Consell is moving to build regional alliances to gain leverage with the Exchequer by arguing for a less demanding deficit target, a concept known as the asymmetric deficit. Ruth Merino, spokeswoman for the Valencian Administration, announced recently that the Generalitat has entered discussions with some autonomous regions, including Murcia. The talks involve a mismatch between income and expenditure similar to Valencia, where the deficit substantially exceeds the government’s target. The forthcoming Council on Fiscal and Fiscal Policy will consider the feasibility of setting individualized targets for each region.
At this week’s CPFF, the group of autonomies approved a 0.1% open track, but María Jesús Montero signaled the possibility of creating separate tracks for each region within that figure. This approach had already been supported by Botànic and remains supported now. It is aligned with the stance of the Carlos Mazón Council. The Minister of Finance shifted responsibility to regional governments, describing the move as a zero-sum operation that could require some regions to tighten their budgets so others gain flexibility, a position echoed by Consell and Murcia. Negotiations among regions were encouraged, and Consell acted accordingly.
Both Carlos Mazón and his Murcian counterpart Fernando López Miras included a 0.3% deficit in their 2024 accounts, a figure three times larger than Moncloa’s. The gap amounts to 290 million in Valencia and 80 million in Murcia. Despite the financial volatility, Consell maintains that there are no plans to alter its accounts, and Murcia remains committed to the path toward financial stability.
These two regions are seen as among those most affected by the current financing system while still adhering to deficit targets. Mazón and López Miras, who had previously demonstrated strong cooperation, would broaden their united stance against the central administrator in Madrid, with whom they have shared interests on water and infrastructure projects.
Merino did not disclose other regional governments that were approached, which matters because keeping the deficit rate at 0.3% for Valencia and Murcia would require other regions to absorb any budget excesses. If differentiated deficits were allowed, the remaining autonomies under the common regime would face reductions close to 370 million.
The Minister of Finance criticized Montero for delegating the agreement to the regions, noting that Cristóbal Montoro’s administration in 2013 set the path for each autonomy when only one year featured personalized deficits. Merino asserted that all parties must fulfill their duties and that disagreements among communities would not be a justification for division, a sentiment Madrid’s Isabel Díaz Ayuso had already expressed at the Mazón summit held on Tuesday.
With the next CPFF date still undetermined, Consell keeps a close watch on Montero. Merino reiterated that the Generalitat’s budget reflects what the Valencians need and will remain aligned with that goal, while avoiding speculation about potential sanctions from the central government for ongoing negotiations. She emphasized that the process is ongoing and future developments will be assessed as they unfold.
We are willing to negotiate removal
On debt discussions, Merino did not rule out future bilateral talks with Moncloa aimed at negotiating amnesty. The prospect drew mixed reactions in regional capitals, with some voices cautious about concessions tied to territorial obligations. Merino stated that talks would be held with all necessary parties and that a serious and firm offer would be evaluated to determine whether attendance at the meeting would be warranted.
In keeping with the evolving fiscal debate, regional leadership emphasizes the need for clarity on deficit targets and flexibility within the national framework. The discussions are expected to shape budgetary paths for Valencia and neighboring autonomous communities, while the broader governance framework continues to navigate political and economic pressures from the central administration.