Valencia ups bailout request from Spain government

Revelers play with tomato pulp during the annual "tomatina" tomato fight fiesta in the village of Bunol, near Valencia Despite the economic woes, revellers in Valencia celebrated the annual Tomatina festival this week

Valencia has said it will need a bigger bailout from Spain's central government than it previously expected.

The region will ask for 4.5bn euros (£3.6bn; $5.6bn), more than had been suggested when it first made the plea earlier this summer, a spokeswoman confirmed.

This week, debt-ridden Catalonia also asked for a bailout of 5bn euros.

A 18bn-euro public fund was set up by Madrid to aid its 17 autonomous regions, which are in deep debt.

Valencia, along with Murcia, had already indicated in July that it would need help.

The area has become symbolic for its so-called white elephant projects, absorbing large amounts of government spending. For example, Castellon Airport, which cost billions, has yet to have a flight take off or land.

As a nation, Spain's struggling economy has declined for three consecutive quarters, as it continues to suffer from the effects of its property bust caused by the financial crisis.

In June, Spain requested 100bn euros of loans from the eurozone's bailout fund to help support its banks, which are struggling with bad debts from loans made in the property sector.

Speculation has persisted that the country will have to request a full financial rescue.

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Alana Saarinen at pianoMum, Dad and Mum

    The girl with three biological parents


  • Polish and British flags alongside British roadsideWar debt

    Does the UK still feel a sense of obligation towards Poles?


  • Islamic State fighters parade in Raqqa, Syria (30 June 2014)Who backs IS?

    Where Islamic State finds support to become a formidable force


  • Bride and groom-to-be photographed underwaterWetted bliss

    Chinese couples told to smile, but please hold your breath


  • A ship is dismantled for scrap in the port city of Chittagong, BangladeshDangerous work

    Bangladesh's ship breakers face economic challenge


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.