60 percent of municipalities in Andalucía reported to be in finanical difficulty

60 percent of municipalities in Andalucía reported to be in finanical difficulty
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By h.b. - Jun 23, 2009 - 7:51 AM

The halt in construction is being blamed for the financial crisis - EFE

Widespread redundancies are inevitable as local councils cut costs

More than 60% of the municipalities in Andalucía are reported by El País to be suffering budget problems which are threatening the payment of wages to council workers.

Many local councils across the region have been hard hit by the halt in taxes they previously collected on new property, and the Andalucian Federation of Municipalities and Provinces, FAMP, says that 60% now have serious problems paying workers at the end of the month, with new municipalities being added to the crisis list every week.

In Jerez the local council is looking for ways to reduce the workforce as their bank debt reaches 575 million €, and similar difficulties are reported in Puerto Real.
The village of Orcera, Jaén, is technically bankrupt.

Local councils are calling for new laws, new finance and also new responsibilities to justify greater grants to them. The Socialist party has promised the development of a Local Pact for the past 20 years, but little progress has been made, while the new Statute for the region will include seven laws to regulate the relationship between local ayuntamientos and the Sevilla regional administration.

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