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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VN:F [1.9.22_1171]Spanish towns running out of cash and credit (14),