Regional Spanish debt grew by 26.4 percent in the first quarter of 2011, to 121,420 million euros. An unsustainable rate that seems completely inappropriate in a time of crisis where austerity is required.
We must also take in consideration the fact that there is still a big amount of money to add to the total sum, like the one coming from public companies dependent on regional administrations and the debt that will arouse after political changes take place in Regional Governments.
This is coupled with double-digit increases in Federal government´s debt... so the toxic federal mortgage is still increasing. Instead of living beyond their means and issuing bonds of patriotism, the Regional Governments (also known as Comunidades Autónomas) must cut expenses.
