Background information

The Council of Ministers has approved the Royal Decree-Law on financial measures, of an extraordinary nature, for Local Entities. This norm includes the agreement reached between the Ministry of Finance and the Spanish Federation of Municipalities and Provinces (FEMP), which will allow mobilizing up to €5,000 million for municipalities with treasury remnants and allocating them to programs of proximity care, mobility, housing, development sustainable development and promotion of cultural activity.

With this measure, the Government shows its commitment to the Local Entities by meeting one of the historic requests and allowing for the first time that the surpluses accumulated over the years are translated into greater spending capacity. It also strengthens local autonomy by increasing its income and expanding the capacity of the municipal administration to respond to the needs of citizens in a time of health emergency.

Content of measure

City councils will be able to allocate the €5,000 million to large areas such as care policy, sustainable mobility, the urban agenda or support for culture. Specifically, and among many other measures, the municipalities will be able to use the resources that the State will transfer to them to increase services and programs for the elderly, dependent or disabled; reinforce the home help system and the Telecare service; improve care services for victims of gender violence; build and improve nursery schools between zero and three years old; increase rental housing at affordable prices; promote sustainable mobility with the construction of cycle lanes, develop actions in environmental protection areas or approve policies to support cultural promotion.

Use of measure

No data available.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Local / regional government EU (Council, EC, EP)	European Funds Local funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement was reported.

Views and reactions

No views have been reported.

Sources

• 04 August 2020: Real Decreto-ley 27/2020, de 4 de agosto, de medidas financieras, de carácter extraordinario y urgente, aplicables a las entidades locales (www.boe.es)