Agreement on a recovery budget in Barcelona

BarcelonaThe government of Ada Colau and Esquerra Republicana has reached an agreement to give the green light to the 2021 budget of the city of Barcelona, as advanced yesterday by the ARA. This morning they verbalized the agreement in a press conference in which the mayoress Colau and the leader of ERC in the city council, Ernest Maragall, announced a "great progressive budget agreement". The City Council will approve the budget proposal in the plenary session this Wednesday with at least the votes of the Republicans. The new accounts mark a record figure of 3,231 million euros (6.5% more than the current one) and foresee, in the context of the current crisis, an increase in debt of 150 million. "We have the necessary resources and we can get into debt", Maragall said in this regard. This will be the second budget that the council's government has agreed with ERC, since last year an agreement was also reached with the Republican party.

These budgets, in Colau's words, must allow for "recovery and transformation of the economy". In other words, they will allow first for a recovery of the covid-19 crisis, and then for an encouragement of the economy in order to transform itself. "It is also a budget that aims to combat inequalities" the mayor added. Maragall signed the agreement and agreed with most of Colau's words, but he was clear in demanding that the pact of accounts be fulfilled: "The City Council signs a contract of obligation with the citizens". To monitor the implementation of the budget agreements, Maragall has announced the creation of a bilateral table that will closely follow the development of Barcelona's accounts.

The agreement brings together, so far, comuns, the PSC and ERC, but Jaume Collboni, first deputy mayor, has not closed the door to other partners. "These budgets do not exclude anyone, we will continue with the dialogue", said the PSC leader in the council. In fact, the 2020 accounts ended having the last minute support of JxCat, and the agreement had two photos: that of Ernest Maragall (ERC) and Ada Colau (comuns) shaking hands, and then the one that incorporated Elsa Artadi, from JxCat, and Jaume Collboni, from the PSC.

Now, however, JxCat has not yet been added to the photo, and this morning it was once again time for Colau, Maragall and Collboni. This will be a pact for the 2021 budgets that leaves the following key points:

Reinforcing social services

Social spending in Barcelona will be increased by 25 million euros. This increase in current expenditure will be used to establish a childcare fund, increase rental subsidies for vulnerable families and open a new call for subsidies for single-parent families.

Protective housing and infrastructure improvement

One of ERC's main budget demands was to expand the stock of social housing. This has occurred, since the agreement includes allocating 50 million to the purchase of housing in Barcelona. According to the agreement, most of this money will be prioritized for the purchase, off plan, of 30% of the subsidized housing in private developments.

Not only will it be invested in housing, but some municipal public infrastructures will also enjoy an economic injection. This will be the case for school facilities, which will have a fund of 26 million euros for their rehabilitation, extension and improvement. District and neighbourhood administrations will also see their public coffers increase, as a fund of 30 million will be allocated to them.

Balance in taxation

"We want to maintain Barcelona's fiscal capacity, but we also want to be sensitive to emergency situations and help the sectors most affected by the pandemic", said Maragall. And this is the summary of the fiscal policy of the new budgets, which tries to give air to the sectors most affected by the covid-19 crisis and at the same time seeks to maintain income from fees and taxes in the City Council so that it continues to have purchasing power to invest.