The Valencian Community will not be able to direct its public debt up to the specified reference levels. By the tax authorities in the absence of any reductions by the state or very positive reform of the financing system. This is the main conclusion of the report published yesterday by the Fedea on obligations in Spain and the autonomous communities. Valencia confirmed as the relatively indebted region in the country for exactly scarce resources taken from the current distribution model.
sacrifice In his report, he calculates the “financial efforts” that each autonomous region must undertake in a given time period (5, 10 and 20 years) in order for the public debt to reach certain ratios to its GDP, and concludes that these efforts must be “”. A significant size for the country”. But in the case of the Valencian Community, they are much less likely to get to it, according to Diego Martínez, one of the study’s signatories, “almost impossible” because it starts from a much more unfavorable situation as autonomy is the GDP of the whole State’ A larger debt over the past year, a situation that a report this year attributed largely to underfunding by the same institution, as 75% of that debt was attributed to maltreatment received by the current model that ended in 2014.
The most recent official data at the end of 2021 show Generalitat’s liabilities at 47.8% (over 53,000 million), with no other autonomy close to 40% and only four of them exceed 30%. Fedea raises the annual financial results that each community will need to fix its deficit to reach 13% and more modest levels (19.5% and 26%), the maximum rate set by the stability rules for these companies.
Those starting from a more advantageous situation (Madrid, Navarra, Canary Islands and Basque Country) can even reach this 13% target by giving a deficit, so it is “completely acceptable” for Fedea to adapt. But Generalitat will need to reach unprecedented surpluses to do the same, something the economic research establishment doesn’t see as viable. “The most indebted autonomous communities (a group that includes the Balearic Islands, Murcia, Catalonia, Castilla-La Mancha and the Valencian Community) will need surpluses of a magnitude unknown in their historical record and far from any feasibility,” the report summarizes.
This is a result that can be seen more clearly when we go into the details of the report, which legitimizes the claim that Valencia has committed cuts from the state in parallel with the reform of the financial system. Fedea estimates that Generalitat will need to close these 20 consecutive years with a 0.2% surplus to fit in the most conservative scenario with 26% debt on GDP (twice what is allowed) and the laxest calendar (20 years). % To achieve this in ten years, it must record ten years with a positive balance of 1.1%, and if the duration is five years, the required primary balance must be 2.7%.
To contextualize the complexity of the challenge, it should be noted that according to Fedea, the Community of Valencia has recorded an average deficit of 1.7% per year over the past 20 years; this is light years away from the green numbers needed to fix public debt. to the levels required by Brussels. That’s why Martínez confirms to this newspaper that restructuring would be the optimal solution for Valencia’s debt. If not, only a system reform “very conducive to autonomy” or some changes in income and expense items that change them to “brutal dimensions” can fix the debt.
The elite body of European funds starts with only ten officials
Where I say 270 officers, I say ten. Significant reduction in Generalitat’s public employment proposal to create an official body specializing in the management of European funds, more than 4,000 enrollees (paying 13.76 euros) and 2,200 entered this test. When the consolidation plan was launched before the summer, sources from the Public Function assured this newspaper that a joint request for 267 positions had been registered after an inter-ministerial poll, but now Generalitat claims it is filling vacancies as the process continues. It offers only a dozen places although they add that the (postponed) election is happening and the bag is open. The change has caused the anger of the applicants and they are investigating whether it is appealable from the Autonomous sector of UGT Serveis Públics and suggest they will seek clarification from the Generalitat.