"In all the accounts we are finding inconsistent numbers and a lack of transparency," a member of the new Castilla-La Mancha government told elEconomista. The region?s new president, María Dolores de Cospedal, is performing better than expected. Yesterday she announced that the unexplained holes in regional accounts are not 1.7% of her jurisdiction?s GDP as the previous president, José María Barreda, believed.
"They are much worse," she said. "The deficit is greater than 4%." The previous socialist government left an unsavory inheritance for Cospedal to deal with.
Given that the alleged deficit differs greatly from expected, she announced that she will call an urgent meeting with the Secretary of the Economy to "find out in what terms we have to present an economic and financial plan in order for it to be approved by the government."
Castilla-La Mancha cannot prudently issue debt because any further debt will exacerbate an already excessive deficit. A similar situation affects other regional governments in Spain.
