The FEMP supports the Framework Agreement on Sustainability of Public Finances
The FEMP has given its support to the Framework Agreement for the sustainability of public finances for the period 2010-2013, during its meeting today of the Subcommittee on Economic Conditions, Financial and Fiscal National Commission of Local Government (CNAL) in involving representatives of the Government and the FEMP.
The Framework Agreement with local contains the measures and criteria that affect local entities in the Stability and Growth Programme for 2010-2013, the Government sent to Brussels. The concrete proposal stages through which fiscal consolidation will be modulated public accounts, with the aim of reducing the deficit to 3% of GDP up to 2013.
In this regard, representatives of local governments have expressed their commitment to contribute to deficit reduction, containment and improving efficiency in spending, maintaining medium-term debt levels established in the Stability Pact and growth, and improving information and transparency in terms of payment and budgetary expenditure pending application.
Regarding the specific actions that the FEMP has moved to the bosom of the Subcommittee of the CNAL included the authorization to the local bodies to execute and settle the budget for fiscal year 2009 with an overall deficit referred to 0.35% of GDP , without requiring the presentation of economic and financial plans to the Corporation when the budget deficit does not exceed this. The percentage of deficit is 5.17% of non-financial income of each local entity.
It has also agreed to establish a working group within the CNAL to be responsible for developing the content of the Framework Agreement, particularly so in matters related to personnel costs and restructuring and modernization plans of local entities.
FEMP The delegation was composed of the Mayor of Segovia, Pedro Arahuetes, President of the Local Finance Committee of the FEMP, the councilor for Madrid, Juan Bravo, Vice-Chairman, Mayor of Reus, Lluís Miquel Pérez Segura; and Councillors of Cordoba, Alfonso Igualada, and Santander, Ana Maria Gonzalez Pescador
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