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Date Published: 16/10/2024

Funding fiasco: Orihuela loses 7.5 million in European grants for failing to spend it

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Of the 8.7 million euros in subsidies granted, Orihuela City Council has only managed to spend 13%

Funding fiasco: Orihuela loses 7.5 million in European grants for failing to spend it

Orihuela City Council has come under fire following the shocking revelation that 7.5 million euros in European funding has been lost due to inefficiency and poor management. The funds, which were allocated for a dozen projects under the Edusi program, were meant to be used for sustainable urban development and regeneration.

However, this major budgeting blunder means that only 13% of the funds have been executed, with the majority of the projects remaining in limbo.

A report requested by the Councillor for Projects and Urban Planning, Matías Ruiz, reveals a trail of inefficiency and mismanagement. The document states that the city council's budget constraints, which have been extended since 2018, have hindered the execution of the projects.

The report also points out that the lack of agility in the start-up of the Edusi program, coupled with the instability caused by the constant change of municipal governments, has contributed to the failure to execute the projects.

According to the Spanish government, the bulk of the improvements should have been carried out – and paid for – between 2017 and 2023. Orihuela City Council processed projects valued at a total of 17.4 million euros, which were to be subsidised with 8.7 million from Europe. But it’s now come to light that the administration has invested a mere 2.3 million euros of this.

Project left in limbo

Some of the ambitious and sought-after projects that have fallen by the wayside include the creation of a "horizontal and vertical technological platform for a smart city," valued at 1.482 million euros. Other projects, such as the revitalisation of trade through the creation of an open shopping centre and the promotion of the local productive fabric, have also been left in limbo.

On the other hand, some of the agreed works have been carried out, at least partially, including new bicycle lanes and the implementation of intelligent lighting in some districts.

But this is just a drop in the ocean compared to what the funds could actually have helped achieve.

The blame game

In response to the damning report, Orihuela City Council has simply stated that “they have not been able to be executed due to various unforeseen circumstances.”

Predictably enough, opposition politicians are laying the blame squarely on the shoulders of the ruling PP party in Orihuela, attributing the failure to process the European funds to the “laziness” of the local government.

One of the main problems, they insist, is that the City Council never set up a proper system for keeping track of the aid, like so many other municipalities did. Nearby Alcoy, a spokesperson pointed out, “has not lost a single euro of European funds.”

In other news: Spain introduces new regulations to impact short-term tourist rentals

Image: Ximonic via Wikimedia Commons

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