planning to implementation as Brussels grants final clearance.
According to regional officials, many Valencian businesses are struggling to absorb higher energy prices and rising input costs. The knock-on effects touch fixed costs and payrolls, complicating daily operations and long-term planning. The Generalitat stresses that its agile management approach is aimed at delivering resources immediately to those most in need, helping firms stay solvent and preserve jobs during turbulent times.
Complementary aid aligned with national policy
To strengthen its position, the Generalitat is preparing a line of direct support worth €300 per self-employed individual, capped at €45 million in total, to offset inflation-driven cost increases. The government notes the intention to ensure broad-based access so that all affected companies can receive comparable relief. In addition, a dedicated package for gas-intensive sectors, including applications from firms such as frit and enamel producers, could total up to €50 million, with allowances up to €400,000 exempt from the central government’s broader aid framework.
Beyond targeted grants, the Generalitat plans to approve a working capital facility of up to €100 million with zero interest. This credit line, offered through the IVF program, is designed to support companies whose turnover has been negatively impacted by the energy shock and the wartime environment. The aim is to safeguard the liquidity of viable businesses facing sudden revenue stress and to sustain the regional economic fabric as markets adjust to higher energy prices.
Valencian authorities are coordinating with trade unions, self-employed representatives, and employer associations to finalize the aid decrees. The proposed measures are expected to be formally approved in the coming weeks, with the objective of delivering timely relief to the most affected sectors and ensuring a coherent, scalable response across the regional economy.
Cited officials emphasize that the urgency of these instruments lies in maintaining business continuity, protecting jobs, and stabilizing local supply chains against ongoing price volatility. By combining direct assistance with accessible financing, the Generalitat seeks to reduce the financial strain on small firms and maintain productive activity while broader EU processes proceed toward final validation.
In summary, the Valencian administration is pursuing a balanced mix of immediate cash aid and cost-free financing geared toward the self-employed and energy-intensive industries. The plan reflects a pragmatic recognition that rapid, well-targeted support can preserve competitiveness, safeguard livelihoods, and strengthen the region’s economic resilience during a period of persistent energy and inflationary pressure. The approved and pending measures will be implemented in steps as Brussels completes its review, with ongoing dialogue established with social partners to align the relief package with local needs and long-term policy goals.