Tuesday, 6 September 2011
Drastic budget cuts in Vilanova
The CiU government ruling Vilanova i la Geltrú (Garraf) since the May municipal elections, has presented a so called shock plan to address the municipality’s debt and cash situation. Out of a € 113 million total debt, € 64 million is owed to banks, while € 25 million are outstanding payments to providers, with whom the local authorities currently allow themselves a 9 month credit term. Due to the saving plan, municipal services will move out from rented office spaces and civil servants who retire or go on unpaid maternity leave (excedència laboral) will not be substituted. Apart from this, the heavily indebted public company PIVSAM (Promoció Industrial Vilanova, SAM) will file for bankruptcy.
The former Tripartit government accuses CiU of exaggerating the situation and remind them that they rule in minority.
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Read more in Catalan: Diari de Vilanova and Vilanova Digital