Austerity romance: two towns merge in Spain seeking savings breakthrough

MADRID | Cesuras and Oza agreed this week the first merger between towns in Spain. The villages will become one local authority in a decision that was pushed by the need of public spending rationalisation, and that is likely to trigger a municipal restructuring in the region of Galicia.

In fact, the president of Galicia’s province of A Coruña, Diego Calvo, admitted there are at least nine other towns currently in negotiations. Calvo said Galicia should open a path to follow everywhere else in Spain, setting comparisons to the British model in which a map of 2,000 local authorities was simplified down to about 500. Calvo also hinted at the possibility of forcing those villages whose budgets are burdened by unsustainable deficits to merge.

A Coruña is a province with 94 municipalities and Calvo referred to the process of municipal mergers as ‘irreversible’.

Oza-Cesuras, as the new municipality will be registered, appears to have begun its new chapter in history with a stroke of luck. Begano, the distributor of Coca-Cola in the northwest, will build a large plant logistics projects in the area. Now, the prize will be shared by Oza-Cesuras’ 5,000 population, as they will do with the town hall, flag, political parties, services and budgets.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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