| To address policies that allow the protection of the population against the consequences of the pandemic | The City Council of Totana has requested the Government of Spain to proceed immediately to the suspension of the rules that regulate the spending rule in order that the municipalities, in a committed economic and financial situation like this, can address policies necessary to allow the protection of the population against the social consequences of the pandemic.The mayor, Juan José Cánovas, today addressed a formal request to the Minister of Finance and Public Administrations, María Jesús Montero, urging the Government to urgently consider that, while the reform of Organic Law 2/2012 is being carried out, of April 27, on Budgetary Stability and Financial Sustainability, this measure is adopted.The City Council of Totanero has requested that the rules that apply in the event of non-compliance with fiscal rules and, specifically, the spending rule, be suspended so that the municipalities can respond, now more than ever, to the needs of your neighbors.The first mayor of Totanero has recognized that, in order to curb this social impact, the Government of Spain has articulated in these weeks a series of financial and budgetary measures to facilitate the action of local corporations in the exercise of their protection and social promotion. Among these, it has been allowed, for example, to allocate the budget surplus of local entities in 2019 to finance investment expenses for social services, which is allowing some municipalities to promote measures for the protection and social promotion of vulnerable people.Despite these measures, the totanero councilor emphasizes that there are still many local entities in Spain that cannot avail themselves of these regulatory provisions due to the unavailability of a surplus, non-compliance with the average payment period, the spending rule or other restrictions that put debt payment before being able to face and respond to the crisis we are experiencing.Juan José Cánovas explained that the town councils have an essential role in managing this crisis; and as such, we are performing it to the best of our ability, to serve the entire population that, from one day to the next, has found itself in an exceptional situation economically and socially.Given this exceptional situation, the European Commission and the Eurogroup suspended the application of the Stability and Growth Pact on March 20, thus opening the door for national governments to increase their public spending as much as necessary to combat the spread of the coronavirus and mitigate its economic consequences, he said.The Mayor of Totanero also recalled that the Spanish Federation of Municipalities and Provinces (FEMP) has also agreed, with a broad consensus, to make the spending rule more flexible so that the City Councils can “participate in the solution in a balanced way, showing how they always did their solidarity with all institutions and their vocation to serve the citizens of their municipalities ”.The mayor of Totana has reiterated that the closest Administration must be allowed to adequately attend to the needs of its population, and that now more than ever the municipalities are at the service of the people; for which the Government of Spain must assume said proposal to make the spending rule more flexible.Real context of TotanaThe City Council has been receiving, since July 2015, extraordinary financing mechanisms through the Management Fund, in such a way that assistance is periodically requested under this tool to be able to face the market credit maturities; for which this entity has a current Adjustment Plan.To this situation it is added that the municipal plenary rejected the modification of Fiscal Ordinances proposed by the municipal Government to be applied in the current year 2020, and which allowed updating part of the municipal income.The City Council has a large number of court judgments whose validity is estimated for this year derived from procedures motivated by the actions of previous legislatures and that weigh down our municipal economic capacity each year, having to constantly go to increase the requests of the Management Fund. So much so that a request from the aforementioned Fund for 2020 is currently in process since September 2019 in which the amount of 12,430,206.14 euros is included to be able to face the payment of three judicial judgments in process.Currently, the Municipal Budget for 2020 is in preparation, since the extended budget for the 2019 financial year is currently in force; although the difficulties to prepare the new budget are being maximum.Finally, with regard to the municipal financial outstanding debt, as of December 31, 2019, it amounts to a total amount of 98,260,543.78 euros, whose information has been reported in detail and updated to the aforementioned Ministry to consider the proposed measure.
