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Valencia sues Spanish government over loss of EU funds

Who is to blame for the failure of multimillion-euro projects in Valencia

Valencia city authorities are taking the government to court after it refused to extend the deadline for using €20 million in EU funds. The situation threatens the loss of major investments and a political scandal.

Valencia authorities have decided to take legal action against Spain’s central government after the Ministry of Transport refused to extend deadlines for projects funded by the European Next Generation funds. Nearly 20 million euros are at stake, which the city could lose due to bureaucratic delays and political disagreements.

According to Jesús Carbonell, the city council’s representative for mobility, the ministry’s decision has no technical basis and is driven solely by political motives. He claims that similar projects handled by other ministries, such as the Ministry of Finance and the Ministry for the Ecological Transition, are being approached more flexibly, especially following natural disasters.

Contentious decisions

Carbonell points out that the ministry’s official response refers to articles unrelated to the conditions of the 2022 European grants and does not provide the technical report that supposedly supports their refusal. According to the city authorities, this puts Valencia in a vulnerable position and deprives it of the opportunity to protect its interests.

In 2022, the city received nearly 20 million euros to carry out 13 projects. About 3 million euros worth of work remains unfinished — including the reconstruction of Pérez Galdós and Giorgeta avenues, as well as building bike lanes on Gaspar Aguilar and San Vicente streets. Overall, 85% of the projects have been completed, but it is the remaining 15% that are at risk due to the refusal to extend the deadlines.

Double standards

The municipality was particularly outraged by the fact that, under the same program in 2022, the ministry had already granted year-long postponements for certain bike lane projects, yet now refuses a similar request. Carbonell emphasizes that some of the projects had been stalled for nearly two years under the previous administration, which ultimately compressed the timelines.

He also denies any link between the disputed grants and the absence of a full-fledged low emission zone (ZBE) in the city. According to him, these funds are not contingent on whether a ZBE exists, and the city council is prepared to revisit the project—first agreeing on it with coalition partners, particularly Vox, which previously opposed the initiative.

Political accusations

The opposition did not miss the chance to accuse the current administration of incompetence. Compromís representative Papi Robles called for Carbonell’s resignation, branding his management of the funds as irresponsible and dangerous for the city. She claims that if the situation doesn’t change, Valencia risks losing not only these 20 million, but also another 150 million euros tied to emissions reduction projects.

Socialist Elisa Valía also placed responsibility on Mayor María José Catalá, accusing her of climate denial and stalling the reform of the Pérez Galdós Avenue. According to Valía, the attempt to replace a project aimed at protecting public health with an initiative focused on improving car traffic led to missed deadlines and put funding at risk.

Internal disagreements

There is no unity within the city council either. The alternative LEZ project proposed by opposition groups Compromís and PSPV last December was rejected by the ruling party. Now, Carbonell has announced plans to file a pre-litigation claim against the Ministry of Transport to try to have the deadline decision reconsidered.

The municipality emphasizes that it has not been granted access to the technical report underlying the ministry’s refusal. In their view, this violates the city’s rights and prevents them from fully defending their interests in court.

The city on the brink

The situation surrounding European funds is intensifying already strained relations between local and central authorities. While some blame the city hall for inefficiency and stubbornness, others see the ministry’s actions as political retaliation and double standards. Either way, Valencia risks losing substantial investment, and residents may be left without promised infrastructure improvements.

The question of who will be held responsible for the potential loss of millions of euros remains unanswered. Meanwhile, city officials are preparing for a legal battle, while the opposition is demanding public explanations and a change in leadership.

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