Andalucia asks for a billion to tide it over… until it can prepare the paperwork for a full bailout

Andalucia has asked Madrid for a billion euros “to tide it over” until the Junta can finish the request for a full scale bailout from the Fondo de Liquidez Autonómico (FLA).

The scrabble for free cash has started…

The Junta says that it needs the billion to “short term liquidity problems” and admits it is preparing a request for what it calls “a full financial aid package”, but denies it is asking for a full bailout as “we don’t know the implications of a rescue package”. Instead, the Junta is trying to convince people that it only wants the same as Valencia or Catalonia: in other words, we need the cash, but lets convince people its because it’s free, not because it’s urgent.

The theory being touted by these regions is that since they give Madrid more in tax revenue than they get back, the cash from Madrid is really theirs and they shouldn’t have to ask for it (something that only makes sense if you’re a regional nationalist, but hey).

Anyway, the central governments much vaunted rescue packages for the regions, in which Spain was supposed to bailout bankrupt regions in exchange for strong promises on their future spending, appears to have gone out of the window as both Catalonia, and now Andalucia, say they want the cash but won’t agree to anything in exchange.

I wonder if my bank will accept the same, now that we have the precedent set?

Anyway, Andalucia says it’s only run out of cash because A) the banks won’t buy the debt Seville issues (I wonder why) and B) because the PP are bastards.

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