Sanchez announces a royal decree “to make the finances of city councils more flexible”

The new royal decree prepared by the executive proposes to extend the deadlines so that local entities can advance the digitalization of their business processes, a demand that was reaffirmed in recent political contacts that the government has maintained with regional representatives, including the Junts per Cataluña. The aim of this measure is to facilitate the adaptation of electronic invoicing systems and administrative modernization, and to address concerns raised about the tools and times available to municipalities seeking to improve their administration. This line of action, as reported by Europa Press, will be at the heart of the legal package announced by the head of government, Pedro Sánchez, in an interview with the media “Rac1”.

According to Europe Press, Sanchez expects the imminent approval of this royal decree in the Council of Ministers on Tuesday, which will enable the establishment of a new framework for the regulatory work of city councils. The president explained that the aim of the regulations is to provide mayors and municipal governments with more independence and new investment capabilities, especially in projects far from normal spending. The change seeks to cover historical demands for more flexibility to enhance public housing construction initiatives, water management, and other axes that are considered strategic in local development.

Europa Press reported that the legal package is directed at city councils across the country, although it explicitly acknowledges claims brought by Catalonia through Junts per Cataluña, a political group that supports part of the current legislature. The Executive therefore takes ownership of the delays and non-compliance publicly reported by this group, and is committed to addressing the most pressing issues on the pending domestic agenda. Sánchez, during the above-mentioned interview, took responsibility for the delay and explained that the progress achieved in the Royal Decree reflects the direct result of the negotiations conducted between the government and the Junts per Cataluña.

As Europe Press reported, the expected reform does not mean an increase in current municipal spending; It focuses on creating new financial margins for specific investments linked to strategic development. After years in which state regulations on budget stability imposed strict restrictions, the measure seeks to give boards real independence in making investment decisions. In the words of Sánchez, as reported by the media, the proposal opens the possibility for municipalities to respond with greater flexibility to specific regional challenges and needs.

The new legal framework responds to the financial structure of municipalities and demands for greater budgetary sovereignty, according to Europa Press. Local officials, especially in Catalonia, have demanded greater ability to decide where resources go and implement strategic projects. This request comes after the experiences accumulated during periods of restrictions imposed at the state level, which had a full impact on enhancing housing initiatives and effective management of water resources. Sánchez repeatedly stressed that public housing and water-related services do not constitute a closed list, but rather that the final scope of the reform will allow the deployment of new measures that respond to growth and creativity in each local area.

The legal package, as Europa Press has confirmed, arose largely from a process of political dialogue between the central executive and the Juntas per Catalonia, after weeks dedicated to transferring political commitments into organizational plans that strengthen municipal autonomy. Hence, the reform is designed as a priority tool to overcome barriers and modernize local public administration, addressing the social scenario and new technological and commercial requirements. Sánchez stated during the interview, according to a Europa Press report, that the changes included are intended to benefit all city councils in the country, and not exclusively a particular autonomous region.

Regarding the practical scope of this measure, Europe Press explained that financial flexibility will allow municipalities to enhance investments in areas classified as priorities, without the need to adjust the structural criteria for usual spending. In addition, it is planned to adapt processes that will have a particular impact on small and medium-sized companies that regularly cooperate with the local administration, and which are forced to update their systems to be compatible with electronic invoices.

The media added that the publication of this announcement coincides with a phase of ongoing negotiation between the executive authority and the various parliamentary blocs, as adherence to previous agreements has become an essential element of legislative stability. Sánchez stressed that addressing these claims would facilitate political coordination and help to materialize commitments with strategic partners, such as the Junts per Catalonia, through specific legal instruments that promote administrative modernization.

Europe Press concluded that the technical details and final scope of this royal decree will be subject to formal discussion in the Council of Ministers, at which time the details of the powers and flexibility tools that will be available to local entities will be known. The completion of this proposal is presented as a direct response to the criticisms collected during the parliamentary negotiation process, which seeks to promote a greater capacity for action of Spanish municipalities with regard to investments, modernization and strategic management.