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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure ES-2020-32/1303 – measures in Spain

Extraordinary financial measures for local entities

Real Decreto-ley de medidas financieras, de carácter extraordinario, para las Entidades Locales

Country Spain , applies locally

    • – ES1 NOROESTE
      – ES2 NORESTE
      – ES4 CENTRO (ES)
      – ES5 ESTE
      – ES6 SUR
      – ES7 CANARIAS
Time period Open ended, started on 04 August 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Oscar Molina (UAB) and Eurofound
Measure added 22 October 2020 (updated 03 November 2020)

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


No involvement was reported.

Views and reactions

No views have been reported.


  • 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 (


Eurofound (2020), Extraordinary financial measures for local entities, measure ES-2020-32/1303 (measures in Spain), EU PolicyWatch, Dublin,


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