Wednesday, 27 July 2011

Sitges is Not Bankrupt

The new local CiU-lead coalition government of Sitges (Garraf) recently decided to issue a statement that it is not bankrupt, a move motivated by speculations in media throughout Spain. True, the 65 million Euro debt which they inherited from the socialists results in an in a municipal debt rate of 103% v.s. annual revenue, but that is still within the “allowed” limits.

Personally, I am concerned that the Spanish tax system – in general very keen on transfers between different parts of the geography – does not seem able to compensate towns for services offered to tourists. Sitges, for example, has a tax base of 28.000 year-around inhabitants, but houses up to 100.000 people during the summer months.

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Read more in Spanish: El Mundo and El País

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