The discussion centers on the Balearic Islands and the Valencian Community’s Treasury, emphasizing the need for unity, accountability, and a shared sense of responsibility among all autonomous communities and the People’s Party to unlock the financing reform. The Balearic minister warned that while it’s easy to label this as a government issue, it remains everyone’s concern, cautioning that institutional tensions only cloud the debate. He noted that the current tripartite leadership, guided by the PSOE, has shown stability for Spain and its regions amid the clamor from Madrid and the heated discussions surrounding the project. The remarks were echoed during the session in the M-30 corridor, shaping the afternoon’s discourse.
At the Valencia-Balearic summit, held on Wednesday and Thursday, Arcadi España, the Finance Minister for the Generalitat, and Iago Negueruela, head of the Government’s Economic Model, outlined the progress and priorities of regional cooperation in financing. The focus of the final roundtable, titled “Local solutions to global crises: regional response,” was the path to a reform that can withstand scrutiny and diverse interests. Both sides stressed the importance of ongoing collaboration and called for constructive responsibility from other regions and political parties to move forward.
“It’s time for serious discussion and for all of us to agree, sit at a table and come to an agreement,” declared the Balearic minister. He added that the Balearic Islands operate in a differentiated framework that recognizes its specific circumstances, including parochial factors that must be considered in any reform.
Similarly, Valencia’s representative argued that reforms should account for some communities more than others, ensuring equality and avoiding forced borrowing by the Generalitat if terms become excessive. With experts confirming the diagnosis, the goal is to reach a robust and effective model that ends the current stalemate where some regions appear comfortable with the status quo.
“French heart and German body”
Responding to questions from reporters, Spain affirmed its continued demand for funding and underscored the need for broad consensus in a shared-responsibility dialogue. It also highlighted the necessity of understanding the nature of decentralization in Spain, described as a country with a “French heart, German body,” and cautioned against inflammatory rhetoric that harms political discourse.
On taxation, the Balearic minister defended the strategy of combining tax relief with targeted aid, while the Valencian minister supported selective reductions. The People’s Party argued that sweeping tax cuts translate into substantial utility reductions for households and businesses, framing the issue as a matter of affordability for citizens.
A more organized and ‘label-free’ tourism
On tourism, the Generalitat’s recent rate adjustment in the Balearic Islands remained on the table as a topic for future discussion. Negueruela endorsed prudent regulation that prioritizes quality over the expansion of hotel capacity while maintaining flexible labor practices. He argued for an adaptable model that avoids rigid entry and exit barriers within the sector and rejects exploitative tourist practices. Spain’s broader plan is to remove outdated labels from tourism and align strategies with evolving demand to sustain recovery.
In parallel, both administrations highlighted social dialogue as a core hallmark of governance. They cited the governments’ responses to the pandemic and the energy crisis as proof of resilience and stressed that the Balearic and Valencian economies are on track to recover more quickly than anticipated. The dialogue, they asserted, will continue to drive progress across multiple sectors.
Negueruela added that the two autonomous communities have clearly communicated their needs to the Peripheral Government and emphasized that, despite two severe crises, there has been no broad social tension in either the Balearics or Valencia. The shared stance is one of measured, collaborative action aimed at delivering stability and sustained growth for all.