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JOHN CARLOS I
KING OF SPAIN
To all who present it and understand it.
Sabed: That the General Courts have approved and I come to sanction the following organic law.
EXPLANATORY STATEMENT
Budget stability and financial sustainability are key pieces for confidence in the economy, and it is essential to drive growth and job creation. Therefore, in order to give the budgetary stability policy the utmost credibility, in September 2011, Article 135 of the Spanish Constitution was reformed. This reform introduced a tax rule that limits the public deficit of a structural nature and limits public debt to the reference value of the Treaty on the Functioning of the European Union.
To give full compliance to the constitutional mandate, the Organic Law 2/2012, of 27 April, of budgetary stability and financial sustainability was approved with three fundamental objectives: to guarantee sustainability The European Union's financial support for all public administrations; strengthening confidence in the stability of the Spanish economy; and strengthening Spain's commitment to the European Union in the field of budgetary stability.
The approval of that Organic Law has been a milestone in incorporating financial sustainability as a guiding principle for the economic and financial performance of all public administrations, both in the State and in the Autonomous Communities, Local Corporations and Social Security.
In this regard, the Government has implemented several measures to support the financing of the Autonomous Communities and Local Entities, such as the cash advances of the resources of the Financing System, the so-called The ICO-Autonomous Communities line or the Supplier Payment Plan, always complemented with due fiscal and financial conditionality. These mechanisms are helping to alleviate the tight restrictions on access to credit that are being suffered by public administrations and, at the same time, make it easier for them to meet their financing needs in exchange for strengthening their commitments to fiscal consolidation.
The implementation of these measures requires some changes in the Organic Law 2/2012, of 27 April, of budgetary stability and financial sustainability, as it has affected the distribution of public debt between Administrations, which requires clarification on the way in which it computes this new debt to the effects of the limits laid down in the Organic Law on Budgetary Stability and Financial Sustainability.
In addition, given the persistence of the financial situation which prompted the introduction of these additional financing measures, it is necessary to give greater flexibility to the time limit laid down for the implementation of these measures. " To this end, a modification of the additional provision of the Organic Law on Budgetary Stability and Financial Sustainability is included, in which the Government's Delegation for Economic Affairs is enabled to extend these deadlines.
Similarly, this Organic Law introduces some modifications aimed at intensifying the fiscal and financial discipline of the territorial administrations, expanding their reporting obligations, especially on its cash position and the guarantees to meet its debt maturities are strengthened.
This Act consists of a single article amending the Organic Law 2/2012 of 27 April, of budgetary stability and financial sustainability, a single additional provision and two final provisions.
In the single article, the additional provision of the Organic Law on Budgetary Stability and Financial Sustainability is amended in order to be able to extend, through the Agreement of the Government Delegated Commission for Economic issues, time limits for access to extraordinary liquidity mechanisms.
In the same article, it is anticipated that the Autonomous Communities participating in the extraordinary liquidity mechanisms should submit to the Ministry of Finance and Public Administration information with a monthly frequency, rather than quarterly as previously stated.
Likewise, the autonomous administrations participating in new liquidity support mechanisms that can be implemented, will have to comply with additional reporting obligations to the Ministry of Finance and General government on the implementation of its adjustment plans. This new information to be submitted is included: updated information on the treasury plan, adequacy of the adjustment plan to reality, assessment of the risk of non-compliance with the committed objectives, analysis of the deviations, proposals for amendments to the adjustment plan. The Ministry of Finance and Public Administrations may request all relevant information to monitor the adjustment plans.
A new provision is added to the Organic Law on Budgetary Stability and Financial Sustainability regarding compliance with the payment of financial debt maturities. It is established that all public administrations will have to have treasury plans that show their capacity to pay for the payment of financial debt maturities. This further information is complemented by the strengthening of the guarantees for the payment of debt maturities. To this end, a situation of risk of non-compliance with such payments shall be deemed to be seriously concerned with the general interest, proceeding in accordance with the provisions of Article 26 of the Organic Law 2/2012 of 27 April 2012. Budget and Financial Sustainability.
Moreover, in line with the possibility of extending the extraordinary liquidity mechanisms to post-2012 exercises, the fourth transitional provision of the Organic Law 2/2012 of 27 April 2012 is amended. Budgetary Stability and Financial Sustainability.
The single additional provision specifies how the criteria for the distribution of the public debt volume of public administrations should be applied for the purposes of the Organic Law 2/2012 of 27 April 2012. Budget and Financial Sustainability.
Finally, the final provisions provide for the government and the Minister of Finance and Public Administrations, in the field of their powers, to issue the provisions and take the necessary measures to the development and implementation of this Law, as well as the immediate entry into force of the reform.
Single item. Amendment of the Organic Law 2/2012 of 27 April, of budgetary stability and financial sustainability.
Organic Law 2/2012, of 27 April, of budgetary stability and financial sustainability is amended as follows:
One. The first provision is worded as follows:
" Additional disposition first. Additional funding mechanisms for the Autonomous Communities and Local Corporations.
1. The Autonomous Communities and Local Corporations that request the State access to extraordinary liquidity support measures or have requested it during 2012, will be obliged to agree with the Ministry of Finance and Public Administrations. an adjustment plan to ensure that the objectives of budgetary stability and public debt are met. According to the Government's Delegate Committee for Economic Affairs, these deadlines may be extended, taking into account the difficulties of access to the financial markets of the Autonomous Communities and Local or other Corporations. socio-economic circumstances which determine the need to extend the above measures in an extraordinary manner.
