Murcian municipality is "nearly broke"

The town of Moratalia in Murcia is nearly broke, according to its mayor. Since April, 120 public employees have not been paid and Moratalia's debt is listed at 28 million euros, Mayor Antonio García said on Wednesday.

"This is awful," he added.

The mountainous town of 8,500 inhabitants owes at least 9 million euros to local suppliers, and has a 600,000 euro loan debt with the Industry Ministry.

García, a Popular Party (PP) politician, was elected on May 22 after four years of Socialist government. "The halt in construction, the crisis and the lack of revenue has brought us to this," he said in a telephone interview.

He added that immediate measures must be taken, such as raising taxes, which goes against a directive from the PP. "I don't care what my party thinks. We need to act now and raise taxes. It is a brave decision."