• Hacienda Montero begins the financing reform with a "victory" for Valencia and the rest's discontent

In its proposal to

reform regional financing

, the Ministry of Finance tried to square the circle, that is, to make everyone happy. To do this, it presented a document in December that revolved around the

population criterion

-defended by the side headed by the Valencian Community and Andalusia-, but correcting it in practice with

variables such as dispersion or depopulation

to satisfy the so-called emptied Spain, the front in which Galicia or Castilla y León are inscribed.

But if that first "skeleton" of the new distribution of regional funds did not finish convincing almost anyone, the autonomy that applauded it not only now takes a step back, but also warns that the Ministry's proposal may fall directly into arbitrariness .

In other words, objective criteria would not be applied for the distribution of the cake, as Madrid has been denouncing.

This is the main conclusion of the report prepared by the Valencian experts on the

calculation of the adjusted population

proposed by the Ministry to overcome the current system, which has expired since 2014. The 79-page Valencian document bluntly questions María Jesús Montero's proposal , and will be fully assumed by the Generalitat to send as

official allegations

.

Moreover, the report also has the support of all the parties -except Vox-, the employers' association and the unions.

PSOE and PP, in this case, sign it.

And what the report says is that "the revision of the calculation of the adjusted population is technically unsatisfactory, especially with regard to the role of non-population variables and their weight in the distribution of resources." The position of the experts and of the Generalitat Valenciana is that all the money that the State distributes to the communities must be based on the population. Anything other than this approach

would continue to leave the Valencian Community behind in regional financing

.

The so-called

"corrective variables"

that the Ministry incorporates (area, depopulation or dispersion) to qualify the criteria of the population will be rejected by the Valencian Community.

The reason, according to the report, is that "the statistical evidence provided [by the Ministry] on the significance of these variables to explain the differences in spending between communities is not satisfactory."

In other words, it is not clear how they are calculated or why, in the opinion of the Treasury, they should represent 3% of the resources.

In the opinion of the Valencian report, the calculation of the needs of each region "should be limited to understandable population variables due to their simplicity and transparency in their calculation", so that they are not

"manipulated"

. Sources from the Ministry of Finance explained that the Ministry's approach is not even well founded or based on objective data. The report emphasizes this line: "At no time do the quantitative techniques used allow us to obtain the weights proposed for the corrective variables, giving them a weight of 3%-4% based on what the current model does and on unsubstantiated claims."

Therefore, in the opinion of the Valencian experts, the Ministry's document "cannot be considered a sufficient proposal to tackle the necessary and urgent reform of the current financing system".

What is proposed from the Valencian Community is the

suppression of all the funds that to date have not been distributed according to the population

.

In short, go to a scenario "without more

ad hoc

funds that, as is happening now, distort the allocation derived from the adjusted population to justify that of the

status quo

".

Conforms to The Trust Project criteria

Know more

  • Valencian Community

  • Madrid

  • Valencia

  • PSOE

  • vox

  • Maria Jesus Montero

  • Castile and Leon

  • Galicia

  • Spain Emptied

  • Spain

  • Andalusia

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