The government led by Carlos Mazón is moving to shrink the network of public bodies tied to the Generalitat. This plan is in its early phase, yet it already signals a broader effort to streamline the public sector. The Consell intends to wind down up to ten inactive or fading institutions and organizations. The goal is to cut costs and allocate resources more efficiently, aligning with the regional administration’s stated priorities.
During his campaign, Mazón highlighted promised tax relief, streamlined bureaucracy, and the construction of up to 10,000 officially protected homes. Reducing the size of the instrumental public sector has been a recurring theme. The current review evaluates whether each company and foundation should continue operating, undergo restructuring, or be eliminated, with essential functions transferred to general directorates where needed.
This transition, with limited public detail released so far, will begin by closing several entities that recently ceased activity. Finance, Economy and Public Administration ministry sources note that the measure will affect five agencies created by a previous administration and now inactive.
150 million in cuts to public companies without eliminating any entities
Valencia Energy Agency (AVE), a subsidiary of the Valencian Institute for Business Competitiveness (Ivace), has been designed to promote an energy model transformation. Alongside it, the Generalitat is pursuing the Agency for Digitalization and Cybersecurity (ADiC) with aims to advance digital transformation and strengthen cybersecurity.
A third agency under discussion is Valencian Food Information and Control Agency, introduced amid the energy and economic emergency triggered by the war in Ukraine. The Valencian Waste and Circular Economy Agency is being considered for waste management and related initiatives, with the Climate Change Agency and Valencia’s promotional activities also under review. The Valencian School of Public Administration (Evap) is slated for elimination, with its functions to be absorbed by the General Directorate of Public Services.
Beyond these five, four foundations are poised for closure. The Light of Images Foundation awaits liquidation and deregistration; the Art Foundation faces creditor-account cancellations with a €25.8 million impact; the Jaume I El Just Foundation will see asset inventories and loan accounts settled, totaling €12.1 million; and the Valencian Community Port Studies Institute and Cooperation Foundation will proceed with liquidation balance sheets.
The Finance Ministry accuses the previous regional leadership of failing to implement mandated closures and of attempts to create new entities in their place.
323 million euros cut in the budget
The Consell’s plan to shrink the public company network is mirrored in the regional budget for the current year, where funds for this area were reduced by 7.7 percent to 3.85 billion euros. The 323 million euro cut signals ongoing restructuring efforts that aim to recalibrate public expenditure at multiple levels.
After closing inactive or disappearing institutions and foundations, the next phase involves reorganizing active ones. The Ministry of Finance, Economy and Public Administration states that autonomous departments are carefully examining each organization and its staff to determine what changes are necessary.
Among those under scrutiny is the Valencian Agency for Innovation (AVI), part of the Alicante-based Department of Innovation, Industry, Trade and Tourism. So far, no public action has been announced against AVI, but measures are anticipated in the first quarter of this year.
Overall, officials emphasize that the forthcoming steps will focus on strengthening the efficiency and alignment of active agencies, with decisions driven by assessed needs and available resources rather than political expediency.