Palma’s Mayor Proposes Doubling Annual Funding to 60 Million Euros
The Mayor of Palma, Jaime Martínez Llabrés, has presented a proposal to amend the Capital Status Law, aiming to establish a “fair and efficient” funding system for the city. The initiative sets a minimum contribution of 60 million euros per year, which is double the current amount. This move is expected to have a significant impact on the city’s development and services.
The Mayor of Palma, Jaime Martínez Llabrés. Photo: Ajuntament de Palma.
The proposal will be submitted to the full council on 27 November and then forwarded to the Parliament of the Balearic Islands to begin its legislative process. According to Martínez Llabrés, the law and the Statute allow the City Council to promote changes to its own capital status regime, making this proposal a significant step towards securing the city’s future.
Twenty Years of Significant Change in Palma
Over the past two decades, Palma has undergone significant transformations, with its population growing by more than 27% to exceed 480,000 inhabitants. The city is also home to major infrastructures such as the airport and the port, which have a substantial impact on the local economy. In 2024, 18 million tourists arrived on the island, further highlighting the need for adequate funding to support the city’s growth.
Between 2016 and 2023, Palma failed to receive more than 152 million euros, resulting in a significant budgetary effort exceeding 122% to cover the costs associated with capital status. Despite this, the mayor expressed gratitude for the “absolute commitment” of the regional and island governments over the past two financial years.
Strengthening Essential Services and Infrastructure
The proposed reform suggests that the Balearic Government’s budget should include a minimum of 50 million euros each year, with a further 10 million euros from the Consell de Mallorca. The contribution must also be updated according to official price variations and population growth. This increase will enable the city to strengthen essential services, improve infrastructure, and respond to new social and economic needs.
According to Martínez Llabrés, this initiative will provide Palma with the necessary tools to face the future “with confidence”. The proposal reflects his commitment to the city and its residents, ensuring that Palma is well-equipped to handle the challenges and opportunities that lie ahead. For more information, visit Here
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