Overview

• The Generalitat Valenciana has formally requested a €2.5 billion extraordinary Fondo de Liquidez Autonómico (FLA) from the Spanish Government to sustain essential public services.
• Valencia's treasury faces unprecedented strain, with €1.92 billion in commercial debt and €280.7 million in unpaid invoices as of March 31, jeopardizing payments to healthcare, education, and social services.
• The exclusion of the extraordinary FLA marks a break from a 12-year precedent, intensifying structural funding shortfalls under the 2009 regional financing model.
• Valencia holds the highest debt-to-GDP ratio among Spanish regions at 40%, driven largely by chronic underfinancing rather than overspending.
• Spanish Government delegate Pilar Bernabé disputes the Generalitat's criticism, citing record transfers of over €15 billion and questioning Valencia's recent €500 million tax break.