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Francisco Pérez proposes a regional financing system for Spain that provides equal access to basic public services

Ivie’s Research Director participated in the public event “Per un finançament just” held in Madrid

Francisco Pérez, Ivie Research Director, participated in the public event Per un finançament just organized in Madrid by the Valencian Regional Government and the Valencian Parliament to assert the need for a change in the current Spanish regional financing system. During his speech, as the representative of the Experts Committee on Financing, Francisco Pérez stated, based on facts, that “decades of underfunding” have resulted in harmful consequences for the Valencian Community.

Specifically, the budget for non-financial expenditure per capita for the Valencian Community in 2016 was 14% lower than the average allocated to other autonomous communities and 24% and 37% below other regions with a similar income level, such as Asturias and Cantabria, respectively. In spite of spending less, the Valencian Community has a higher deficit, due to its lower income. For example, in 2015, it received 11% less income than the average resources per capita per region, which meant 1,807 million euros less than the average of the regions. That amount, which was not perceived, represents 2.5 times the budget the Valencian Regional Government assigns to universities and higher education, up to three times the expense in support of personal autonomy and dependence, and double the expenditure made in support of economic activities.

To put an end to this situation, Francisco Pérez proposes an in-depth reform of the Spanish regional financing system, to ensure the sustainability of the welfare state and allow a leveling of the resources assigned to each region to ensure everyone has an equal access to basic public services, regardless of where they live.