2 million interest repayments a day

“This means,” he explained “that we've got to find the equivalent of 2 million euros a day for the interest repayments, and this will without any shadow of a doubt have repercussions on the Balearic budget for next year.” Bauzá made it crystal clear yesterday that the Balearic government could only guarantee services for which it had the cash to pay. “We can't bank on more credit,” he warned.

He also said that in order to set a realistic budget, it is necessary to know what the Balearic Islands can expect in 2012 from state coffers.
Bauzá insisted that it is now essential to set up a Fiscal and Financial Policy Board to monitor the growth of the economy at a national level, suggesting that no-one appeared to believe current predictions. He added that at the same time, the regions need to know how the restoration of the Heritage tax - much vaunted by the current Socialist Central Government - is going to affect them.

The President summed up his assessment of the nature of the regional budget for 2012 by saying that it will be economically realistic, and based on available capital as opposed to on funds that it just doesn't have.

He also said that budget policy will promote economic growth whilst maintaining the government's commitment to the welfare state.

Creditors
The President claimed that the Balearics will keep within the deficit limit stipulated by Central Government of 1.3 percent for this year.
His intention, he said, is to pay local authority suppliers of goods and services the money that is owed to them by regional government.
The figure amounts to 1'104 million euros, payment of which Bauzá wants to secure through a loan paid to creditors in stages.
Bauzá furthered that there were no such things as “economic miracles” and that wiping the slate clean with suppliers isn't going to “happen overnight.” Bauzá said in his speech that it was the aim of his Partido Popular government to emerge from the economic crisis facing the Balearics - and the nation - as quickly as possible. He said that one of the measures he would adopt is to reduce the number of publicly-funded companies to make a saving of 115 million euros.

He also intends to reduce government subsidies which are not related to social services and to do away with independent union posts in government.
The President said that none of the actions that he either has taken - or is still to take - are being made out of “whim” but rather to measure up to the reality of what public money is available.