Asturias premier turns over finances to EC after minister suggests intervention

A possible governing pact between the Popular Party (PP) and the Asturias Citizens Forum (FAC) is being threatened by a public dispute between Finance Minister Cristóbal Montoro and caretaker regional premier Francisco Álvarez-Cascos over Asturias' finances.

Cascos has turned over the region's finance records directly to Olli Rehn, vice president of the European Commission responsible for Economic and Monetary Affairs, after Montoro said Saturday that the central government may have to intervene.

Cascos said that he was handing over the records "to deny the false news" delivered by the finance minister, who shows "a lack of seriousness" and could "ruin the region's credibility" with the ratings agencies.

The Asturias government has set out a goal to reduce its deficit to 0.9 percent of GDP by the end of the year. Its debts are listed at 21.55 billion euros, or 9.1 percent of its GDP. Nevertheless, the deficit number is still lower that the median average of all the regions, which stands at 13.1 percent.

The conflict between Cascos and Montoro comes prior to a meeting with Mercedes Fernández, the Asturias PP leader, to discuss forming a coalition to govern. The political impasse in Asturias following regional elections in March will have to be decided by the only UPyD deputy. The Socialists and the United Left partnership amounts to 22 seats, while FAC, with the PP's backing, would also form a 22-seat block. UPyD leader Ignacio Prendes rejected joining Cascos but said he would study any pact with the PP.