Government studying “German system” to finance road works

The Balearic government is seeking different ways of financing new roads and is studying, among other proposals, carrying out projects now and paying for them within 15 to 20 years. Finance minister Joan Mesquida has asked the government to consider using what he described as “the German system“ under which the government could invest in roads without having to pay. The big obstacle is that it cannot increase its burden of debt and so will have to find an alternative means of finance. This system has never been used in Spain before, but it could be used in the Balearics, Mesquida claimed. However, he also said that the government's first option to raise money for roads is to revise the agreement signed with the central ministry of works, something which the government in Madrid opposes. But, said Mesquida, “the government is not going to remain with its arms folded. What the central government cannot do is block certain investments in the Balearics, because it has the money in a drawer, ready to finance them.”