Spanish government organizations owe construction companies 4.5 billion euros. Some have already announced that they will make use of the Ministry of Finance's plan, but that they will not pardon a single euro. Others indicate that they will accept partial payments in order to cover their losses more quickly.
It is critical that companies and government administrations curb the inertia that has led to this situation. The former ought to consider whether the new contracts will be able to guarantee them the same level of revenues. Further, they should not stockpile the money they receive without also paying debts to service and materials providers.
For the government administrations part, they should scrutinize the services that they are offering, make them compatible with Spain's strategy to reduce the national debt and align them with realistic revenue expectations. The state must practice an iron-willed discipline.
