Spanish regional governments have only managed to close a quarter of their public organizations, which is not enough considering their deficit is still out of control and the EU is calling for more cutbacks. The regions still run 1,945 organizations, which is beyond the 1,579 organizations that the Finance Ministry thinks is reasonable.
We are talking about 2 billion euros in savings, a significant amount that could help clean up regional balance sheets. The real problem is that structural spending is bloated. Lowering taxes and helping to create jobs is a key focus now, and to do both things the regions will have to go on a strict long-term diet instead of relying on a little inpatient touch up here and there.
