expense policy
A legal setback hit the Generalitat as the Fourth Contested Administrative Affairs Office temporarily halted the Alicante provincial government’s plan to contribute 13.4 million euros to the Municipal Cooperation Fund for 2023. The pause came as the high court weigh the larger battle between the regional leadership and the provincial assembly, with the party in power concentrating on budget control during an election year. The regional vice-president asserts that the court order defends provincial autonomy against the influence of Ximo Puig and his associates, while a local government director general laments what he calls ongoing marginalization of Alicante towns and indicates an appeal will be pursued. Source: Eduardo Dolón / Toni Such.
The Alicante Provincial Assembly, led by the People’s Party with support from Ciudadanos, moved last October to seek a precautionary suspension of the Cooperation Fund by appealing to the TSJ. The fund would require reallocating 13.4 million euros from the 2023 budget to be distributed to provincial municipalities. A legal review warned that both the Consell agreement and the referenced law breach the Constitution and the Autonomy Act, prompting the appeal. Source: Provincial Assembly legal services.
In essence, the court accepted the request for a temporary halt to the funding obligation to avoid potential irreparable damage to the plaintiff should the unconstitutionality claim prevail. The decision leaves the core dispute to be resolved later by the Constitutional Court. Source: TSJ ruling summary.
Provincial budget implications
The judges noted that forcing the 13.4 million euro payment would disrupt the 2023 expenditure plan for Alicante’s municipalities. The move is viewed as altering resource distribution and limiting the Provincial Council’s capacity to meet local financial needs. The issue frames a broader debate about aid for municipalities that have tighter budgets and fewer resources. Source: TSJ opinion.
The court emphasized that compensating for potential damages is not accepted upfront. As the 2022 fiscal year closes, the anticipated deduction from the 2023 budget due to the disputed agreement is a factor, given the timing of budget preparation. The ruling hints that municipalities might rely on injunctive relief to secure needed financing for essential services. Source: TSJ commentary.
Provincial Council requests suspension of the Cooperation Fund
For these reasons, the court ordered a stay on the execution of the challenged agreement. The Provincial Assembly, under the PP leadership and with Ciudadanos backing, has secured an early advantage in what is framed as an institutional conflict with the regional government. The decision is portrayed as affirming local autonomy against external control. Source: Court summary.
Eduardo Dolón stressed that the precautionary suspension signals judicial support for municipal autonomy against attempts to centralize power within the Generalitat. He argued that smaller municipalities benefit most from the Provincial Assembly’s distribution system, underscoring the institution’s priority. Dolón urged Ximo Puig to adjust his political approach and reiterated a willingness to pursue dialogue. Source: Dolón remarks.
Source and perspective
Toni Such questioned the fairness of the distribution, arguing that Alicante’s municipalities are disadvantaged by the current system, while a Consell representative defended the cooperative fund as a matter of justice and impartiality. The regional authority indicated it would pursue an appeal. Source: Such statements.
The authorities prepared two budget scenarios for 2023: an original plan without the 13.4 million item and a second plan that would include it. The judge’s decision to suspend the contribution temporarily leaves room for the provincial body to adopt the original version should the appeal proceed and prevail. Source: budget planning notes.
The case shows a stark clash between regional ambitions and provincial responsibilities, with the courts acting as a check on how funds are allocated in a tight fiscal environment. The ongoing dispute highlights the priorities for municipalities seeking reliable financing for public services. Source: Court documents.