MANY local councils are feeling the economic pinch especially as the central administration has introduced a freeze on all borrowing. Councils have been told that they must balance their books and live within their financial means.
The move has sparked an outcry with many councils being forced to cut back even on the most basic services. I am amazed at the poor financial state of local authorities on the island and some of the richest such as Calvia, are the ones which have the biggest debts. The financial situation of the Calvia council has already led to a war of words between the ruling Partido Popular and the socialists who claim that Mayor Carlos Delgado has run-up a debt mountain during his eight years in office. You would have thought that in these difficult times local authorities would be trying to set an example and try and balance their books without the need for borrowing. Obviously not. The loan freeze is expected to come to an end next year and already councils are looking ahead to see how much they can borrow. Wouldn´t it be a good idea if they learnt their lesson and instead of embarking on ambitious and costly projects they just decided to balance their books? After all wasn´t this the cause of the credit crunch?
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