Spanish unpaid bills continue to weigh heavily on the country. The northern region of Navarra, which is known for its wines might be bankrupt by the end of the year.
Basic services and workers’ salaries might not be paid, as the coffers are quite empty.
The new regional government has “discovered” a deficit of 600 million euros. This might be small, but it reflects a much bigger problem, of 50 billion euros of unpaid bills in various regional and local authorities.
While the central government continues acting and is also quite successful in recent bond auctions, the local governments continue to be a burden on the euro-zone’s fourth largest economy.
Spain’s El Economista reports that the region compares itself to Greece in order to get some attention.
As Greece nears a default, it is important to remember that the real effort of EU leaders is to stabilize Spain and Italy, and this task isn’t that easy.
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