Estepona takes central government to court for European funds

Estepona Council will take the Spanish central Government to court for its refusal to provide the town with a share of European Development Funds, (FEDER), that it claims to be entitled to.

Estepona has had its ambitious project rejected, despite being one of Andalusian cities with the best track record for compliance and transparency when managing EU funds. The initiative, titled ‘Estepona, Garden of the Costa del Sol, Green and Sustainable City’, sought €20 million to further the town’s sustainable urban model and enhance its natural and cultural heritage. The funds would have come from FEDER, and the rest by the local council.

Estepona achieves zero debt

The Directorate General for European Funds under the Ministry of Finance has now definitively rejected the objections of the town to the provisional allocating decision. This leaves the council with no option but to pursue the matter through a contentious-administrative appeal in the courts. Estepona officials say that the town is in a good financial position to carry out such projects. The town made the impressive step of clearing all inherited debts from previous administrations. They are also up-to-date with their payments to Tax Agency and Social Security and have recorded a historical budget surplus. These were the main objections, particularly since the Government had initially downgraded the proposal based on economic solvency fears.

The grant would have allowed the local authority to carry out its plan. This included creating new river corridors and energy-efficient renovations of public buildings. It also included the installation of photovoltaic panels on council buildings. The initiatives were designed with the input of residents, and they focus on urban renewal, protecting and promoting cultural, archaeological, historical and ethnographic heritage as well as increasing resilience to climate changes through energy and water efficient measures.

Ana Vilaseca, Deputy Mayor for Affairs, stated that, “Our plans fully meet all the requirements and criterion of the EU call. Our proven success managing previous EU funding supports this.”

Estepona has a long history of receiving EU Development Grants

Estepona’s history with grants is strong. Previously, the town received €10 million (with 20 per cent council co-funding) and achieved nearly 90 per cent execution — one of the highest rates among Andalusian local authorities. The project re-vitalised the old city as a tourist attraction, upgraded public services, and modernised council service with new technology.

According to the council, the “Garden of the Costa del Sol” project will continue, but it may require a legal battle with the central government and/or bringing the issue directly before the European Commission.

Local leaders claim that the rejection ignores the town’s excellent management and financial stability, and are ready to challenge the decision in court to obtain the resources necessary for future progress.