DOW JONES
23:12:02
21.636,78
-4,06%
-915,39pts
Election day yesterday gave the popular party one of its greatest victories and, conversely, a historic defeat for the Socialists. In the municipal elections, the party leader Mariano Rajoy scored nearly 10 points ahead of the Socialists and the regional, overturning the vote on territories historically faithful to the PSOE.
The regional map of power in Spain has transformed in many territories and one of the immediate consequences will expose debt on current Executives. The very first estimates of excess debt that election winners will face is over 10,000 million euros in the Autonomous Regions. This estimate does not contemplate the municipalities that switch rules. In these, the expected gaps will also be great.
According to the Popular Party, the budget gap in Castilla-LaMancha is 6,000 million euros. There is 2,000 million to add from Balearic and another share in Aragón and Cantabria.
Government in the latter autonomous community depends on the post-electoral pacts, just as Asturias. A special case is Extremadura, where not even the Popular party dares to estimate the gaps, given the lack of information that supposed not to have been close to the power in 30 years.
In any case, the percentages of the public deficit of the autonomous communities in the possession of Ministry of Economy and Finance will be higher and will soon know the real numbers for Aragón, Baleares, Castilla-LaMancha, Cantabria and probably Extremadura and Asturias.
The quoted amount would correspond to excess debt of autonomous governments. Much of this debt is based on lack of payment to suppliers, as lump sum, or even approximately, it is difficult to calculate. The creditors are in many sectors and only some partial amounts contributed by employers and organizations are currently known.
Thus, the autonomous communities owe 15,000 million euros to the health sector alone, as stated by Lorenzo Bernaldo de Quirós, president of Freemarket CI for elEconomista. "It will take a few months until we know the effect on business. You can get to push many of them, pending payment of local government, to close, given that central government is in no position to come to his aid, " recently noted economics professor at ESADE Business School , Pere Puig Bastard.
