Municipalities in the Balearics stand to lose 28 million euros under the new system of financing councils planned by the central government, according to the PSM (Majorcan Socialist Party). In a communique, it claims that the new system cuts back the income of town and village councils and will force them to increase fscal pressure on residents in order to survive. The new system, the communique says, does not guarantee smaller councils with enough funding to cover their most basic needs. One government proposal to compensate loss of funds is confined to councils with more than 100'000 inhabitants and provincial capitals and in the Balearics, this means only Palma, the party said.

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