Finance Minister María Jesús Montero stated that after the summer a new proposal would be sent to the autonomous communities. This proposal aims to adjust the financing framework to a population-based model requested by the Valencian Community and to begin addressing long-standing inequities in fund distribution. The plan is expected to refine the initial approach based on regions’ claims filed earlier in the year. It is noted that the reform would not be debated in the current legislature, leaving full consideration for the next term. In the meantime, the most underfunded regions, including Valencia and Andalusia, are not anticipated to receive additional funds or the leveling mechanism some communities have pressed for, according to the minister. The view is that regions governed by the PP will need to be reassessed first, a position that shapes expectations across administrations.
The Valencian Government welcomed the announcement, viewing it as a step toward easing a bottleneck and a matter of significant interest for Valencian stakeholders. Yet observers warn that any agreement will likely be difficult in the near term. For a new model to pass in Congress, consensus is required not only among regions but also across party lines, a feat that appears unlikely amid the current pre-election climate. The main opposition in the community has expressed skepticism regarding the minister’s assurances.
During comments on January 31, the Autonomies were urged to present their case to the Treasury regarding the adjusted population financing calculation. In an interview with EFE, Montero stated that the Treasury did not remain idle, noting that transfers to communities and regular payments continued each year. He highlighted how extraordinary resources allocated during the pandemic had been used, and he criticized regional leaders for clinging to a funding model that caps allocations according to existing rules.
At the most recent Fiscal and Financial Policy Council meeting, Montero argued that inter-regional tensions persisted, with uneven positions among PP-led areas in seeking a population-adjusted funding formula. He admitted that the proximity of elections did little to ease these tensions and added that political considerations were shaping responses.
equality
The socialist Finance Minister Arcadi Spain welcomed Montero’s move, saying it advances the reform process by addressing regional claims brought to the latest Financial and Fiscal Council. He added that autonomous communities should support the changes and recognize that this is about equality across Spain, not just about territorial interests.
Mireia Mollà, Minister of Agriculture and Ecological Transition from Compromís, commented that a broad, consistent agreement is essential. She stressed that recognizing chronic underfunding and the resulting debt requires agreements that unify regional and party positions in Congress, aiming for convergent outcomes that reflect shared priorities.
Carlos Mazón, head of the Alicante Provincial Council and leader of the PPCV, voiced doubt about the minister’s announcement. He suggested that a cautious approach was prudent given past doubts about trust in higher authorities and noted that no official outreach from the Ministry had been made yet.
In truth, more than six months have elapsed since regional bodies submitted their funding requests, and no formal response has been issued. Across the Valencian Community, virtually all parties aligned except the far right, uniting to press the issue together. The persistence of this unity remains to be seen through the upcoming political process and elections.