Spain's town hall meltdown

Cuts are now biting deep into civic life. One council has even bet its budget on the lottery

If Carmen Martinez Gomez, a nurse, wants to see the effects of the dramatic spending cuts Spain is currently enduring, all she has to do is glance down from her seventh-floor balcony at the building work below on the Metro, Granada's first underground line.

It is less than 10 miles long, but the Metro has already been five years in the making. And with its workers unpaid since January, its inauguration has just been put back again, reports said last week, until 2013. "It feels as if it's never going to be finished," Ms Martinez says. "The whole of Camino de Ronda" – three miles long and one of Granada's main arterial streets – "looks as if a bomb hit it. Shops are going out of business because there's virtually no through traffic, and for the elderly and disabled it's very difficult to cross the road. The project has split the city in two."

The reason for the interminable delays in Granada's Metro is simple: no money – and it's a grimly familiar story. As early as this summer, Pedro Arahuete, mayor of Segovia and president of the country's federation of municipalities, said that 40 per cent of Spain's town halls or ayuntamientos were in severe economic difficulties, or, as he graphically put it, being "financially strangled". And all across Spain, ayuntamientos and regional councils such as Andalusia's Junta, which is financing the Granada Metro's construction, are in the process of making massive cuts, with about €5bn due to be pruned from budgets across Spain in 2012's last quarter alone.

But with a total town hall debt government figures show to be nearly eight times that amount – €37bn – the cuts are far from being the last notch set to be tightened on Spain's collective belt. They are largely designed to bring a public deficit into line with EU ceilings of 3 per cent of GDP in 2013 at a painfully fast pace. The most dramatic steps to try to balance the books are being taken in the village of Cacabelos in Castile. With his village facing debts of €1m, the mayor's brainwave was to bet the annual budget on the national lottery. Their number did not come up.

In the southern city of Jerez, with debts of €957m, local police now use cars impounded from convicted drug dealers. However, at least that is one step up on their colleagues in the Murcian town of Moratalla, who are now forced to carry out their patrols on foot after they ran up a debt of €120,000 in petrol at the local garages. Further south in Coin, meanwhile, the street lighting now works only intermittently because of an outstanding debt of €240,000 to electricity company Endesa. Even in Catalonia, one of Spain's richest regions, there are near-bankrupt towns such as Moia, where in August the debt reached €25m or 400 per cent of its annual budget. The town's mayor warned that it could no longer afford to bury the dead.

All this is nothing in comparison, though, with the village of Peleas de Abajo in western Spain, whose villagers – faced with a debt of €18,400 per inhabitant – will take a mere 500 years to pay it off. The municipal properties are now reduced to just one building, the town hall itself, and one employee.

The ayuntamientos are far from being the only Spanish institutions up to their necks in debt. In the region of Castile-La Mancha, for example, its health service, Sescam, admits it has no fewer than 159,000 separate unpaid bills. As a result, women there can no longer have abortions because the private clinics Sescam uses, at a rate of 1,000 terminations a month, have not been paid since last December.

While Castile-La Mancha is now cutting its public spending by a whopping 20 per cent, the central government has led by example. The Prime Minister, Jose Luis Rodriguez Zapatero, has already cut civil servants' wages by 5 per cent and government ministers' salaries by 15 per cent, frozen pensions for year, and ended the €2,500 "baby cheque" given to each family with a newborn.

Last month, with a general election looming, Mr Zapatero took things even further. In the first big change to Spain's constitution since 1978, he pushed through a constitutional budget cap for deficits – a policy his Socialist Party had previously criticised.

Yet the roots of the problem stretch seemingly beyond the control of any single government. Across Spain, before the economic recession started in 2009, what felt like an endless series of credits allowed town halls to spend way beyond their means. Take Granada's Metro. Building work began in 2007, and by May this year, 73 per cent had been constructed. But since then, only 1 per cent more has been built – and three local town halls, including Granada, have said they are not paying a cent more to fund it.

It is hard to find a Spanish city, in fact, without its own particular white-elephant project from the boom years. In Aviles in the north, the €44m Niemeyer arts centre which had been compared to the Guggenheim museum in Bilbao has closed after six months. In Tardienta, Aragon (population approximately 1,000), the gleaming high-speed train station is used by 22 passengers a day. In Huesca in the Pyrenees, a new €40m airport has received four commercial flights in three months of service. In Castellon, close to Valencia, a €150m airport was opened in March, but its first flights will not be until at least April next year.

Sebastian Martinez, a town councillor in Linares, a medium-sized Andalusian city with one in four adults out of work after a car factory shut its doors, said: "You can't help wondering how far this will go before there's some kind of major social fracturing."

If this does happen, then a completion date for the Metro in Granada will probably be the least of Spain's worries.

News
A 1930 image of the Karl Albrecht Spiritousen and Lebensmittel shop, Essen. The shop was opened by Karl and Theo Albrecht’s mother; the brothers later founded Aldi
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmA cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Arts and Entertainment
Flora Spencer-Longhurst as Lavinia, William Houston as Titus Andronicus and Dyfan Dwyfor as Lucius
theatreThe Shakespeare play that proved too much for more than 100 people
News
exclusivePunk icon Viv Albertine on Sid Vicious, complacent white men, and why free love led to rape
PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
Stir crazy: Noel Fielding in 'Luxury Comedy 2: Tales from Painted Hawaii'
comedyAs ‘Luxury Comedy’ returns, Noel Fielding on why mainstream success scares him and what the future holds for 'The Boosh'
Life and Style
Flow chart: Karl Landsteiner discovered blood types in 1900, yet scientists have still not come up with an explanation for their existence
lifeAll of us have one. Yet even now, it’s a matter of debate what they’re for
Arts and Entertainment
'Weird Al' Yankovic, or Alfred Matthew, at the 2014 Los Angeles Film Festival Screening of
musicHis latest video is an ode to good grammar. But what do our experts think he’s missed out?
Sport
New Real Madrid signing James Rodríguez with club president Florentino Perez
sportColombian World Cup star completes £63m move to Spain
Travel
Hotel Tour d’Auvergne in Paris launches pay-what-you-want
travelIt seems fraught with financial risk, but the policy has its benefits
Arts and Entertainment
booksThe best children's books for this summer
Life and Style
News to me: family events were recorded in the personal columns
techFamily events used to be marked in the personal columns. But now Facebook has usurped that
News
news
News
i100
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Sustainability Manager

Competitive: The Green Recruitment Company: Job Title: Scheme Manager (BREEAM)...

Graduate Sustainability Professional

Flexible, depending on experience: The Green Recruitment Company: Job Title: T...

Programme Director - Conduct Risk - London

£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...

Project Coordinator/Order Entry, SC Clear

£100 - £110 per day: Orgtel: Project Coordinator/Order Entry Hampshire

Day In a Page

Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

Noel Fielding's 'Luxury Comedy'

A land of the outright bizarre
What are the worst 'Word Crimes'?

What are the worst 'Word Crimes'?

‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
Can Secret Cinema sell 80,000 'Back to the Future' tickets?

The worst kept secret in cinema

A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Facebook: The new hatched, matched and dispatched

The new hatched, matched and dispatched

Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
Why do we have blood types?

Are you my type?

All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
Honesty box hotels: You decide how much you pay

Honesty box hotels

Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit
Commonwealth Games 2014: Why weight of pressure rests easy on Michael Jamieson’s shoulders

Michael Jamieson: Why weight of pressure rests easy on his shoulders

The Scottish swimmer is ready for ‘the biggest race of my life’ at the Commonwealth Games
Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn