HEALTH spending in the Valencian Community ‘could collapse’ if the central government does not help, according to regional president Carlos Mazon.
The stark warning comes as the Valencian government faces ending the year with a €3 billion deficit after pouring in resources to manage the flood disaster and its aftermath.
Speaking on Tuesday, Mazon said that if the €3 billion figure is reached, it would mean the ‘collapse’ of regional public coffers and the inability to make all kinds of payments.
PAIPORTA DAMAGE(Cordon Press image)
“We are talking about pharmaceutical spending, we are talking about the expenses of our social centres, we are talking about our hospital spending,” warned Mazon.
He slammed delays in Madrid in approving the so-called Regional Liquidity Fund (FLA).
“I want to convey my astonishment and panic because the Spanish government for the first time in the fund’s history, has not approved money in December to make our social payments,” he exclaimed.
Mazon said the national government last year had authorized €3.8 billion to the FLA ‘to be able to meet the expenses’.
He continued: “I say this without any political slant, but I say this from responsibility and from the great fear that this Community could be doomed to a collapse in its social payments if these €3 billion are not approved.”
Mazon’s warning comes a day after the central government approved allocating a €700 million zero interest loan to the region to help cover expenses of the DANA flood.
A Valencian government source said the ‘loan will be financed with debt’ and pointed out that a non-refundable payment of €283 million was given on Tuesday to the Catalan administration to wipe out the deficit of the public rail service in the region.
“Meanwhile, Valencia is denied non-refundable aid for the reconstruction of the Community and is dependent on money being approved within the General State Budget,” the source continued.
