Reforms for a more competitive, sustainable and efficient economy

Automatic summary, not yet reviewed

1. The law defines sustainable economy as growth that combines economic, social and environmental development, and sets nine principles to guide public authorities, such as competitiveness, stable public finances and energy saving.
2. Public administrations must make their rules following good regulation principles: necessity, proportionality, legal certainty, transparency, accessibility, simplicity and effectiveness, and must assess their effects before and after approving them.
3. A common framework is created for regulatory bodies (energy, telecommunications and postal services): smaller councils, six-year terms with no re-election, strict conflict-of-interest rules and yearly appearances before the Congress of Deputies.
4. Banks must assess the solvency of loan applicants before granting credit and give clear information about financial products, to promote responsible lending and protect users.
5. The scope of positive administrative silence is expanded and local business licenses are restricted: they can only be required to protect public health or safety, the environment or historic and artistic heritage.
6. In telecommunications, broadband connection becomes part of the universal service with a minimum speed of 1 Mbit per second, and the general telecom operators' fee is cut to 1 per thousand of their gross income.
7. Energy targets are set for 2020: renewable energies must reach 20% of final energy consumption, with at least 10% in transport, and a public fund is created to buy carbon credits.
8. Sustainable Mobility Plans are promoted and, from January 1, 2012, state aid for urban public transport will be conditional on the beneficiary entity having one of these plans.

Who it affects

• Citizens and consumers: They will get more information about financial products and energy, and are guaranteed a broadband connection as part of the universal service.
• Businesses: Procedures, licenses and fees are simplified, and public procurement and internationalization are made easier.
• Banks and financial institutions: They must assess customer solvency before lending and publish information on their pay policies.
• Municipalities and local entities: Business licenses are restricted, and their share of state taxes can be withheld if they fail to submit budget settlement information.
• Public administrations: They must apply austerity plans, good regulation principles and energy saving targets.

Words worth knowing

Silencio positivo (positive administrative silence)

If the administration does not reply within the deadline, the request is deemed approved instead of denied.

Servicio universal (universal service)

The minimum set of telecommunications services everyone is entitled to receive at an affordable price.

Organismo regulador (regulatory body)

An independent public entity that oversees and regulates an economic sector, such as energy or telecommunications.

Créditos de carbono (carbon credits)

Certificates proving a reduction in greenhouse gas emissions, which can be bought and sold.

Plan de Movilidad Sostenible (Sustainable Mobility Plan)

A set of measures to encourage less polluting travel, such as public transport or cycling.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries