Valencian Financing Debate: Structural Reform Demands Amid Higher Funds

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The Valencian Community is touting a significant lift in its next year’s funding as part of the state’s financial framework, amounting to 2,835 million euros. This marks a 26.5% increase over 2022. Yet, officials stress that this is not a lasting fix. A clear call has been made for a new, structural model of financing from the central government, articulated by the community’s spokesperson and Vice President during the plenary session. The message is consistent: short-term fixes won’t address the underlying funding gaps, and a durable solution is needed at the national level.

After the plenary, questions arose about the outcome of the Financial and Fiscal Policy Council, which included the Minister of Finance. The Consell’s representative described the assessment as positive and stated alignment with the council, while also signaling some disagreement with criticism from other autonomous communities regarding the financing framework. The regional stance remains that the central government provides extra funds to all regions, but Valencia contends it remains at a disadvantage and must continue to press for what it calls a matter of honor — addressing budget needs in health, education, and social services despite constrained resources. This perspective emphasizes the ongoing structural issue rather than short-lived adjustments.

The debate also highlighted how each Valencian citizen would receive 157 euros less than the national per-person average for 2023, a gap attributed to the varying speeds at which autonomous communities move and to population-based resource calculations. The state plans to allocate 2,676 euros per resident in Valencia, compared with a national average of 2,834 euros. The figures reflect different regional growth patterns and demographic factors that affect resource distribution, with the government signaling continued discussions on autonomy while defending the current approach.

Mas and Puig offered divergent viewpoints on the financing system. Puig, the head of Generalitat, argued that the central government has shown progress and urged Valencia to advance negotiations within the CPFF forum, insisting that increased resources could translate into stronger job creation and stronger welfare protections. He framed the forum’s work as a drive to resolve the core funding issue rather than stall negotiations, while stressing that more funding should enable broader social protections and higher employment standards. The overall thrust is that more resources would enable better outcomes for the job market and the social safety net.

During press appearances, Mas was also pressed about the intended use of additional central funds as the year progresses and into the next budget cycle. Consell representatives have suggested a broad and pragmatic approach to budgeting, noting that any extra income would be dedicated to meeting citizens’ needs during a year marked by inflation, higher fuel costs, and rising food prices. The aim is to keep public services robust and responsive despite economic pressures, ensuring core programs remain funded and operational.

Beyond the central topic of funding, attention turned to other fiscal priorities. The employers’ association and Consell have noted the necessity of addressing private sector payrolls and the broader economic ecosystem. The plenary approved a partial payment of 12.8 million to settle part of existing obligations, with an additional 10 million slated for approval soon. This step is framed as an effort to accelerate debt relief for aged care facilities and private employers, ensuring payroll continuity through the summer. The overarching goal remains to reduce waiting lists and sustain social services during difficult times, including ongoing health and addiction-related support built on post-pandemic realities.

The Valencian Community Business Confederation (CEV) has urged caution, arguing that the government’s offer for increased financing, though sizable, still leaves Valencia at the bottom in per-capita resources. CEV emphasizes that the increase could be used to push for a deeper reform of the financing model and contested the timing of reforms, warning against delaying systemic change once again. CEV’s president underscored Valencia’s continued disadvantage relative to other regions and called for a firm commitment from both government and opposition to resolve the financing model’s core issues.

Looking ahead, Valencia is projected to experience the most significant revenue increase among autonomies in 2023, yet it remains cognizant of persistent disparities in treatment relative to other regions. The leadership stresses that the solution must be durable and not merely a temporary adjustment, with a clear demand for government commitment and a political consensus that advances genuine reform rather than deferred promises. The focus remains on securing a financing framework that supports public services, fosters economic resilience, and ensures fair treatment for Valencia within the national system.

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