The biennial event focuses on the fiscal problems facing city councils in time of crisis

On 14 and 15 June, the Barcelona Economics Institute (IEB) held its sixth biennial Symposium on Fiscal Federalism, at the Caixa de Catalunya Auditorium in La Pedrera. On this occasion, the meeting centred on the financing of Spanish local governments, and analysed the financial problems facing city councils in the current economic climate. 

During the years of economic growth, local governments assumed responsibilities for areas which, in theory, did not come under their jurisdiction. In view of the lack of definition in the distribution of competences, the increase in public resources allowed city councils to finance these responsibilities. With the onset of the crisis and the dramatic fall in government revenues from internal taxes and state transfers, the role of the municipalities must inevitably change. The restrictions on debt, deriving from the public reductions from the State, constitute another example of the need for change in the role of municipalities. 

Viable alternatives for improving the economic management of local financing were analysed in the symposium, for example giving more autonomy to city councils in managing their tax contributions or encouraging cooperation between municipalities with regard to the joint provision of certain public services. 

Among the guest speakers were experts in local financing such as Richard Bird, professor at the University of Toronto and consultant for the World Bank; Enid Slack, also professor at the University of Toronto; Jorgen Lotz, consultant of the Council of Europe; and Guy Gilbert, of the École Normale Supérieure ENA-Cachan, in France. 

Besides these experts, city council officials responsible for tax management in Spain participated in the round table on the finances of big cities: Jordi William Carnes, from Barcelona; Juan Bravo, from Madrid; Francisco Catalá, from Zaragoza; and Juan Manuel Ruiz, from Málaga. 

For more information, please visit our website: SYMPOSIUM WEBSITE

You can also watch the report filmed during the Symposium: REPORT