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The Fiscal authority warns of the financial risk of nine municipalities

The Airef predicts that eight other major municipalities will breach the spending rule

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The Fiscal authority warns of the financial risk of nine municipalities

The Independent Fiscal Responsibility Authority (AIREF), body responsible for ensuring sustainability of public finances, has warned this Tuesday about delicate financial situation of nine municipalities: Jérez de la Frontera, Alcorcón, Parla, Jaén, Gandía, La Concepcion Line, San Andrés de Rabanero, Totana (Murcia) and Navalcarnero. "The degree of annual compliance of fiscal rules is of secondary importance to a structural and acute problem of sustainability of ir finances," says institution chaired by José Luis Escrivá. The tax authority recommends that Government convene a committee of experts to analyse causes and solutions of alarming situation of se corporations.

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  • Carmena's cuts to tackle spending already affect 769 investments
  • Hacienda threatens to intervene in 22 municipalities due to its high delinquency

The AIREF has presented this Tuesday report on fundamental lines of budgets of 2018 of municipalities. The document stresses that whole of local sector will register a surplus of around 0.6% of GDP, in line with previous years. Municipal Corporations record savings from 2012, when stability law that forces m to balance ir accounts came into operation.

The Agency recalls that local Reform Act, adopted in 2012, also introduces measures to ensure sustainability in medium term. In this context, city councils have been able to clean up ir finances by fulfilling spending rule--an instrument of stability law that prevents mayors from shooting spending--. But institution warns that eight municipalities will breach spending rule in 2017. Among se figures Madrid, Valencia, Las Palmas, Bilbao; Cordoba, Gijón, Cabildo of Tenerife and Insular Council of Majorca.

Precisely city Council of Madrid has maintained a hard pulse with Ministry of Finance on account of fulfillment of rule of expenditure. The ministry came to implement some of most forceful coercive measures that law of stability enforces and obliges administration that manages Manuela Carmena to report weekly of its financial commitments and of budgetary evolution.

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