Harsh times are ahead with reduced services, manpower and increased taxes, but under Spanish law an ayuntamiento cannot go bust or be embargoed.

Local Town Halls are on the edge of financial collapse in Spain, and many are now planning sackings and increased taxes to survive.
Municipal debt across the country has reached some 35 billion €, with Madrid City Hall representing 7 billion of that alone. The Madrid debt has doubled in the last five years. El País names the La Rioja town of Ochánduri as the most indebted in Spain where it owes 9,810 € per person in the municipality.More than 30 municipalities owe more than 3,000 € per head.Many have been hard hit by the collapse in the building market, as 30% of their income on average used to come from construction.Harsh times are ahead with reduced services, manpower and increased taxes, but under Spanish law an ayuntamiento cannot go bust or be embargoed.