The Mayor of Palma, Jaime Martínez Llabrés, has presented a proposal to amend the Capital Status Law with the aim of guaranteeing a “fair and efficient” funding system for the city. The initiative sets a minimum contribution of 60 million euros per year, double the current amount.
The Mayor of Palma, Jaime Martínez Llabrés. Photo: Ajuntament de Palma.
The proposal will be submitted to the full council on 27 November. It will then be forwarded to the Parliament of the Balearic Islands to begin its legislative process. The mayor recalled that the law and the Statute allow the City Council to promote changes to its own capital status regime.
Twenty years of significant change
Martínez Llabrés highlighted that Palma has changed significantly over the past two decades. He noted that the population has grown by more than 27% and now exceeds 480,000 inhabitants. He also emphasised the impact of major infrastructures located in the city, such as the airport and the port. In 2024, 18 million tourists arrived on the island.
The mayor stated that between 2016 and 2023 Palma failed to receive more than 152 million euros. He asserted that this underfunding forced the City Council to make a budgetary effort exceeding 122% in order to cover the costs associated with capital status. He did, however, express gratitude for the “absolute commitment” of the regional and island governments over the past two financial years.
The reform proposes 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. In addition, the contribution must be updated according to official price variations and population growth.
Strengthening essential services
According to Martínez Llabrés, this increase will make it possible to strengthen essential services, improve infrastructure and respond to the new social and economic needs of the capital of the Balearic Islands. The proposal also introduces changes to other sections of the law related to municipal competences and functions.
The mayor stated that the initiative seeks to provide Palma with the tools required to face the future “with confidence”. He concluded that it reflects his commitment to the city and to its residents.
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