Monday, July 04, 2005
Valencia Life: DEBT AND THE COMMUNITY
According to figures released yesterday by the Bank of Spain, the debts of the Valencian Community up to the end of March this year stood at 9,538 million Euros – the third largest in Spain. Ahead of the Community in indebtedness were Catalunia with a debt of 13,184 million Euros and Madrid with 10,014 million Euros. These figures represent a 10.9% increase over the same period last year, with the Valencian Community situated at the head of the ratio debt/gross Domestic Product with a figure of 11.5%, followed by Catalunia with 8.4%, Galicia with 7.1%, Madrid with 6.8% and Andalucia with 6.4% all of whom were above the national average of 6.3%. The debts of the Town Halls of the Cities whose population was more than half a million people, such as Madrid, Malaga, Seville, Valencia and Zaragoza increased by 19.3% to 5,544 million Euros. The largest increase in Town Hall debts was registered by Madrid, which increased by 75%, whilst in contrast Barcelona Town Hall managed to reduce its debts by 15%. Comment: The debt of the Valencian Community (pop about 4.7 million) is increasing by several hundred million Euros per year according to other reports ( About €200 million in the first quarter of 2005). This while the Community receives the highest subsidies, per capita, in Spain. Meanwhile how much money flows out to "fiscal paradises"? It is difficult to obtain current figures, but El Caixa bank reported that from August 2002 to August 2003, just under €400 million was sent from the VC to such overseas locations. The VC'c debt is about the same as the national debt of Kenya! (For those here in Benissa, it's interesting that with about 12,000 taxpayers, the debt is over €25 million with an annual deficit of some €3 million.)Spain's incoming foreign direct investment in 2004, according to figures released last week, was down over 60% from 2003, to a paltry €1 Billion. Who pays the bills?
According to figures released yesterday by the Bank of Spain, the debts of the Valencian Community up to the end of March this year stood at 9,538 million Euros – the third largest in Spain. Ahead of the Community in indebtedness were Catalunia with a debt of 13,184 million Euros and Madrid with 10,014 million Euros. These figures represent a 10.9% increase over the same period last year, with the Valencian Community situated at the head of the ratio debt/gross Domestic Product with a figure of 11.5%, followed by Catalunia with 8.4%, Galicia with 7.1%, Madrid with 6.8% and Andalucia with 6.4% all of whom were above the national average of 6.3%. The debts of the Town Halls of the Cities whose population was more than half a million people, such as Madrid, Malaga, Seville, Valencia and Zaragoza increased by 19.3% to 5,544 million Euros. The largest increase in Town Hall debts was registered by Madrid, which increased by 75%, whilst in contrast Barcelona Town Hall managed to reduce its debts by 15%. Comment: The debt of the Valencian Community (pop about 4.7 million) is increasing by several hundred million Euros per year according to other reports ( About €200 million in the first quarter of 2005). This while the Community receives the highest subsidies, per capita, in Spain. Meanwhile how much money flows out to "fiscal paradises"? It is difficult to obtain current figures, but El Caixa bank reported that from August 2002 to August 2003, just under €400 million was sent from the VC to such overseas locations. The VC'c debt is about the same as the national debt of Kenya! (For those here in Benissa, it's interesting that with about 12,000 taxpayers, the debt is over €25 million with an annual deficit of some €3 million.)Spain's incoming foreign direct investment in 2004, according to figures released last week, was down over 60% from 2003, to a paltry €1 Billion. Who pays the bills?
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