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Valencia City Council Cuts Funding for Employment Pact by 35%

The Employment Department, led by Vox, reduces the budget for the Employment Pact, drawing criticism for being a "political" cut.

Generic image of a Valencian town hall facade with an iron balcony and afternoon light.
IA

Generic image of a Valencian town hall facade with an iron balcony and afternoon light.

The Employment Department of the Valencia City Council, headed by Vox, has announced a 35% reduction in the financial allocation for social agents involved in the city's Employment Pact.

This decision means the total amount to be distributed among the six pact members—trade unions UGT-PV, CCOO-PV, CSIF, USO, and SPPLB, along with the employers' association CEV—will be approximately 316,000 euros, down from 486,000 euros the previous year. According to union and employer sources, the cut is attributed to a "political" issue and is part of Vox's "ideology," despite acknowledging the pact's effective work over more than 20 years.
Both the CEV and the unions find this argument "illogical," highlighting that the Employment Pact has operated "exemplarily" under different administrations and has served as a benchmark for social dialogue. The president of CEV Valencia, Eva Blasco, recalled the "great joint work" during the pandemic, while the UGT representative on the Pact, Pilar Mora, noted that it cuts a "tool for social and territorial cohesion" that has operated by consensus since its creation in 2002.
Social agents also point out that these funds are not for the organizations' operating expenses but for organizing activities and action lines for workers, the self-employed, and micro-enterprises. Consequently, they warn that planned activities for this year cannot be fully developed as they "were based on 100% of the subsidy." The CEV adds that the department's overall budget exceeds 2 million euros, leaving "plenty of room for maneuver" for other employment policies.
Furthermore, pact members indicate that the allocated amounts have not been adjusted for inflation over the past decade, resulting in an "accumulated cut." It is worth remembering that in the 2026 budget, Vox had already proposed not including the annual subsidy, budgeting only 25% of the pending 2025 allocation, justifying it by the pact's lack of renewal.
The pact, which expired in December 2024, remains extended. Although Vox submitted a draft for negotiation in March, social agents believe it needs to be redrafted with updated labor market data. The effective negotiation will not begin until July 2nd and is not expected to be straightforward. This cut follows the closure of the València Activa foundation by the local government of PP and Vox.

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