Re-Municipalizing Local Services in Spain: Not Only Ideology

Remunicipalization is a new buzzword. In Spain, local government have experienced direct and indirect pressures from the national and from some regional governments to adopt NPM inspired reforms. But the introduction of certain NPM inspired measures has lead to lack of accountability and corruption in too many cases. This situation would have lead, in turn, to a negative reaction and the search for appropriate remedies, especially in municipalities where left-wing parties won in the last elections. One of the remedial measures announced -although not always implemented- by most of these new governments has been remunicipalization. This paper will try, first, to make a few clarifications on the concept of remunicipalization and the theoretical and ideological basis of this tool. Later, we will analyze it from the costs of transaction theory to see when it is technically advisable to follow the strategy of re-internalization of services. Third, we will study in two cases why and how the processes of re-municipalizing of certain services were implemented. Finally, we will conclude with a summary of pros and cons to help local governments to make political decisions on this issue.