The Islands have had to ask the Government for money because the funding that comes to them through ordinary channels is not enough, therefore the local government say it is logical that Madrid compensates for this deficiency and forgives the debt.
The data handled by the Balearic Government is that at the end of the year it will be left with a total debt of less than 9,034 million. Of this amount, a total of 4,021 million corresponds to debt with the State, which represents approximately 48%. The debt with Madrid had reached 6,100 million, which represents almost the budget that the Government will have next year.
Balearic Finance Minister Rosario Sanchez is clear that this must be one of the submissions of the claim that the Balearics will raise both to the Government and to the other autonomous communities. Her proposal is that the 4,000 million owed by the Balearic Islands to the State be assumed by the Government. This absorption of the debt of the autonomous communities will not affect it, for the purposes of the stability rules of the European Union, the debt of the autonomous communities is already recorded as Spain's overall debt. However, for the Balearic Islands it will be a relief.
"This cancellation of the debt is very important to achieve the objectives of budgetary stability," says Sanchez. In fact, the Finance Ministry believes that this debt cancellation does not have to affect only the indebtedness with the State since the Government could also take charge of the money owed to the banks, those other 5,000 million remaining.
A report conducted some years ago by the Sindicatura de Comptes de Balears, concluded that the Balearic Islands has suffered a clear problem of under financing that has had to be solved by asking for money from the banks to be able to balance the accounts.
The Comunity of Valencia has commissioned a similar report since, together with the Balearic Islands, it is another of the territories that has suffered underfunding.
However, political alliance between Francina Armengol and Ximo Puig may not be enough to overcome the resistance of the current Minister of Finance, María Jesús Montero. In her time as Finance Minister of Andalusia, just before being appointed Minister, Montero opposed this claim raised by the Balearic Islands to the rest of the autonomous communities in the meetings of the Council of Fiscal and Financial Policy. Now she will have to give her opinion when the financing system is negotiated.
5 comments
To be able to write a comment, you have to be registered and logged in
As Mrs T used to say, "Socialists always run out of other peoples money" !
As Mrs T used to say, "Socialists always run out of other peoples money" !
As Mrs T used to say, "Socialists always run out of other peoples money" !
As Mrs T used to say, "Socialists always run out of other peoples money" !
This is Very Optimistic 4 billion written off to save her Political Future every Town in Spain would like to do that !