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Catalonia had a €25 billion Social Security surplus between 1995 and 2010

An official study issued by the Catalan Finance Ministry shows that Catalan citizens have given €24.77 billion more to the Spanish pension and unemployment funds than they have received back from it. The study takes into account the contributions of Catalan citizens and companies between 1995 and 2010. Without the Catalan contributions, the Spanish Social Security system would have had a €86.33 billion deficit in the same period. The Catalan contribution to the Social Security system was negative in 1995-1996 and 2009-2010, while between 1997 and 2008 it showed a budget surplus. Without Catalonia, Spain’s Social Security would have only had a budget surplus between 2003 and 2007.

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11 October 2012 11:42 PM

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ACN

Barcelona (ACN).- An official study issued by the Catalan Finance Ministry shows that between 1995 and 2010, Catalan citizens have given \u20AC24.77 billion more to the Spanish Social Security system than they have received back from it. This means that Catalan citizens and companies have paid almost \u20AC25 billion more in Social Security contributions than they have received in pensions, work incapacity grants and unemployment benefits. Looking at the data for the whole of Spain (including Catalonia) in the same period, the Spanish Social Security system had a \u20AC61.56 billion deficit between 1995 and 2010. Without taking into account the contributions paid or the pensions or subsidies received in Catalonia, Spain would have had a \u20AC86.33 billion Social Security deficit. This means that only taking into account the Social Security contributions, Catalan citizens and companies transfer a great deal of their taxes to pay for pensions and unemployment benefits to people living in the rest of Spain. Furthermore, it shows that without Catalonia the Spanish Social Security system would have a larger deficit. In the middle of Catalonia\u2019s self-determination process and its viability as an independent state, the study sheds some light on the so-called fiscal balances: the revenue Catalonia produces in taxes and what it gets back in terms of services, investments and funds.


Looking at the 1995-2010 period, while Catalonia would have had a Social Security surplus of 3,384 euros per person, equivalent to 12.7% of the Catalan GDP, a hypothetical Spain without Catalonia would have had a deficit of 2,228 per person, equivalent to 10.1% of its GDP.

Catalan Social Security surplus uninterrupted between 1997 and 2008

While analysing individual years, between 1997 and 2008 Catalan citizens and companies have contributed more to the Social Security system than they have received back from it. A hypothetical Spain without Catalonia had a Social Security surplus only between 2003 and 2007. Catalonia had 4 years with Social Security deficit (1995, 1996, 2009 and 2010), against 12 years with surplus. A hypothetical Spain without Catalonia would have had 11 years with deficit against 5 years with surplus.

Considering the values from 2010, between 1995 and 2008, Catalonia had a Social Security Surplus of \u20AC28.17 billion. In 2009 and 2010, it had a Social Security deficit of \u20AC3.39 billion. Spain without Catalonia had a \u20AC 38.08 billion deficit between 1995 and 2008 and a \u20AC48.25 billion deficit in the two year period 2009-2010.

Deficit in 2009 and 2010 in Catalonia, while the deficit was between 2008 and 2010 in Spain

In 2009 and 2010, Catalan citizens and companies received more money from the Social Security than they had contributed due to the economic crisis and the high unemployment levels. In 2009 they received \u20AC172 more per person and in 2010, \u20AC293 more. However, looking at the data of a Spain without Catalonia, Spaniards received \u20AC568 per person in 2009 from the Social Security system and \u20AC679 in 2010. Furthermore, Spain without Catalonia would have had a \u20AC2.70 billion Social Security deficit already in 2008, while Catalonia had a surplus of \u20AC2.69 billion that year. Therefore, Spain\u2019s Social Security system (taking into account Catalonia) had a \u20AC5 million deficit in 2008, \u20AC23.22 billion deficit in 2009 and \u20AC28.46 billion deficit in 2010.

Data shedding light on Catalonia\u2019s fiscal deficit

In the middle of Catalonia\u2019s self-determination process and its viability as an independent state, the study sheds some light on the so-called fiscal balances: the revenue Catalonia produces in taxes and what it gets back in terms of services, investments and funds. The final fiscal balance is made up of specific balances, such as the Social Security one. This official study, issued on Wednesday evening, takes into account the revenue and expenditures of the Social Security system and related bodies (the Social Security Treasury, the Labour Accidents Friendly Societies, the Public Employment Service, the Salary Guarantee Fund and Civil Servants\u2019 Friendly Societies). It analyses the contribution made by Catalan citizens and companies between 1995 and 2010. The last data available is from 2010. Earlier than 1995 the Social Security was also funding the Healthcare system and therefore the data are not comparable. This is why the study only covers the 1995-2010 period.

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