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The formula “imaginative”, in the words of the Finance minister María Jesús Montero, has not only broken the consensus inside the Spanish Federation of Municipalities and Provinces (FEMP) and the Government, but that it was necessary to go to the casting vote of the president of the institution, the mayor of Vigo Abel Caballero (PSOE) , for the adoption of the proposal. They couldn’t even count on the support of its partners of United we Can, which opted for a diplomatic abstention. Now, the publication in the BOE of this agreement – in the form of Royal Decree – Law – holds a fundamental change in the last hour.
In particular, popular representatives on the EMFF as José María García Urbano, the mayor of Estepona and vice-president of this institution, have reported that in the text published in the Official Bulletin of the State was extended from 10 to 15 years the period for the return of the remaining councils on the part of the State, when he signed hours before the stipulated specifically 10 years.
Since Treasury have acknowledged that this point could have been “better drafted” initially, and have pointed out that “it offers to the councils to return to the term of ten years.” From the Ministry have reminded that in the point-quarter of what was signed in The Moncloa, on Tuesday, ensured that “the full amount of the loan will be amortized ten years , starting with 2022,” and added that “local authorities may voluntarily apply for a longer term if the General Directorate of the Treasury and Financial Policy to provide more advantageous conditions”.
From the department headed by Maria Jesus Montero have pointed out that this last step opens up to the possibility that this deadline would be extended , as specified in the BOE. In the press release sent to the press yesterday, pointing to “the term could reach 15 years if the Direction of the Treasury and Financial Policy provides more advantageous conditions”.
So was the written original of the agreement
well, hours later, in the BOE appeared to this provision: in particular, In the article 3.2 of the Royal Decree-law 27/2020 , of 4 of August, of financial measures, extraordinary and urgent, applicable to local entities: “The principal amount of the loan will be amortized by the General Administration of the State within a maximum period of fifteen years , starting in 2022″.
This is the layout of the BOE
Tacky and unacceptable.
The BOE has published that the Government of Pedro Sanchez does not we will return the savings seized by the municipal councils in 10 years, as they had said. I returned in 15 years! The PSOE deceived us all. pic.twitter.com/CmZsZ3jdL2
— Jose M Garcia Urbano (@JMGarciaUrbano) August 5, 2020
As approved, includes the commitment of the Government to bring forward the councils of at least 35% of the remaining “borrowed” by the General Administration of the State , but shaping his destiny to be spent in three priority areas: Urban Agenda and Sustainable Mobility, Care, Proximity and Culture.”
The agreement also includes the distribution of 5,000 million with a charge to the General Budgets between the municipalities with remnants. An amount that will be distributed in two parts: 2,000 million this year and another 3,000 for the coming . Later, ceded to the State will be returned to the municipalities in a new “maximum period” of 15 years. “The transfer is the only way to use the remnants. After surrender them to the State, it sends them back to us free of deficit, and ready-to-spend”, argued the mayor of Vigo on Monday.
Also included are other provisions, such as the establishment of a credit extraordinary (a fund) of € 275 million, expandable to 400 million, is managed by the Ministry of Transport to address the deficit in this area, by the direct impact of the pandemic (a drastic cut in service by the confinement).
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