Highlighting the small town of Moia, she tells us that
In Catalonia ten further councils are thought to be on the verge of financial collapse.
Indeed, the Federation for Municipalities and Provinces estimates that 40 per cent of Spain's local governments are in serious economic trouble.
- Moia, population 5,800, owes €25m - nearly four times its annual budget. Some local businesses have been owed money since 2005.
- Moratalla's two garages are owed €120,000 by the local authority and refuse to fill up municipal cars.
- In Barbate, 180 tons of rubbish are accumulating on the streets after the council's workers went on strike, having not been paid since June.
The problem is that Spain in many ways is still a Third World country – we joke that Africa begins when you cross the Pyrenees. We should have been living within our means, renting houses, driving old cars, developing slowly and securely. But we went crazy.Obviously central government is in no position to bail out local government across the country.
Maybe it won't be the international bond markets that bring Spain down. Maybe local governments' debts will bring Spain down from within.