Cabinet moves to eliminate 24 public corporations

The Cabinet announced on Friday the elimination of two dozen public corporations as part of the government’s ongoing effort to reduce spending at the central level.

Deputy Prime Minister Soraya Sáenz de Santamaría said that among the agencies that will be eliminated is the Corporation for Public Rents, an agency that helped Spaniards find rental properties.

The government will also begin liquidating 13 other state-owned corporations, withdraw its minority participation in 35 firms, and merge or eliminate nine foundations, including one created to organize celebrations to mark the 500th anniversary of the Discovery of America — which was in 1992.

“The government has to put things in order and it is doing so,” she said.

The announcement comes as the Bank of Spain released fourth-quarter figures for 2011 showing that the country’s public debt swelled to 68.5 percent of GDP.

The 24 state companies that will be eliminated make up 17 percent of the government’s public holdings. Nevertheless, the majority of them are run by regional government or local entities.

The Cabinet has also agreed to cut Aerospace Engineering and Services, Maritime Towing Lines (Remolmar), the Corporation for Lottery Sales and Betting (Sevalae), the North Cuenca Water Company (Acuanorte) and South Cuenca Water Company (Acuasur).