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Valencia Demands Emergency Liquidity and Financing Reform in Escalating Clash with Madrid

The Generalitat accuses the central government of economic 'asphyxiation' and seeks alliances with other regions to push for systemic changes and energy policy discussions.

Susana Camarero y Vicente Martínez Mus.
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Imagen de archivo del presidente de la Generalitat, Carlos Mazón

Overview

  • The Consell de Mazón has issued an institutional declaration calling for the urgent approval of an extraordinary Fondo de Liquidez Autonómica (FLA) to address severe liquidity shortfalls threatening essential public services.
  • Valencia’s government attributes its financial crisis to an outdated financing system that disproportionately reduces its revenues, making it the most indebted region relative to its GDP.
  • Regional leaders accuse Prime Minister Sánchez of intentionally withholding funds to harm the Generalitat, framing the situation as politically motivated economic 'asphyxiation.'
  • The Generalitat is forming a coalition with other autonomous communities to demand systemic financing reform at the upcoming Conference of Presidents in June.
  • Valencia also plans to raise energy policy issues, including nuclear energy and grid stability, following the April blackout that left critical questions unresolved.