Valencian Auditor Warns of Record Debt in Generalitat

Vicent Cucarella, the head of the Valencian Community's Court of Auditors, has warned the regional government of a critical financial situation. During a presentation to the Economy, Budgets, and Finance Commission of Les Corts Valencianes, Cucarella reported that the Generalitat faces a negative net worth exceeding 53,000 million euros and a financial debt of 63,000 million euros.

Of the total debt, more than 54,000 million euros stem from operations with the Official Credit Institute (ICO), which must be repaid, including credit linked to DANA disaster relief. Additionally, the 2024 budget recorded a deficit of over 2,200 million euros. Cucarella emphasized the need for proactive measures to address these imbalances before potential economic growth slows down.

The auditor noted that the administration failed to comply with the spending rule in 2024 and highlighted ongoing issues regarding financial and liquidity imbalances. He also addressed concerns regarding healthcare contracts, specifically calling for clearer frameworks between the Health Ministry and the Valencian Institute of Oncology to prevent improper cost transfers.