Madrid Confronting the Financial Legacy of Past Governments
The government of Isabel Díaz Ayuso in Madrid is currently grappling with the financial repercussions of decisions made by previous administrations, including those of Esperanza Aguirre, Ignacio González, and Cristina Cifuentes. According to a report by Juan José Mateo (2025) in *El País*, these financial burdens amount to millions of euros and stem from various issues ranging from unpaid taxes to unfinished infrastructure projects (El País).
The 'Sanitary Cent' Controversy
One significant issue involves the so-called 'céntimo sanitario' (sanitary cent), a tax on gasoline and diesel introduced by Alberto Ruiz-Gallardón in 2002 to fund healthcare initiatives. While initially intended to improve healthcare quality, Esperanza Aguirre froze the tax rate but continued collecting it. When the European Court of Justice declared the tax illegal, the regional transportation consortium sought to reclaim the funds from bus concessionaires, arguing they had already been compensated for the tax. The current Ayuso government recently had to pay €1,378,789.76 due to this litigation, marking the latest in a series of expenses incurred due to past decisions. A government spokesperson stated, «This is the third and final judgment on this issue,» highlighting that smaller payments of €66,000 to Prisei and €199,000 to Cevesa had already been made.
A Legacy of Financial Burdens
The problems associated with the 'céntimo sanitario' are just the beginning. The *Ediciones EL PAÍS S.L.* reports that the Partido Popular (PP) has governed the Community of Madrid since 1995, overseeing significant transformation, including the expansion of the Metro, the construction of new hospitals, and population growth. However, this period also saw a real estate bubble and corruption scandals, such as Gürtel, Púnica, and Lezo. Daniel Rubio of the PSOE points out that «if there is one thing that characterizes the PP's policy in Madrid in terms of infrastructure, it is waste, botches, cost overruns, litigation and the loss of resources for the people of Madrid.»
Education: Addressing Past Cuts
In January 2020, the PP and Cs coalition government, also led by Díaz Ayuso, agreed to pay €99.5 million between 2020 and 2024 to Madrid's public universities. This compensation addresses cuts made by Aguirre in a €640 million investment plan for 2007-2011. This agreement marked the end of a prolonged legal battle that the Community consistently lost, resulting in a total payout of €574 million.
Infrastructure: Ghost Roads and Railways
In 2021, the regional government paid nearly €200 million for an abandoned railway line intended to connect Móstoles with Navalcarnero. The project was abandoned due to budget overruns caused by changes in the route and is currently under investigation in the Lezo case due to alleged commission payments. Additionally, over €70 million was spent on the MP-203 highway, which lacks a crucial connection to the R-3 radial highway, hindering its ability to alleviate traffic congestion. The construction company is still seeking nearly €300 million in compensation.
The Troubled Metro Line 7B
Perhaps the most dramatic case is that of Metro Line 7B, built during Aguirre's tenure. The current government has invested hundreds of millions to address its ongoing issues. The infrastructure is gradually sinking, causing buildings above to collapse, leading to demolitions, compensation payments, and extensive repair work.
Healthcare: Empty Beds and Debt
In late 2021, the Ayuso government formalized a payment of nearly €30 million to the concessionaire of the Puerta de Hierro Hospital in Majadahonda. This payment stemmed from a decision by Aguirre to convert 135 double rooms into single rooms, despite the service not being provided. Furthermore, in 2022, the president ordered the settlement of at least €1.39 billion in debt to privately managed public hospitals. These financial obligations originated from decisions made as far back as 2015.
Housing: Public Homes in Private Hands
In May 2022, the Community agreed to compensate Encasa Cibeles with €107,722,508.95 for the return of 1,721 homes to the Social Housing Agency. These homes were part of a larger sale of 2,935 public housing units to a Goldman Sachs-controlled entity in 2013. This sale placed vulnerable families at the mercy of a private company, leading to conflicts over rent increases and evictions. Following a legal ruling that the sale was improper, Encasa Cibeles returned the unsold properties and received compensation but is now seeking an additional €220 million in court.
Looking Ahead
The Ayuso government continues to navigate the complex financial landscape shaped by previous administrations. Addressing these legacy issues requires careful management, strategic investment, and a commitment to transparency to ensure a stable financial future for the Community of Madrid.
