Andalucia And Valencia Join Forces On Regional Financing Reform

The centre-right president of Andalucia and his socialist counterpart in Valencia have formed an unlikely political alliance to secure regional financing reform as the Andalucian leader maintains the region is losing out on four million euros every day under the current system.

The Partido Popular (PP) President of Andalucia, Juanma Moreno, has joined forces with the PSOE President of Valencia, Ximo Puig, to secure regional financing reforms. Both autonomous communities claim they are missing out on billions in funding from Madrid under the current system.

Puig has accepted an invitation to travel to the San Telmo Palace in Sevilla, the seat of Andalucia’s regional government, in September, in a move that has surprised observers as Spain’s political environment becomes ever more heated.

Puig said on June 22, “Institutionality is above partisanship” and he pledged that he and Moreno will “work together” to achieve the national-level reforms.

“The interests regarding the financing of the Valencian Community are quite consistent with those of Andalucia. The autonomous communities are a fundamental part of the state, the presidents have to look far beyond partisanship. I have always said that I represent all Valencians, not a specific party,” he added.

Puig and Moreno met on the side-lines of an economic forum in Barcelona last week just hours before Moreno travelled to Madrid for a one-on-one meeting with Prime Minister Pedro Sanchez.

According to Moreno, Madrid has owed money to Andalucia since 2009 at a rate of €4 million every day. The debt now stands at €10.8 billion, he said.

After a tense meeting in La Moncloa on June 18, Moreno told reporters, “Andalucia does not want to be ‘above’ anyone, but we will never tolerate being ‘below’ anyone. This is absolutely urgent. We cannot take much longer. We have looking for money under stones and trying to balance the accounts permanently.”

However, the Minister of Finance, Maria Jesus Montero, who was previously the Andalucian regional Minister of Finance, refuted Moreno’s claim and demanded that Moreno use his influence within the PP to seek an agreement on financing reforms within the party.

Any change in the financing system has to be voted on as an organic law in Congress, and the ruling PSOE do not want to hold a vote on it if they do not first have guaranteed support from the PP.

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