Regional Budget Talks Shape Tax Reform and Investment Strategy in Valencia

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Ximo Puig, leader of the Generalitat, invited labor unions and business associations to join in shaping the regional budget. The aim was to gather proposals that could be discussed and, if appropriate, incorporated into the final document. This gathering, which marked another step in the consulate’s commitment to tax reform, took place during a coordination session of the social dialogue desk. The focus was on measures designed to boost investment by companies and strengthen the regional economy.

The meeting drew together key figures from across the regional government and its economic partners. Salvador Navarro and Rafa Climent, vice-presidents of the Generalitat, were present alongside Aitana Mas and Héctor Illueca, ministers of Finance and Economy. Arcadi España and the president of the Valencia Community Entrepreneurs Confederation also attended, as did regional secretaries of major labor unions, Ana García and Ismael Sáez, representing CC OO and UGT respectively.

Puig emphasized the objective of inviting social stakeholders to participate in next year’s budget process and to contribute their viewpoints on financial reform. He explained that the principal goal of the reform is to help middle- and lower-income families manage inflation and the energy crisis, while remaining open to a fiscal policy that supports business investment. He described the approach as a precise, surgical intervention that can address both the needs of households and the incentives for business growth.

The session also reviewed how effectively the Generalitat has implemented various programs launched to mitigate the pandemic’s impact and stimulate recovery. More than 1,000 million euros have been allocated across initiatives such as Covid-related relief, Resitir, and Resist Plus. Of the fifty measures in the Reactive Plan, roughly two-thirds have been completed to date, with many of the accomplished actions directly targeting inflationary pressures and the cost of living. The discussion highlighted areas where execution has accelerated and where adjustments may be needed to ensure faster relief for citizens and more robust support for businesses.

Participants explored the interplay between fiscal reform and regional competitiveness, examining how new tax measures could produce a more predictable environment for investors while preserving social protections. The conversation underscored a balanced strategy: pursue revenue stability and lower burdens on families during challenging times, yet maintain a framework that encourages entrepreneurship and investment in key sectors. The overall mood was collaborative, with a shared sense that informed input from diverse social agents could strengthen policy design and implementation in the months ahead.

Several attendees noted that the reforms under consideration are not merely about revenue collection but about shaping a more transparent and efficient public finance system. By aligning tax policy with economic growth, the Generalitat hopes to create conditions where companies can allocate resources toward innovation, hiring, and productivity improvements. The discussions set the stage for ongoing dialogue, ongoing revisions, and continued collaboration between government, unions, and industry groups as regional budgets are refined for the coming year.

In closing, Puig reaffirmed his commitment to a participatory budgeting process. He urged social actors to submit concrete proposals and participate actively in the debate about fiscal reform, with a view toward delivering a budget that strengthens households’ purchasing power while sustaining a dynamic, investment-friendly business climate. The meeting concluded with a shared conviction that thoughtful, well-communicated reforms can contribute to economic resilience and social cohesion in the Valencia region.

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