Spanish Town Halls in Debt

 

Spanish Ayuntamiento's are on the brink of financial collapse in Spain, and many are reported to be planning a round of redundancies and increased taxes in order to survive.

The collective debts of Town Halls throughout the country has now reached 35 billion €, with Madrid City Hall alone representing 7 billion of that sum - a debt that has doubled in the last five years.

Spanish newspaper, El País, names the La Rioja town of Ochánduri as the most indebted in Spain where it owes 9,810 € per person in the municipality. In over 30 municipalities the debt owed has surpassed 3,000 € per head.

Many Town Halls been hard hit by the collapse in the building market, as 30% of their average income previously came from construction.

Difficult times are expected in the coming months, with reduced services, manpower and increased taxes - but under Spanish law an ayuntamiento cannot go bust or be embargoed.