Financing Local Governments in Spain: New Solutions to Old Problems

Abstract

The aim of this paper is to contribute to the financial behavioural analysis of Spanish municipalities since the start of the ambitious process of political and economic decentralization linked to the restoration of democracy at the end of the 1970s. Specifically, the author presents financial figures, reviews the characteristics of the local finance system and the evolution of that system through what has been a series of unfinished reforms, and concludes by suggesting some possible corrections to the imperfections, or loose ends, detected.