'Administrations will no longer be financed by owing their suppliers' says minister

Minister Cristóbal Montoro
(Photo: abc.es)

SEVILLE At a press conference in Seville earlier this month, the Treasury and Public Administrations Minister, Cristóbal Montoro, announced that the tax authorities will soon be provided with new measures whereby suppliers to public administrations such as regional or local authorities, will be able to turn directly to his Ministry for payment. For this purpose, the Treasury will retain money from these administrations when bills become overdue by more than what is established in the law on debts. Until now, the only reason money could be kept back from the Participación en los Ingresos del Estado (PIE, or State Income Participation) system was when taxes or social security payments were owed. (A more detailed article on this subject will soon be available on SpainInformer.com)