June 2014

The fiscal drainage of Catalonia

Núria Bosch's picture

Catalonia suffers from a significant fiscal drainage towards Spain in the form of a large fiscal deficit. This is the difference between the Central Government’s public sector spending in Catalonia and the resources extracted from this Autonomous Community, mainly through taxation, by the Central Government.

Fiscal deficit data, all calculated using the same methodology, is available from 1986 until 2011. The average for 1986-2011 is 8% of GDP with a standard deviation around this average of only 0.9. Therefore, one can speak of a structural fiscal deficit that affects the Catalan economy recurrently.

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Catalonia towards self-determination in Europe

Marc Sanjaume's picture

The results of the European elections in Catalonia have several diverse implications for Catalan politics at a key moment for the country. First of all, the left-wing independence ERC's historical victory (23.7%), ahead of the governing centre-right CiU (21.9%), consolidates the referendum on Catalonia's political future scheduled for 9th of November next, which does not have the Spanish Government's support at this moment. Parties in favour of Catalonia's right to self-determination, the ERC (23.7%), CiU (21.9%), Green Socialists ICV (10.3%) and the alternative left party Podemos (4.7%), has now reached 61% of the vote, with a majority of left-wing parties within this block. Moreover, the ERC's victory has been achieved by overtaking the CiU, the governing party in Catalonia, which can now ask the left-wing independence and republic supporters for a further engagement.

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