We have no money is the usual statement from the local authorities at the moment. They all blame Madrid for the lack of cash but of course one of the biggest sources of revenue for the local authorities is building licences, and as there is little building then no money from taxes. It is a well-known fact that the Balearics pay Madrid far more than they get in return in the form of taxes. Successive Balearic governments have been battling for some time to secure a better funding deal from the central administration in Madrid, but nothing. This is one of the reasons why the local government is planning to introduce the controversial tourist tax because of the severe lack of funds. Now, it must be remembered that the Balearics are one of the richest regions in Spain; therefore money which is raised here is spent on other areas with a lower standard of living. But the local government says that they want more. Madrid is not being fair, say the Balearics, and to a certain extent they are right. The next Spanish government needs to look at the issue of funding for the Spanish regions. One of the reasons why Catalonia wants to break away from Spain is because of the issue of funding. In fact, Catalonia is in the same boat as the Balearics. The new Balearic government will be pushing for a better deal with Madrid, but I suspect that they will wait until after the general elections in December before a major onslaught is launched.
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