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The Generalitat (Valencian government) is facing a financial shortfall of 200 million euros per month due to the absence of the 2025 General State Budget.
Finance Minister Ruth Merino has accused the Spanish government of financially “suffocating” the region by failing to update advance payments for the financing system, which are still based on 2023 figures.
Merino said that the Generalitat has already lost 500 million euros this year and criticised Finance Minister María Jesús Montero for delaying necessary funding updates.
She warned that this could lead to financial instability, as the Valencian Community also faces a 3-billion-euro deficit from last year that the central government has refused to finance through the extraordinary FLA mechanism.
The minister argued that the Spanish government’s failure to present a budget should not leave Valencians dependent on political negotiations.
She stressed that the lack of updated payments could endanger essential services like healthcare, education, and social welfare.
To mitigate the impact, the Generalitat has sought temporary financial assistance from the Valencian Institute of Finance (IVF) to cover urgent expenses.
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