After some weeks with on-off dialogues, an agreement seems to have been reached in Valencia beetween the José Luis Rodriguez Zapatero's Socialist Government and the Valencian local Authorities of the conservative Partido Popular.

Details are not available yet, but the agreement is purported to maintain the Valencia 2007 structure but to make some adjustments.

As its composition will be based on parity between representatives of the Central Governement and the local Authorities (today, the "board of Governors" included four representatives from the central, regional and local administrations), the main decisions are due to be taken by unanimity.

According to the Spanish Website Valencialife.net, it would appear that the former director of the Valencia Trade fair Alejandro Mañes will take the place of Jose Salinas in the Americas Cup Consortium Valencia 2007.

The consortium will become owner of the America's Cup infrastructures and will be in charge of their commercial exploitation after the Event. A long-term commercial exploitation that will allow Valencia 2007 to repay the main part (€300 million) of a €500 million loan from the Instituto de Crédito Oficial (the Government will shoulder €200 million).

Meanwhile, the former Conseller for public administrations under Socialist Joan Lerma - Joaquin Azagra - will head a state-owned company that the Government is intent on creating.

In this way, the Socialists have effectively taken over the reins of control for the Americas Cup. Esteban Gonzalez Pons, the official Spokesman for the Valencian Government stated that "The Americas Cup is an affair of state and we must all agree with that."