Portal de Murcia

www.portaldemurcia.com

• Home
• Business
• Hotels
• Restaurants
• News
• Advertisement

The decision of the National Government to prohibit municipalities borrow up to 2012's "surprising" and is an "improvisation more."

Murcia Mayor and President of the Federation of Municipalities of the Region of Murcia, Miguel Ángel Cámara, has warned about the consequences of the measure, which will fall on "citizens and, in particular, on employees and small and Medium Enterprises ", which is condemned to being unable to work with local governments."

House has stressed that the determination of the government led by Rodriguez Zapatero has adopted without regard or seek the opinion of the municipalities and requires the cessation of the investment initiatives of the municipalities.

In this regard, remember that municipal contracts possible to maintain the employment and economic activity and many small and medium-sized Spanish towns subsist on local public works contracts.

Furthermore, Miguel Angel House has questioned the decision necessarily implies a reduction in the deficit because it "does not equal the debt and the deficit."

In fact, a municipality, as a family, you can borrow without incurring a deficit, if he does so in line with their ability to repay the debt.

Meanwhile, the deficit occurs when you have revenue expenditure.

Regarding the effect of this measure to reduce the government deficit-currently located about 12% or 13% - the Mayor of Murcia has indicated that the percentage is computable at 8400 local 0.5%.

"The government of Spain will know the consequences of their actions," he concluded.

Source: Ayuntamiento de Murcia