Preliminary Bill for the Rationalization and Sustainability of Local Government

14 / 02 / 2013

At its meeting on February 15, 2013, the Council of Ministers received a report from the Ministry of Economy and Public Administration on the Preliminary Bill for the Rationalization and Sustainability of Local Government. Once the appropriate procedure has been followed, the Council of Ministers must approve the preliminary draft statute as a Bill and lay it before the Spanish Parliament for subsequent approval.

The Preliminary Bill seeks to implement a management model for local government oriented by results and with the utmost transparency, aligning it with the principles of budgetary stability and financial stability, as enshrined in article 135 of the Spanish Constitution.

In this regard, the future Law for the Rationalization and Sustainability of Local Government aims to:

Clarify municipal powers, in order to avoid duplication, under the principle of “one government, one jurisdiction.” In particular, the reform defines and specifies the powers that must be assumed by local government. In this respect, education and healthcare powers will exclusively pertain to the autonomous community governments.
Rationalize the structure of local government, by subjecting municipal services to a process of evaluation by the Ministry of Economy and Public Administration
Ensure rigorous economic/financial control, reinforcing the control function in local entities and enabling the Government to establish control procedures.
Implement measures to achieve savings and transparency in relation to the management of public institutions, setting annual limits in the General State Budget on the pay receivable by members of local corporations.

In short, the future Law for the Rationalization and Sustainability of Local Government will be inspired by the principles of stability, financial sustainability and efficiency, and the goal will be to achieve, through this Law, a modern local government that manages its economic resources efficiently.