Valencia in talks to cut F1 costs

Valencia regional president Alberto Fabra is to continue talks with Formula One supremo Bernie Ecclestone to try to find a way to cut the cost of staging the European Grand Prix.

Serafin Castellano, secretary general of the region's ruling party, was quoted as saying Fabra was “in a process of negotiation to reduce the cost of the Formula One levy”

“Formula One is very important not only from an image point of view but also due to the economic impact, the creation of jobs and what that means for the Valencia region,” Castellano added.

VALENCIA AND BARCELONA TO ALTERNATE

Spain, home of Ferrari's Fernando Alonso, is the only country with two races a year, the Spanish Grand Prix in Barcelona and the Valencia event.

The two cities will begin alternating from next year, with the Catalan capital hosting a race in 2013 and Valencia in 2014.

Valencia is trying to reduce the cost of staging its race as cash-strapped local administrations are under pressure to make budget cuts as part of a central government austerity drive.

The region was the first to seek financial assistance from Madrid and used several state loans to repay its debts during the first half of 2012. - Reuters