Plan + Cerca and the Alicante conflict: a year of municipal finance battles

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It has been a major clash between the Generalitat Valenciana and the Alicante Provincial Council in this mandate, and all signs point to a drawn-out confrontation. One day after the state agency approved the foundations of Plan + Cerca for the current fiscal year 2023 at its ordinary general meeting in March, Consell president Ximo Puig spoke this Thursday. The Municipal Cooperation Fund amounts to 10 million euros, a total plan that will distribute 50 million euros across municipalities in the Community.

allegation

The President of the Generalitat argued that the Cooperative Fund serves to strengthen the solvency and capacity of city councils and lamented the Provincial Assembly’s rejection, an institution that could become a major rival in the regional elections. On May 28, popular figure Carlos Mazón will join this plan, unlike lawmakers in Valencia and Castellón. Puig, in his remarks at the Municipal Forum organized by Levante-EMV from Prensa Ibérica, the same publishing group as INFORMACIÓN, recalled that the Generalitat created the aid fund for municipalities in 2017 because no prior government had done so. Even though it was approved in 2000.

Unanimous in the plan + close to the Provincial Assembly, yet stirred by anger and a clear election tone

The president of the Consell emphasized alliances between institutions to meet challenges and seize opportunities. He noted that the government has faced limited funding but has launched three additional municipal finance funds, distributing 330 million euros in recent years. The anticipated funds include the Anti-population, Tourist Municipalities, and Forestry Management funds, signaling an upcoming call for proposals.

The Diputación approved its alternative to the Cooperation Fund. Schedule + Close, announced just 24 hours before Puig’s statement, is the unanimously proposed plan. The provincial project carries 44.7 million euros in donations. The broader investment program, with a total mandate of 103.5 million, will support the investment and expenditure needs of Alicante municipalities. “I am pleased by the unanimous approval of a historic investment that reaches all our town halls and expands with nearly 50% more resources,” said Javier Gutiérrez, spokesman for the government team.

Following Puig’s statement, the People’s Party spokesperson Eduardo Dolón criticized the head of the Consell for trying to push the Cooperative Fund without dialogue and for overlooking smaller municipalities in the state. Dolón also noted that Plan + Cerca’s 44.7 million represents nearly the same amount the Consell has allocated to the entire Community, highlighting a perceived difference in funding between the two institutions.

argument

Puig’s announcement the day after Plan + Cerca was unveiled marks the latest chapter in a long-running debate. With Botànic in power, the Cooperative Fund was launched, and tensions with the Provincial Council intensified during Mazón’s tenure as chairman. An estimate from the PSPV suggests the province has lost a substantial sum in recent years due to the provincial government’s reluctance to participate in the project. This led many socialist mayors to demonstrate at the gates of the Provincial Palace on December 20.

The dispute between the County Council and the Consell over the Cooperative Fund even reached the Supreme Court, which agreed to process the PP’s appeal to defend state autonomy. Mid-January brought a setback when the Valencia TSJ dismissed the appeal and paused the case. The investment project would have allowed the provincial agency to avoid allocating 13.4 million euros of its 2023 budget to the fund promoted by the district executive.

European funds extended to 360 municipalities. Puig used a speech to highlight the increase in the Cooperative Fund and encourage municipalities to seize opportunities offered by the European NextGeneration funds. He noted that more than 360 municipalities already have a project funded by this program. In this context, the Generalitat has assembled a team of over 300 experts in European fund management to provide hands-on assistance to anyone seeking funding.

Finally, the plan includes a goal to pass a metropolitan-area law in the next legislature, which would require consensus among city councils and promote economic and social cohesion for citizens. The Generalitat President also stressed the importance of sparsely populated areas and mid-sized cities as focal points for various investment and improvement programs promoted by the Consell.

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