In the middle of the Conference of Presidents with Pedro Sánchez, the Valencian president Carlos Mazón sounded the alarm against a new short-term threat to the financial situation of the Valencian Community: the end of the extraordinary Autonomous Liquidity Fund (FLA). The instrument that has given financial air to the Generalitat for years to cover expenses on public services such as Health or Education in the face of the lack of sufficient income from the financing system is in danger, according to the PP baron.
In his appearance after the meeting, Mazón was surprised by the terms he used to ensure that the Government of Pedro Sánchez considers that instrument finalized. “We are terrified that in December the Government’s last measure did not approve and eliminated the extraordinary liquidity fund system”said Mazón, who repeated the word “panic” to emphasize his fear of what could happen without the money popularly known as FLA.
Beyond other issues surrounding regional financing, as the eternal demand for a change of model or condonationthe leader of the Valencian PP considered that this is an “urgent and express” matter due to the consequences it may have on the day-to-day life of the regional coffers.
The extraordinary liquidity fund, in the words of Mazón, “It’s what allows us to pay the bills. of our doctors, of our health treatments, of our schools and of our social services.” A financial tool, it is a line of credit, which in the Valencian caseone of the CCAA that receives the most due to its underfinancing, exceeds 3,000 million euros annually. The end of this financial lung would also come with a full increase in DANA expenses, which will once again increase indebtedness and the regional deficit.
The president of the Generalitat assured that the Government “is withholding more than 3,000 million euros from us if it does not recover and we definitively lose that fund”, and insisted that this money “allows us to compensate for the deficit we have for social policies and sanitary”. In an alarmist tone, he went so far as to assure that “it can mean the blockage and collapse of social policies in the Valencian Community”.
Condonation
Mazón referred to the debt forgiveness proposed by the central Executive and which will lead to a next Fiscal and Financial Policy Council in January as “a patch” despite the fact that several Autonomous Communities are in favor of including the Valencian Community in it. “Talking about a forgiveness in the case of the Valencia Community is as if the bank tells someone who has a mortgage that they will not have to pay for one month, but then they will have to pay for a longer time,” he stated. “If we continue entering less the problem will continue and it will only be a patch”insisted to once again consider the reform of the model that expired a decade ago as a priority.
“Without that we are not going anywhere, because the Valencian problem will continue to be the Valencian problem.” In addition, he has called for “a restructuring and debt forgiveness” and “while all this is happening” he has requested that a leveling fund be launched.
According to Mazón, “it is becoming consolidated that the Valencian case is an exceptional case.” “I see others wanting privileges and wanting quotas, or wanting bilaterality, or wanting to eat separately. I say, and I think they will totally or partially agree with me, that for quotas, for exceptionalities, for bilateralities and for unique cases, the Valencian,” he stressed.
Funds for DANA
The president of the Generalitat was also very critical of Sánchez and funds to alleviate the effects of DANA in Valenciaand that “the only solution that comes to mind is to take European funds from the rest of the communities and give them to Valencia.”
Mazón has been “concerned” about the precedent that he believes could be created, in the event that a catastrophe occurs in another territory and “the only solution the Government has is to remove funds from the communities.” In this regard, he has warned that they may end up “fighting” or “with winners and losers when the Government’s moral obligation is to put resources on the table,” he insisted.
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