Spain's proposal to shrink the State by 90%
An analysis of the proposal to shrink Spain's State by 90%: drastic cuts to administration, civil servants and parliament. What would it mean for the country?
English · Original discussion in Spanish · Published
The plan to shrink the State by 90%: a chainsaw against bureaucracy
The proposal is as radical as it is precise: cut the number of MPs from 350 to 35, close every ministry except five, abolish the autonomous communities, privatise all state-owned companies and replace civil servants with private contractor employees. The stated goal is to eliminate the "great business of public money". But the analysis of the figures reveals contradictions: the same plan that slashes administrative spending keeps pensions and an education voucher that, according to its supporters, would absorb half of the current budget. Where does the saving come from?
The chainsaw menu
Parliamentary reduction: from 350 to 35 MPs, with salaries exceeding 5,000 euros a month. Elimination of all regional ministries and provincial councils. Funding of the autonomous communities per inhabitant, with fiscal competition between them. Outsourcing of public services through contracts with private companies, removing the civil servant status for non-essential services. The saving on MPs' salaries would be around 2 million euros a month, but the political impact of eliminating minority representation is immense.
The risks of ultra-liberalism
The most common criticism points out that eliminating the State does not eliminate the need for services, but merely transfers them to the private sector, where monopolies can form. Take the example of education vouchers: if the State hands a voucher to every family, private schools will compete to attract them, but without regulation, costs can skyrocket. Moreover, the experience of countries with mixed systems shows that outsourcing does not always reduce spending or improve quality. Those who defend the extreme reduction argue that corruption is proportional to the size of the State, but the data indicate that even small States can have high levels of regulatory capture.
The elephant in the room: public spending
Supporters of the 90% reduction argue that pension spending can be converted into an individual capitalisation system, costing the State zero euros. However, they keep an education voucher and disability pensions, which according to calculations would account for 50% of the current spending of Spain's administrations. The question is whether the savings in bureaucracy and duplication offset the cost of the new control systems and the transition to a private model. The discussion makes one thing clear: without a detailed breakdown of the figures, the proposal remains an ideological exercise.
The debate leaves more questions than answers. Can a minimal State guarantee basic services without generating extreme inequality? Is outsourcing a real solution or a transfer of profits to the private sector? What is clear is that the discussion is not ideological: it is mathematical, and the numbers do not quite add up.
Related discussions in the forum
The proposal is as radical as it is precise: cut the number of MPs from 350 to 35, close every ministry except five, abolish the autonomous communities, privatise all state-owned companies and replace civil servants with private contractor employees. The stated goal is to eliminate the "great business of public money". But the analysis of the figures reveals contradictions: the same plan that slashes administrative spending keeps pensions and an education voucher that, according to its supporters, would absorb half of the current budget. Where does the saving come from?
The chainsaw menu
Parliamentary reduction: from 350 to 35 MPs, with salaries exceeding 5,000 euros a month. Elimination of all regional ministries and provincial councils. Funding of the autonomous communities per inhabitant, with fiscal competition between them. Outsourcing of public services through contracts with private companies, removing the civil servant status for non-essential services. The saving on MPs' salaries would be around 2 million euros a month, but the political impact of eliminating minority representation is immense.
The risks of ultra-liberalism
The most common criticism points out that eliminating the State does not eliminate the need for services, but merely transfers them to the private sector, where monopolies can form. Take the example of education vouchers: if the State hands a voucher to every family, private schools will compete to attract them, but without regulation, costs can skyrocket. Moreover, the experience of countries with mixed systems shows that outsourcing does not always reduce spending or improve quality. Those who defend the extreme reduction argue that corruption is proportional to the size of the State, but the data indicate that even small States can have high levels of regulatory capture.
The elephant in the room: public spending
Supporters of the 90% reduction argue that pension spending can be converted into an individual capitalisation system, costing the State zero euros. However, they keep an education voucher and disability pensions, which according to calculations would account for 50% of the current spending of Spain's administrations. The question is whether the savings in bureaucracy and duplication offset the cost of the new control systems and the transition to a private model. The discussion makes one thing clear: without a detailed breakdown of the figures, the proposal remains an ideological exercise.
The debate leaves more questions than answers. Can a minimal State guarantee basic services without generating extreme inequality? Is outsourcing a real solution or a transfer of profits to the private sector? What is clear is that the discussion is not ideological: it is mathematical, and the numbers do not quite add up.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (33 replies).
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