Coin, near Malaga in southern Spain, is, like many towns across the crisis-hit nation, on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m)

 

Coin, near Malaga in southern Spain, is, like many towns across the crisis-hit nation, on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m) owed by the town council. For more than a week there has been no lighting in public areas after power company Endesa cut services because of an outstanding bill of 280,000 euros (£240,000). Meanwhile some 500 council employees in the town have not yet been paid their August wages, it was reported. The town of 22,000 residents has been ordered to make an urgent payment of 400,000 euros (£346,000) to the Treasury in monthly instalments to cover its debts but the mayor has said the town will be forced to file for bankruptcy. Fernando Fernandez from the conservative Popular Party, who was elected mayor following elections in May, has blamed the debt on the previous socialist administration and asked for more time to meet payments. He claims the council workers wage bill alone amounts to 1 million euros a month and that the town's coffers are empty. It is a problem repeated in municipalities across Spain. In some towns, police officers have been ordered to walk to crime scenes in a bid to save costs on patrol cars. In others, austerity measures meant council services such as public swimming pools did not operate this year despite the soaring summer heat. On Tuesday rating agency Moody's warned that Spain's regions could fail to meet their deficit-cutting targets, a move considered necessary for the nation to meet the EU-agreed public deficit ceiling of 3 per cent of GDP by 2013.

Posted in: Coin,is,like many towns across the crisis-hit nation,near Malaga in southern Spain,on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m)