La deuda de Zaragoza es menos del 75% de los ingresos actuales tras casi 40 años

The debt of the city of Zaragoza is, after almost 40 years, less than 75 percent of current income, after depreciating 32 million last year and remaining at 571 million euros, including the 112 million from the tram depreciation plan that the forces of the Bank of Spain must take into account.

This debt percentage, which, with the certification expenses of the Bank of Spain, by the end of this week, would be 71.58 percent, I assume that the Local Council of Zaragoza is leaving the financial guardianship that in 2013 forced them to request authorization from the regional government and to allow access to cheaper financing.

Zaragoza’s mayor, Natalia Chueca, announced this data, which she described as «very good news,» because it reveals «efficient management.» In 1986, the local council «did not have clean accounts» due to the high debt ratio, which was 121 percent in 2014; In 2019, it decreased to 116 percent and has since progressively decreased to 71.58 percent, which she estimated will be definitive this year.

In this way, the debt was reduced by 31 percent from June 2019, when the PP returned to govern the city, from 830 million in debt to 571 million, representing a reduction of 259 million in six years.

In statements to Mass Media, together with the Municipal Minister of Finance and European Projects, Blanca Solans, she compared this figure to highlight the high budget execution because with the highest budget, it was possible to have a smaller debt and carry out the largest investment.

«I believe this news is important because it allows us to contrast how good an administration is and how it can have a record budget in terms of execution and investments, as was the case in 2024, with over 100 million euros in transforming the city of Zaragoza into new streets, parks, and public facilities,» detailed the mayor.

The debt exemption per inhabitant is 48 euros in the last year and, compared to June 2019, it already amounts to 376 euros for each person living in Zaragoza. The municipal government combines the commitment to sanitation of the municipal accounts with a strengthening of investments to undertake projects in the city that were «stalled» for several years and with a record team for social policies aimed at protecting the vulnerable population.

In recent years, the Local Council of Zaragoza has achieved historical relationships in three concepts of great relevance to the financial health of the city: the largest municipal budget Zaragoza has ever had, the smallest fiscal burden for citizens, and the lowest debt percentage since 1986, she emphasized.

At the same time, as the progressive reduction of the live debt is taken, the treasury and European funds area is advancing in its financial restructuring strategy to reduce interest expenses, which is a relief for the Municipal Council and its investment capacity.

Zaragoza has the lowest taxes of all cities in Spain «and is the most competitive city from a fiscal point of view, while public services and social services improve,» and «while the financial debt of the Municipal Council is low,» Chueca summarized.

The recurrent use of «excessive» debt in Zaragoza and the payment of interest and high financial expenses it generated weighed on the Municipal Forms, Chueca lamented that, since 2012.

To this is added what was paid in convictions to contracts because the services provided the consequences of this delay and estimated at 104 million euros were not paid on time, plus the interest on interests that amounted to 39.5 million euros.

The city government management assumed that, starting in 2023, it is not aimed at the economic-legal boost fund to pay convictions, and therefore, the Municipal Council can borrow at a more competitive rate.

In addition, the debts are not used to pay suppliers or court sentences but to the investment company and also on more competitive terms.

As an example, she said that last year, due to a refinancing operation from the previous year, an economy of 9.5 million euros was obtained, a figure similar to the cost of Culo Street and San Miguel Street.

This economy is largely due to the four refinancing operations signed in the last year and a half, to cancel the loans used in 2005-2008 under «very onerous» conditions for the Municipal Council and to replace them with others at much more favorable rates. These loans have caused costs to exceed by more than 25 million euros in the last two decades.

Chueca added that, from the city government, work is being done that carries the leadership of the Popular Party, which shows that «it is possible» to have good management of public money with the highest taxpayers, and the management of my government was the exposure.

«While other administrations borrow, raise taxes, and increase debts, as is the case of the Spanish Government, in the city of Zaragoza, we reduce taxes and debts, while increasing the city’s investment to a record figure and improving and increasing public services and social services,» she compared.

On the other hand, Blanca Solans has a meeting at the Directorate-General for Defense Industry of the European Commission next week to address the Defense Hub Project Zaragoza.

This project, which originates in the local council and exceeds municipal powers by involving the regional and central governments, is an opportunity for the city in the face of imminent geopolitical changes.

FUENTE