The “imaginative” formula, in the words of the Minister of Finance María Jesús Montero, has not only broken the consensus within the Spanish Federation of Municipalities and Provinces (FEMP) and the Government, but it was necessary to go to the casting vote of the president of the institution, the mayor of Vigo Abel Caballero (PSOE), for the proposal to be approved. They could not even count on the support of their partners at Unidas Podemos, who opted for a diplomatic abstention. Now, the publication in the BOE of this agreement – in the form of a Royal Decree-Law – contains a fundamental last-minute change.
Specifically, popular representatives in the FEMP such as José María García Urbano, mayor of Estepona and vice president of this institution, have denounced that in the text published in the Official State Gazette the term for the return of the remnants was extended from 10 to 15 yearsof the municipalities by the State, when what was signed hours earlier specifically stipulated 10 years.
Specifically, what was signed at Moncloa on Tuesday morning stated exactly that its fourth point that “the full amount of the loan will be amortized within ten years, from 2022 “and added that” local entities may voluntarily avail themselves of a longer term if the General Directorate of the Treasury and Financial Policy offered more advantageous conditions “.
Well, hours later, in the BOE this provision appeared: Specifically, in article 3.2 of Royal Decree-Law 27/2020, of August 4, on financial measures, of an extraordinary and urgent nature, applicable to local entities: «The principal amount of the loan will be amortized by the General State Administration within a maximum period of fifteen years, from 2022 ».
Unpresentable and inadmissible.
The BOE publishes that the Government of Pedro Sanchez will not return the savings seized to the municipalities in 10 years, as they had said. They will return it in 15 years! The PSOE has deceived us all. pic.twitter.com/CmZsZ3jdL2
– José M García Urbano (@JMGarciaUrbano) August 5, 2020
The approved includes the Government’s commitment to distribute 5,000 million of the budgets among the municipalities with remnants, and that local authorities “voluntarily” they will make their treasury available to the Government. In exchange, the State agrees to transfer them 2,000 million of its remnants this year and another 3,000 next year. Subsequently, what is transferred to the State will be returned to the municipalities in a new “maximum term” of 15 years. “The transfer is the only way to use the remnants. After handing them over to the state, it returns them to us free of deficits and ready to spend, “argued the mayor of Vigo on Monday.
Other provisions such as the establishment of a extraordinary credit (a fund) of 275 million euros, expandable to 400 million, managed by the Ministry of Transport to face the deficit in this matter, due to the direct impact of the pandemic (drastic cut in service due to confinement).