The Local Authorities (Rationalisation and Sustainability) Act (27/2013) and its Impact on Local Welfare Systems
Keywords:
Local reform, social State, local welfare systema, public services, governance, local AdministrationAbstract
Since the democratic local authorities were first created in April 1979, local government
has provided a growing number of public services within the framework of the Local Government
Act and regional legislation. This activity by local authorities in their role as welfare actors has
made a notable contribution towards realising the objectives of the social state. After a controversial
process, in late December 2013 the Spanish parliament enacted the Local Government
(Rationalisation and Sustainability) Act (27/2013) to address the objective of adapting the local
subsystem to the demands imposed by the principles of budgetary stability and financial
sustainability. This paper describes the economic and financial situation of local authorities, which
show signs of improved management in terms of the deficit and public debt, when compared with
central government and regional administrations. Also addressed is the restructuring of competences
established by the Act, noting how local authorities’ powers have been slashed, with a severe
reduction in their remits and weakening of their institutional position, thereby seriously
compromising the future of welfare systems, especially if we consider the critical economic and
financial situation in which the regional governments now find themselves.
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Copyright (c) 2016 José Luis Martínez-Alonso Camps
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