News

politics

State to directly control Catalonia's liquidity fund

In what acting president of the Generalitat, Artur Mas termed “an end to Spain's system of autonomies”, details of the control that central government will exercise over the use of the so-called Liquidity fund for regional governments are becoming known, especially in regard to Catalonia. This particular fund is designed to aid the autonomies in meeting commitments to local debt and is separate to the normal regional funding. Cristobel Montoro's ministry has elaborated a list of areas to which the fund can be applied in Catalonia, and in a separate section, a proviso for areas which they may not be used. Funds cannot be used for financing culture, agriculture and communication. The priorities which can benefit from the fund fall into the areas of health, education and social services, followed by justice, public safety and infrastructure. Once accumulated debts in these areas are paid, what is remaining from the fund can be used in other areas. In fact, the fund itself never reaches Catalonia, rather, the Generalitat sends the list of commitments to Madrid and payment is made directly from there.

Sign in. Sign in if you are already a verified reader. I want to become verified reader. To leave comments on the website you must be a verified reader.
Note: To leave comments on the website you must be a verified reader and accept the conditions of use.