MORE THAN three years into Europe’s financial and economic crisis, the Spanish town of Parla has run out of cash and credit.
“In the past four years we have lost 25 per cent of our income,” said José María Fraile, the town’s mayor. “At the moment there’s no liquidity . . . The [credit] window has closed.”
Mr Fraile is negotiating with trade unions to fire 190 people, a quarter of the city’s workforce, as a way to save money.
One private company responsible for sports facilities has obtained a court order to sequester municipal assets to cover millions of euro of unpaid debts. Valoriza, another company, is owed €80 million for years of rubbish collection and cleaning.
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Afternoon Updates:
12:13 pm EDT, October 4th, 2011 — Greece Falls Into ‘Death Spiral’: Rising Debt, No Growth
12:15 pm EDT, October 4th, 2011 – Papandreou resignation report is ‘nonsense,’ says spokesman
12:16 pm EDT, October 4th, 2011 — Banks slip down over default fears
12:20 pm EDT, October 4th, 2011 — EU Move to Deepen Oil-Sands Row
12:24 pm EDT, October 4th, 2011 — EU trade deal is riding on changes to Canada’s drug-patent laws
12:28 pm EDT, October 4th, 2011 – EU urges roadmap this year on climate action
12:29 pm EDT, October 4th, 2011 — Britain to the EU: I told you so
