Deal to Require Loan of €14 Billion from Spanish Councils Looks Unlikely to Go Ahead

Prime Minister Sánchez needs support of all political parties Credit: La Moncloa flickr

WHEN you run a minority government it is often necessary to take note that if you want to push through a controversial idea that it helps to have opposition parties with you.

The Spanish Government needs money and needs it quickly, so it recognised that many councils throughout the country have significant surpluses in their accounts which are estimated at totalling more than €20 billion.

Perhaps rather hurriedly the Prime Minister Pedro Sánchez managed to enter into an agreement with Spanish Federation of Municipalities and Provinces (FEMP) by the narrowest of margins to borrow €14 billion over a period of 10 years, which has since been increased to 15 years.

In return, those municipalities lending the money will be invited to share €5 billion to use in efforts to support their residents following the Covid-19 pandemic.

Mayors all over Spain who are not aligned to the PSOE or Podemos parties are in revolt against the plan as they argue that they should be able to use their funds to aid their population and it appears more than likely that plan is doomed to failure.

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John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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