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The City requires the Central Government for urgent reform of local finance (22/09/2008)

The Municipal People's Party in the city of Murcia rise next Thursday, September 25, a motion to the House of the Corporation requiring the Central Government for urgent reform of local financing for which will require a simultaneous agreement and connected to autonomous communities and local authorities.

The Mayor of Murcia, Miguel Ángel Cámara, who appeared this morning before the media, stressed that "it is a historical claim, which has now been revealed as the economic crisis we are facing."

"We can not continue with a government that can not deal with decisions and actions, actions that contribute to overcoming the economic crisis in which we live.

We can not tolerate the lack of responsibility and decision of the Finance Minister then transfer the economic crisis municipalities and ultimately to the citizens. "

The goal is that by the end of the year, local authorities have clear and precise rules to suit their real financial needs, we granted more regulatory power and solve the deficit driven by inappropriate service delivery.

For the PP, acting economic crisis is showing imbalances in local funding model, which can very seriously affect the shape and quality of service delivery to residents by councils.

Importantly, the financial situation of many municipalities is still challenging and has deteriorated substantially in recent months.

The overall decline of the Spanish economy has a particular impact on municipal coffers where, for example, local revenues linked to economic activity are declining and they have ceased to be taken as 20% of total revenues of municipalities.

To this must be added the difficulty of access to credit, which is higher than other administrations, as well as difficult to meet the requirements of fiscal stability despite austerity plans that many municipalities are passing now.

If these factors are added to the structural problem of local funding that is being dragged in Spain in the last 30 years because, among other things, the services provided by municipalities without its competition is required to implement immediately and institutional reforms in the field of finance to enable start to solve this problem.

From the Popular Party says it is the duty of the Central Government to recognize the important work and effort on economic dependency, security, education, etc.

municipalities are developing today.

The negotiation and implementation of a new local funding must be imminent and simultaneous regional reform.

They should also established the foundations of the Local Agreement for the transfer of powers and funding from the Autonomous Communities to Local Authorities.

Remember that on 27 May, the FEMP Executive Committee adopted a resolution reiterating the need to address the reform of local finance as a whole and as a whole, also stating that the negotiations should be conducted simultaneously and linked to the regional financing.

All this in the context of commitments made by the Government.

The increase in registered unemployment rate that falls mainly in the construction sector, low employment trends and the reduction in GDP growth forecasts are enhanced by growth forecasts for 2009 less than 1%.

In this context, the figures put forward by the Ministry of Economy and Finance for the Participation of Local Government Revenue in 2009 are very disturbing and made local coffers to the brink (as income and property tax are seeing significantly reduced by the crisis and the use of debt is much more inaccessible than the State or the Autonomous Communities).

If this forecast materializes, local authorities will lose funding in real terms by almost 700 million euros, by the practice of freezing payments on account in 2009, given that the CPI probably can be placed by 4%.

Besides demanding an urgent reform the funding system, the motion was presented the following demands:

That the future reform of the Basic Law on Local Government to address definitively the precise delineation of the powers of municipalities, in order to avoid l current situation improper assumption of jurisdiction.

Requiring the government of José Luis Rodríguez Zapatero the urgent creation of a Local Council Financial Policy, which meets quarterly with the Directors General, and with the participation of the Spanish Federation of Municipalities and Provinces, the largest municipalities in Spain and representing medium and small municipalities to discuss issues of bilateral interest: updated cadastre, state transfers, management and administrative cooperation agreements.

Require the National Government an increase in State Revenue Participation by Local Authorities for the year 2009.

Request the President of the Spanish Federation of Municipalities and Provinces, holding a Special Meeting of the FEMP claiming local finance reform, fiscal stability and the consolidation of local governments, so as to ensure Local Authorities citizens the services they need under conditions of equality and equity and to achieve political and institutional weight that corresponds to the local entities as closest government.

Source: Ayuntamiento de Murcia

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