Consell is pressing the Government to establish a unique budgeting rule that would let it drift above the regional deficit target when compared to other autonomous communities. This approach, described as asymmetric, open, individualized, or la carte, is a request from the Generalitat to counter more than a decade of underfunding in Madrid. The premise is simple: by consuming fewer resources than entitled, more leeway is sought to hit red numbers throughout a fiscal year. This demand has echoed through governments, from Alberto Fabra’s administration (PP) to Botànic, and now Carlos Mazón appears ready to wage the same debate again.
The catch is that for the Valencian Community or any other region to enjoy this extra margin, another administration must concede and tighten its belt as well. Those involved in these negotiations acknowledge that this form of solidarity is politically intricate to articulate. In fact, there has been only one instance of an asymmetric deficit, decided more than a decade ago after challenging talks between Mariano Rajoy’s then-Finance Minister Cristóbal Montoro and regional administrators. After that episode, Pandora’s box stayed closed, and every region was granted similar capacity for imbalance, regardless of how they were treated within the financing framework.
The Fiscal and Fiscal Policy Council (CPFF), the arena where regions map their clear path with the state, met a few weeks back and set a shared objective for all levels of government. Of the total 3% that the government pledged to the European Union, the State allocates 2.9% and leaves the remaining tenth to the autonomies. The Valencian Community views this distribution as unfair and, alongside Murcia, seeks not to alter the 0.3% target in their 2024 budgets. The Generalitat wants the State to assume the imbalance.
Yet Minister of Finance María Jesús Montero stated after the CPFF meeting that in the event of an asymmetric deficit, the margin would always be within 0.1% for the autonomous-communities subsector. That means any gains for Valencia and Murcia from extra deficit would need to be offset by other regional governments. Experts present say this stance is an overreach that would significantly shrink chances for success.
The standout beneficiary in 2013, the only year with an asymmetric deficit, was the Community itself. A deviation of 1.3% was planned for the subsector, and Valencia’s then-Minister of Finance, Juan Carlos Moragues, added an extra 0.3 percentage points (1.6%) for the Generalitat. Others, like Madrid or Asturias, had 1% remaining. Even the governing party managed to win Montoro’s support, though he later described the “war of numbers” that would have to be waged against other communities to reach a different target.
The regional secretary, Eusebio Monzó, who returned to office after being helped by Carlos Mazón, argues that the ministry should take the lead in setting goals for any autonomy, acknowledging the political turbulence such a move could trigger. He insists that a formal agreement between communities is unsustainable and overly complex, yet he calls for leadership from the central government. Monzó also emphasizes how difficult it is for a regional government to relinquish its right to deviate from its budget.
“Giving 0.3% to all communities except Valencia and Murcia isn’t the same thing. The logical approach would place the burden of this difference on the Government, especially when the plan starts from 2.9% of the total 3% and communities cover 30% of the costs,” Monzó notes, clarifying that the budget deficit is part of the budget accounts. He adds that this isn’t a political test, but a justified demand to address chronic underfunding.
Vicent Soler, once the Botànic-era Minister of Finance, experienced firsthand the reluctance of successive governments to negotiate personal deficits, even as socialists blamed autonomous regions. “The real issue is that regions favored by the funding system often vote against asymmetries in income, viewing them as a reward for noncompliance. It is the autonomies that must yield,” he argues.
Soler has previously collaborated with María Jesús Montero at the ministry. At that time, the general secretary of finance was Diego Martínez, a PhD in Economics who later taught at Pablo Olavide in Seville and conducted research for Fedea. Martínez attributes the persistence of the 2013 financing debate to the persistence of the asymmetric deficit concept, noting that Martínez, then a high-ranking official in the Andalusian Government, had asked Montoro for this arrangement.
“A deal on an asymmetric deficit is even more intricate than reforming the financing system, because it is a zero-sum game that cannot reward underperformers,” he observes. Still, Martínez defends differentiated targets on grounds of “equity and feasibility” and recalls Airef’s support since 2016. He also believes Montero must step up and place the percentages on the table.
[Citation: CPFF discussions and regional finance records; historical accounts of 2013 negotiations and the Montoro-Moragues alignment.]