Source: SEFO (Funcas) | 20/07/2023
The article, written by Ana Aguerrea, examines the fiscal sustainability of Spain’s local governments. Although most municipalities have managed to achieve balanced budgets, over 100 of them face fiscal sustainability issues due to high levels of public debt. To address these challenges, the article suggests implementing policy measures aimed at restoring fiscal sustainability and holding local authorities responsible for the restructuring process. The article analyzes the defining characteristics of municipalities with sustainability problems and finds that the majority of them are small towns with populations of up to 1,000 inhabitants. Despite past efforts to address the issue, the article concludes that the identified municipalities’ debt problem is an entrenched issue that requires new solutions.