Sunday, December 21, 2014

SPAIN: CCAA and municipalities negotiate now that the state … – EntornoInteligente

SPAIN: CCAA and municipalities negotiate now that the state … – EntornoInteligente

Home & gt; Business | Posted on Sunday, December 21, 2014
SPAIN <- - AUGURE_TITULO_INICIO!>: CCAA and municipalities negotiate now the State to assume its debt

Expansion / The measure also apply to municipalities, which also on Tuesday will meet with the Executive of the National Commission for Local Administration.

The proposal means that either the Treasury on issuing debt needing other public administrations and they apply a rate of 0%, so the cost of the measure, which is not yet quantified, would move to the state.

The goal is to “contribute to reducing the public deficit of communities and municipalities, optimizing deficit financing and refinancing outstanding debt “, as explained by the Minister Cristobal Montoro these days. The budget not devoted to paying interest, will invest elsewhere.

Treasury has not finalized details of this mechanism, but intends to be approved on Tuesday and the Council of Ministers give green light on Friday, so that you can start using already refinancings that municipalities and communities held from January. It will reach both autonomy included in the Regional Liquidity Fund (FLA) as those who have not made use of this resource. Also serve to welcome the plan of payment to suppliers.

“The sooner we realize this proposal before we will all benefit,” insisted Montoro, convinced it will be “well received” by all local authorities.

However, following the emergence of the first information on this measure, the Minister of Economy of the Generalitat of Catalonia, Andreu Mas-Colell, and regretted that the Government did not discuss with communities changes, while the Minister of the Presidency and Justice of the Community of Madrid, the ‘popular’ Salvador Victoria, warned that not accept a pardon of interest to communities of FLA.

Cost Despite the various costs that this measure might suppose, Montoro says there is still no concrete estimates that are still working on the details of the procedure. It has also indicated that there would be an additional expense to the state.

Thus, in principle the intention is to make the Treasury which is responsible for refinancing the old debt and new releases it taking advantage of the low cost you are currently paying, so that the lowest possible rate applies.

However, when transferring the cost to communities and municipalities not the type of auction apply but 0%, so that a translation of that cost the government deficit would occur, although Montoro not fear that jeopardize the objective of public deficit by 2015, set at 4.2%.

Montoro always defends the efforts being made to reduce imbalances communities, even in the case of not meeting the deficit targets. Measures such as the pooling at a rate of zero percent not encourage the breach of the deficit.

The minister also stressed that the slippage last year was three-tenths of an “important” figure but his judgment does not mean that “there is no control of the communities.” “Another thing is the warning of what may be a departure this year on schedule, demanding goal, and difficulties in achieving the goals coming years,” acknowledged immediately afterwards.

Montoro also He has insisted that the current year should not pose asymmetric targets, or a relaxation of compliance, however much it is “difficult to make and execute budgets in these conditions.”

More measures The complexity of this mechanism debt and the debate that has led delayed the date of convocation of the Council of Fiscal and Financial Policy until December 23.

In addition to discussing and voting on this issue, the agenda of the Council of Fiscal Policy who has had access to Europa Press, contains other matters:. the distribution of the tax levy on bank deposits, which established several communities until attributed the state last year

The meeting will also serve to approve the so-called social FLA, similar to the existing facility but dedicated to autonomy pay what they owed to municipalities for the services of its jurisdiction having the consistory.

In addition, the ministry will take measures to the Council for contain health spending, as the roof of pharmaceutical expenditure, so that does not grow faster than GDP.

also inform Finance on the degree of compliance with the objectives of budgetary stability and public debt and rule expense in the year 2013.

As in other Councils must also approve the economic and financial plans of various communities, in this case, Catalonia, Murcia, Valencia, Castile-La Mancha and Cantabria.

In addition, the proposed agreement on the assumption of returns arising from the judgment of the European Court of Justice on February 27, 2014 be approved in conjunction with Sales Tax Retailers Certain Hydrocarbons

Information Expansion .

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