The council faced another setback in the protracted dispute with Alicante County Council over the Municipal Cooperation Fund. The Contested-Administrative Chamber of the High Court of Justice of the Valencian Community rejected Ximo Puig’s appeal submitted by the Generalitat following the order issued in early December that paused the investment project. As a result, the provincial institution was released from the obligation to allocate 13.4 million of the 2023 budget to the fund mandated by law. The new order from the TSJ highlights several core arguments that the Provincial Council, led by Carlos Mazón, has consistently used to challenge the Consell’s investment plan from the start.
In this new ruling, the court notes that the interests at stake extend to municipalities and other stakeholders, and stress that none of these groups interferes with the procedure or presents evidence of discrimination or maladministration that would need correction. The judges emphasize that the case tests the legitimate interest of preserving the Provincial Assembly’s autonomy in managing its resources, and that the appeal is brought by the organization itself, the Provincial Assembly.
Varapalo to Consell: Supreme Court of Justice agrees with PP and suspends Cooperation Fund
Yet the TSJ makes clear that the measure was designed to support an injunction for now, rather than decide the substance of the matter. The Generalitat’s objective is to prevent a scenario that could harm the Provincial Assembly if the appeal succeeds and the contract is ultimately suspended, a process that the same chamber acknowledges could take years to resolve. The court cautions that if the injunction is not issued and the appeal ends up favorable, the suspension of the contract and the obligation for the Provincial Council to fund the program could force the Provincial Assembly to contribute large sums beyond its powers, given the long lag in a final resolution. The court notes that such a result would divert substantial resources away from the Assembly’s core duties and contradict its budgetary prerogatives, unless interim measures are in place to limit potential harm.
On the other hand, the magistrates stress that the Provincial Council has certain duties that include providing direct support to municipalities. They underscore the institutional role of the Provincial Assembly, highlighting its constitutional store of authority to grant aid and subsidies to local municipal units.
With these considerations, the TSJ asserts that local autonomy remains within the law. The Provincial Assembly has the constitutionally guaranteed financial autonomy to access and manage its own resources, enabling it to fulfill its budgetary obligations and adequacy standards. The decision also makes clear that the matter could be appealed again.
There is room for further action by the Council if it chooses to pursue it. This ongoing legal back-and-forth underscores the tension between regional institutions and the central strategy for municipal funding, a dynamic that continues to shape how local governance is financed in the Valencian community and beyond.