Major Cities-Public Finance

Major Cities Public Finance Project

This project intends to create a tool to aid the participating cities in jointly tackling the challenges they face in financing their activities. It seeks to resolve issues relating to the formal or informal exercise of a certain territory's capital status and the reception of a large number of floating population (due to the mobility of citizens in general, from tourism, and from the globalisation of businesses, etc.). Moreover, the project aims to help Major Cities find solutions to those financial needs which have arisen as a consequence of the current social and economic conjuncture.


The current problems with financing Major Cities (which derive not only from the specialities of their territorial jurisdiction - capital status and centrality -, but also from the new global socio-economic climate), are often neither contemplated nor addressed by the legal regulations of the established financial and tax systems. These systems can become archaic and rigid, lacking the flexibility to adapt to their specific needs. Even the existence of special financial regimes, applicable to some of these Major Cities (for example the special laws for Madrid and Barcelona which were passed by the Spanish state in 2006), have proved to be insufficient in responding to their current needs. For this reason, the Major Cities need to come together to seek innovative financial and/or tax solutions that will allow them to adapt their respective Local Finances to the new social and economic landscape.

This project tries to find solutions to the problems of financing the Major Cities, not only by formulating proposals in the field of taxation, but also by analysing new ways of public funding that respond to the peculiarities of each city, and which, at the same time, are more fair and adaptable to the changing municipal environment. In pursuit of these goals, this study aims to take into account the current economic, legal and social context of the problem; in particular, the conditioning factors of public funding derived from the economic crisis (i.e. a reduction in the collection of tax incomes; the increase in public deficit and debt; and at the same time, the need to increase public investment). We believe this approach will lead to the formulation of new methods and techniques for funding the collective needs.

© Fundació Carles Pi i Sunyer