Recession forces Balearic government to consider public company mergers

PALMA
FACED with recession-driven budget restrictions next year, the Balearic government is to consider merging public companies, said Carles Manera, regional Minister for Economy and Tax yesterday.

“In the coming months, we're going to see public companies combining their resources,” said Manera who wanted to make it clear that no government administration workers would be losing their jobs as a result.

The Minister was presenting next year's budgets to the leader of the Balearic Parliament, Maria Antonia Munar yesterday. He explained that legislation governing the 2010 regional budgets called, wherever possible, for “rationalisation” of administration and pooling of finances “in the interests of the public sector.” Manera said that companies which will be targeted for amalgamation will be those which carry out similar functions, or “synergies” as the Minister called them.