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The Ministry of Finance rejected the approval of the Economic Financial Plan (PEF) submitted by Madrid unless the corporation includes spending cuts amounting to 238 million in 2017 and 243 in 2018.
The so-called expenditure rule has become the political objective to beat on the part of those responsible for the Treasury of the largest municipalities in Spain.
The consistories of Madrid, Barcelona, ​​Valencia, Zaragoza, Cordoba, A Coruña, Badalona, ​​Oviedo, Cadiz, Santiago de Compostela and Rivas-Vaciamadrid have asked Minister Montoro to change the Budgetary Stability Law so that their municipalities, with sufficient budgetary slack , can increase investments in necessary public services.
The reaction from these municipalities comes after the one led by Manuela Carmena was intervened by the Ministry of Finance on October 27.
That day, Minister Montoro announced to the consistory that he could not approve the presented Economic Financial Plan (PEF) unless the corporation includes spending cuts amounting to 238 million in 2017 and 243 in 2018.
And is that the government uses the unfair rule of expenditure to restrict the performance of local corporations, although they have significant budget surpluses, something that can not boast either the central administration or the autonomous communities.
In fact, we can not forget that in the first two years of the legislature, while local corporations reduced debt by 14.08%, the Autonomous Communities increased it by 13.8% and the Central Administration by 8%.
In April of this year, the Spanish Federation of Municipalities and Provinces (FEMP) demonstrated that the Local Authorities were the only Public Administrations that met the stability objectives, these being those that contributed to the reduction of the public deficit in our
country before the demands of the European Union.
From the Municipal Group of IU-Green we demanded that the government team be positioned before the request made by the FEMP to the Government of Rajoy to allow municipalities to reinvest their surplus with the only limit of not jeopardizing their budget stability.
All this, taking into account also that our consistory presented a positive remnant in 2016 of more than half a million euros, which could be used to improve services, combat poverty or address requests for improvement that, for example, schools require of our city.
However, the Popular Party did not answer.
It cites, in particular, the case of the City of Madrid, which will be required to submit to the Treasury weekly all their budgetary movements after the breach of the spending rule in recent years.
For all this, from the Municipal Group of IU-Green we want to show our solidarity with the consistory of Madrid and urge the government of Spain to immediately withdraw the unfair financial controls imposed on it, because they are nothing more than an unjustified attack on the autonomy local recognized by the Constitution.
Also, our parliamentary group in the Congress of Deputies has planned to present an initiative to reform the law of Budgetary Stability and Financial Sustainability and article 135 of the Spanish Constitution, to modify the unfair spending rule so that the local administrations comply and solvents can give priority to social spending.
Source: IU-Verdes Yecla
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