The Spanish Grand Prix is set to have its funding from the city of Barcelona cut by 50% in 2016.
Local media reports the council will reduce its contribution towards the race from €4million to €2million from this year, as part of a move to phase out the funding altogether. The first deputy mayor of Barcelona, Gerardo Pisarello, told Diario Sport the decision has been taken because "Formula 1 is not a priority".
The Circuit de Barcelona-Catalunya underwent a rebranding to incorporate the city's name in 2013, and during last year's Spanish Grand Prix announced a new contract to host the race until 2019. However, that deal came before the current council was elected.
The council is set to withdraw the complete €4m of funding for the race, but Pisarello says it has opted for a "phasing out" of its backing in order to avoid "damaging consequences".
Negotiations have taken place between the council and the municipalities involved in order to put together a viable business plan which may involved a "restructuring" to make the circuit self-sufficient "little by little", Pisarello added.
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