Jaime Martínez Llabrés participates in the meeting of the FEMP where the central government has been demanded the approval of a Royal Decree addressing the situation generated with the financing of the municipalities
The Federation also demands the flexibility of fiscal rules to act on housing matters
Palma, May 27, 2025 – The Mayor of Palma, Jaime Martínez Llabrés, participated on Tuesday in the meeting of the Governing Board of the Spanish Federation of Municipalities and Provinces (FEMP), held in Madrid, where it was unanimously approved to demand the central government the creation of a specific Royal Decree addressing the «alert situation» generated by the financing of municipalities.
Specifically, the Government is requested to update the advances on account to local governments for their participation in state taxes, so that they are referenced to 2025, and also to address local financing so that local governments can allocate the use of their surpluses to financially sustainable investments.
The FEMP will send this request to the Minister of Finance, María Jesús Montero, after her response to the letter sent by the Federation, warning about the urgency of updating the advances to the figures announced last July.
According to the FEMP, the Vice President attributed this lack of update to the non-approval of Royal Decree-Law 9/2024 and urged the approval of the General State Budgets for the definitive update of the advances.
Therefore, the solution proposed by the Federation to advance in both this issue and the use of surpluses for financially sustainable investments and local financing is the specific Royal Decree formula.
For the FEMP, it is essential to have a solution to these two issues as soon as possible for two reasons. On the one hand, for the advances on account, identical to those of 2023, which amount to nearly 4.3 billion euros less than those announced by the Ministry itself in July of last year, an announcement based on which this year’s municipal budgets were prepared and are now insufficient.
And, on the other hand, regarding the use of surpluses and the flexibility of fiscal rules, the FEMP has referred to local action in housing matters, stating that given the current housing emergency, local entities must be given the possibility to act decisively in this area by flexibilizing fiscal rules so that housing actions can be carried out for up to four years without counting towards the spending rule.
These issues, as reported to the Governing Board, will be discussed at the Conference of Presidents on the next day 6, in Barcelona, where topics related to housing and vocational training will be addressed.
During the meeting held on Tuesday, the need to focus attention on aiding those affected by DANA was also discussed, and three new collaboration agreements and an Institutional Declaration were approved in light of the celebration of the International Day of LGBTQ Pride on June 28.
FUENTE