2. Access to these mechanisms shall be preceded by the acceptance by the Autonomous Community or the Local Corporation of particular conditions for the monitoring and reporting of information and other conditions to be determined in the arrangements or arrangements which provide for the implementation of the mechanisms and for the adoption of extraordinary adjustment measures, where appropriate, in order to achieve the objectives of budgetary stability, public debt limits and payment obligations to suppliers included in Law 3/2004 of 29 December, for which measures of struggle are established against late payment in commercial transactions.
3. The adjustment plan shall be public and shall include a precise timetable for the approval, implementation and monitoring of the agreed measures. Compliance with the established timetable shall determine the disbursement by tranches of the financial support established.
4. During the duration of the adjustment plan, the responsible administration shall forward to the Ministry of Finance and General Administration for general knowledge, information on a quarterly basis, on the following extremes:
a) Public records received and transactions or credit lines contracted by identifying the entity, total available credit and the credit provided.
b) Commercial debt contracted by its seniority and maturity. Information on contracts entered into with credit institutions to facilitate payment to suppliers shall also be included.
c) Derivative operations.
d) Any other contingent liabilities.
5. Failure to refer, unfavourable assessment or failure to comply with the adjustment plan by an Autonomous Community or Local Corporation shall result in the enforcement of the coercive measures of Articles 25 and 26 provided for in the non-compliance with the Financial Economic Plan.
6. Local corporations with annual periodicity shall submit to the Ministry of Finance and Public Administrations a report of the financial controller on the implementation of the adjustment plans.
In the case of the Local Entities included in the subjective scope defined in Articles 111 and 135 of the recast of the Local Government Law Regulatory Law, the previous report should be presented on a regular basis. quarterly.
The Autonomous Communities shall send the information provided for in paragraph 4 on a monthly basis, through their general intervention or equivalent unit, and shall additionally submit to the Ministry of Finance and General government, the updated information on the implementation of its adjustment plan relating to at least the following elements:
a) Monthly budget execution of expenditure and revenue chapters.
b) Adequation to the reality of the plan of adjustment and assessment of the measures in progress.
(c) Assessment of short and medium-term risks in relation to the fulfilment of the objectives pursued with the implementation of the adjustment plan. In particular, the liquidity forecasts and borrowing requirements will be analysed.
d) Analysis of deviations that occurred in the execution of the adjustment plan.
(e) Recommendations, where appropriate, to amend the adjustment plan with the aim of meeting the objectives of budgetary stability and financial sustainability.
f) Updated information on your treasury plan.
The Ministry of Finance and Public Administrations will be competent to follow up the adjustment plans, for which it will be able to request all information that is relevant, and will inform the outcome of the valuation of the Ministry of Economy and Competitiveness. In order to ensure the reimbursement of the amounts resulting from the concerted borrowing operations, depending on the risk arising from the monitoring reports of the adjustment plans or the level of compliance with the The conditions referred to in paragraph 2 may be subject to control by the General Intervention of the State Administration, with the content and extent to which it is determined. In order to carry out the monitoring activities, the General Intervention of the State Administration will be able to obtain the collaboration of other public bodies and, in the case of control actions in Autonomous Communities, to conclude agreements with their General Interventions.
In the case of control actions in Local Corporations, the General Intervention of the State Administration, will be able to count on the collaboration of private audit firms, which will have to conform to the norms and instructions to determine. The funding needed for these actions will be carried out from the same funds used to provide the extraordinary liquidity support measures. "
Two. A new fourth additional provision is added with the following content:
" Additional provision fourth. Compliance with the payment of financial debt maturities.
1. The public authorities must have cash plans that show their capacity to pay for the payment of financial debt maturities with a special forecast of interest and capital payments on the public debt.
2. The risk of non-compliance with the payment of financial debt maturities, which the government has appreciated on a proposal from the Minister of Finance and Public Administrations, is considered to be of serious concern to the general interest. compliance with the provisions of Article 26. '
Three. The fourth transitional provision is worded as follows:
" Transitional provision fourth. Exclusion from the scope of Article 8 (2) of the Act.
Additional funding mechanisms that have been enabled or are enabled by the State in accordance with the provisions of the first provision for the purpose of the Autonomous Communities and Local Corporations (a) to meet the outstanding obligations of payment to their suppliers, to finance their debt maturities or to provide the Autonomous Communities with liquidity, they shall be excluded from the scope of Article 8 (2) of this Regulation. Law. "
Single additional disposition. Implementation of the principle of financial sustainability for the Autonomous Communities and Local Corporations that adhere to the additional financing mechanisms of the first provision of the Organic Law 2/2012, of 27 April, Budgetary Stability and Financial Sustainability.
For the purposes of compliance with the debt limits referred to in the second paragraph of Article 13.1 of the Organic Law 2/2012 of 27 April, budgetary stability and financial sustainability shall be the increase in the volume of debt that may occur in the central government, in accordance with the Protocol on Excessive Deficit Procedure, as a result of the borrowing operations it has undertaken or has carried out State in order to develop additional funding mechanisms, it will be computed, respectively, in the Autonomous Communities and Local Corporations in the amount equivalent to the amounts received by those Administrations from those mechanisms.
Final disposition first. Regulatory enablement.
The Government and the Minister of Finance and Public Administrations, within the scope of their powers, are empowered to dictate the provisions and adopt the necessary measures for the development and implementation of the provisions of the This Act.
Final disposition second. Entry into force.
This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State".
The adjustment plans that have been approved prior to the entry into force of this Law during the financial year 2012 will also apply to them as provided for in this Law.
Therefore,
I command all Spaniards, individuals and authorities, to keep and keep this organic law.
Madrid, 28 September 2012.
JOHN CARLOS R.
The President of the Government,
MARIANO RAJOY BREY
