The regional government argues that the new state regulation violates the management authority reserved for the regions. The appeal highlights that the legislative framework imposes an excessive economic burden on regional budgets, increasing the mandatory co-financing requirement from 25% to 40% of the total investment.
Madrid officials rely on a recent opinion from the Council of State, which warns of interference in regional financial autonomy. The advisory body notes that state guidelines restrict self-organization capacity and fail to account for the specific demographic and social realities of each territory.
A further point of contention involves the requirement for permanent protection status on housing receiving public subsidies. The regional executive claims this mandate contradicts previous rulings by the Constitutional Court and creates legal uncertainty by overriding established local regulations.
