RTN NORTH EDITION 649

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23 MAR-29 MAR 2012

Town hall faces ruin

Warning: buyers beware!

The British Embassy in Madrid warned people looking to invest in the Spanish property market should avoid “cutting corners” p4

Go Ahead: Take the Plunge

by jack troughton

Many homeowners are taking the plunge into major renovations that are not only going to enhance their lifestyle but also boost the value of their investment p33

RTN exclusive offer FITNESS CORPORE in Finestrat are giving RTN Readers the chance to try the gym’s facilities completely FREE of charge! So come on, get in shape for summer with FITNESS CORPORE p48

Kiss me quick!

Patron saint of party

Hundreds of people took advantage of the sunshine to celebrate St Patrick’s weekend in style and have a ‘craicing’ good time. Read the full story on page 5.

GOVERMENT ORDERS for town halls to pay off debts owed to suppliers and providers could mean financial ruin and bankruptcy without urgent cuts in spending, it was claimed this week. Prime Minister Mariano Rajoy has issued a decree that local authorities must settle outstanding bills – and has offered central bank loans to do so. But with many councils described as being “in a hell of a state” financially, negotiations are already in hand with Madrid in a bid to keep heads above water. This week Calpe Town Hall was looking to slash spending to lower costs across all departments, save health and social services, by between 30% and 40%. It must also present a list of debts to the government to borrow money over 10 years – two repaying interest only and eight further years also repaying the capital. But it is feared without cutbacks, Calpe’s near 30 million euro debt to suppliers would be unaffordable and a government loan for the full amount would take the council above the legal limit for borrowing. At a press conference, Mayor Cesar Sanchez said the town and its people were paying for the “sins of the past” and said to address the “legacy” certain loss making services would close and others be run by private companies. The property tax IBI would also rise by a maximum 10% again next year as an “exceptional and temporary” measure before being reduced in 2014. He said present spending was “untenable” and was the responsibility of “disastrous” management of previous administrations and good housekeeping was needed. However, it was also hoped that nine million euros claimed by rubbish company Colsur would be taken out of the equation - the sum is disputed and part of a corruption case alleging invoices to the town hall were illegally and “grossly” inflated. Continued on page 3


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