July 29, 2021

The Federation of Municipalities postpones its Meeting after offering an additional 5,000 million Treasury




The Federation of Municipalities and Provinces (FEMP) has postponed to Monday in the absence of support, the extraordinary Board who expected to vote this Friday the proposal of the Treasury on the surplus of the municipalities after a new government document that offers local governments an additional 5 billion from the state budget.

Sources of the negotiation have reported that the new proposal economically improves the last text by providing municipalities with 5,000 million of the General State Budgets in a lost fund, but that money would only be for municipalities that voluntarily transfer their remnants to the State, and that he agrees to return one hundred percent.

The decision to postpone the extraordinary meeting has been taken by the Board of Spokespersons after verifying that the Treasury proposal that allowed municipalities to mobilize their remnants, only had the approval of the socialists and therefore could not get ahead.

The last-minute negotiations of the socialists with IU-Podemos to get their support have failed and this municipal group issued a statement last night asking for the return to the Government of the text of the Treasury for a “wide and plural” negotiation, in line with the traditional consensus with which the FEMP has sealed its agreements.

With remnants and without spending rule

Apart from that extra fund of 5,000 million from public accounts, the Treasury maintains the proposal of the remnants, that is, that the municipalities voluntarily constitute a loan in favor of the State for the value of your savings and that you would return in 10 years, starting in 2022.

The new document, which throughout the day will be delivered to the different political formations with representation in the FEMP, maintains the abolition of the spending rule in 2020, funds for transport and the participation of municipalities in European funds, in other matters.

It remains to be seen whether it will include a section on economic improvements for municipalities that have no remnants, a request that IU-Podemos has signed, but also PdeCat, Cs and the PP.

For the PP in the FEMP, the new proposal may be even more “unacceptable” than the previous one because of the “grievance” that it would generate between municipalities with and without remnants.

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