fiscal agreement

Spanish Socialist Party will not support specific fiscal agreement for Catalonia

August 10, 2015 10:57 PM | ACN

The Spanish Socialist Party (PSOE) closed the door Monday on supporting a hypothetical specific economic agreement between Catalonia and Spain, similar to the specific fiscal pact already in existence for the Basque Country, which would recognise Catalonia’s “specificities”, strengthen its self-rule and better fund its institutions, public services and infrastructure. However, the PSOE did urge the Spanish Government “to update” the current inter-territorial fiscal scheme in order to improve the funding of Autonomous Communities such as Catalonia, calling for “a fairer and more equitable model”. A majority of Catalan society has been asking for such a fiscal agreement for many years, which would help reduce the chronic fiscal deficit while keeping solidarity with poorer regions.

Sweden and Australia to be models for Catalonia's own Treasury

July 27, 2015 10:04 PM | ACN

The President of the Catalan Government, Artur Mas, presented on Monday the model for Catalonia's own Treasury, which will be developed should "the political conditions" be there, he stated. "This is the most serious attempt to build our own Treasury in the last 300 years", stressed Mas. "After two years of work, we are ready" to launch and Catalans should not waste "this great opportunity", he stressed. "Without our own Treasury, there is no real self-government", the Catalan President stated. The system would include Catalonia's own Tax Agency and  is inspired by the taxation authorities in countries such as Sweden, Denmark and Australia, which prioritise cooperation with taxpayers over controlling them. In these models, efforts are concentrated on severely persecuting tax evaders and underground economy, while the vast majority of tax-payers who deal correctly with their fiscal obligations receive assistance and have unlimited access to their fiscal data.

IMF recommends that Spain increase the fiscal capacity of regional governments

June 8, 2015 09:51 PM | ACN

The International Monetary Fund (IMF) has reviewed and improved its economic growth forecasts for Spain, going from a 2.5% growth rate for 2015 forecast in April to a 3.1% one foreseen this June, and from 2% to 2.5% for 2016. However, the IMF has also issued recommendations and warnings, emphasising that Spain will have to carry out "additional fiscal efforts" and "structural reforms" in order not to jeopardise the country’s economic recovery. The IMF recommends that Spain reduce the costs of public healthcare and education by making users pay for part of the services. According to the international organisation, Autonomous Community governments – such as Catalonia's – should have greater fiscal responsibilities in such systems since they exclusively manage them. In this vein, the IMF has praised the fiscal consolidation efforts undertaken over the past few years by regional governments and has asked for an increase in their funding and fiscal powers, as well as for the adapting of the deficit targets to their needs.

BBVA studies question Spain's inter-territorial fiscal scheme, which funds the regional governments

May 6, 2015 01:26 AM | ACN

The Autonomous Community governments, such as the Catalan Executive, cannot meet the deficit objectives imposed by the Spanish Government because of the current inter-territorial fiscal scheme, according to a report from the Spanish banking giant BBVA. The bank has published two studies on two consecutive days that shed some light on this scheme and its consequences. In the first report, the BBVA states that spending per capita on basic Welfare State services, such as healthcare and education, varies by 60% among the Autonomous Communities. A second report highlights that the Spanish Executive reduced the funds for the Autonomous Community governments in 2014, despite the economic situation and the intake of public revenue improving. On top of this, it refuses to review a fiscal scheme that legally expired 16 months ago and that was designed before the financial crisis.

Independent Catalonia’s economy would get an A+ rating, 7 levels better than the current one

January 29, 2015 11:04 PM | ACN

According to a study by the Professional Association of Economists of Catalonia (Col·legi d’Economistes), an independent Catalonia would obtain a much better grade from rating agencies than it currently gets, taking into account its diversified economy and higher GDP per capita than the European average. Specifically, it would obtain an A+ rating, 7 levels higher than the current BB ‘junk bond’, using Standard&Poor’s classification. The study highlights that without the current fiscal deficit with the rest of Spain, the rating would be “at least” that of the Basque Country and would enable the Catalan Government to access the international financial markets. Catalan taxpayers pay much more to the Spanish Government than the amount they get back in terms of services and infrastructure; a fiscal deficit equivalent to between €13bn and €17.5bn per year.

Catalonia predicts 2.2% deficit for 2014, while Spanish Government imposed a 1% target

January 22, 2015 12:20 AM | ACN

The Catalan Government is expecting to post a 2.2% deficit for the whole of 2014, corresponding to some €4.41 billion. However, the definitive figure will not be known until March. This is more than  double the 1% deficit target that the Spanish Government unilaterally imposed on the Catalan Executive. Over the last few years, the two governments have quarrelled about deficit targets, since the Spanish Executive is imposing much stricter objectives on the Autonomous Communities than those it allows itself, despite regional governments exclusively managing and funding the basic Welfare State services such as healthcare and education. For instance, for 2014, the Spanish Government only allowed the Autonomous Communities to only have 15% of the whole deficit allowed by the European Union to Spain’s entire public sector, despite managing some 35% of the country’s public funds and basic services.

Catalan Socialist leader insists on a Constitutional Reform as the "only" solution for the current political situation

December 10, 2014 10:47 PM | ACN

Miquel Iceta, First Secretary of the Catalan Socialist Party (PSC), proposed his road map for the coming two years: no early elections and broad Constitutional Reform to better fit Catalonia into a federal Spain. On Wednesday Iceta held his own conference after those of the Catalan President and leader of the centre-right pro-Catalan State coalition (CiU), Artur Mas, and the left-wing independence party (ERC), Oriol Junqueras. While the two others support independence, Iceta opposes it. He totally rejected the road maps proposed by Mas and Junqueras and insisted on the need to work "on the real problems of Catalans", such as poverty, unemployment, budget cuts in public healthcare, etc. However, the PSC leader admitted that "there will be no solution without a vote", but "a real vote". Iceta said that before breaking up with Spain, Catalans should be allowed to vote on "a new agreement" to remain in Spain. In order to facilitate such a new agreement, he proposed that the Spanish Government cancel part of the Autonomous Communities' debt.

Catalan President: Spain will negotiate if “the open conflict” generates “concerns” at international level

November 29, 2014 12:35 AM | ACN

The President of the Catalan Government, Artur Mas, confirmed that Spain and Catalonia are already now in a situation of “open conflict”, after the criminal prosecution launched against him and two other members of his Cabinet. However, Mas asked the Spanish Government to end its “angry” attitude and start negotiating, proposing ways out of the current situation. The Catalan President added that the international community will ask the Spanish Government to sit and talk if the current open conflict finally generates “concerns” at an international level. Mas was addressing an economic forum with the main representatives of Catalonia’s business community. The Spanish Minister for the Economy, Luís de Guindos, was also present and they were in friendly conversation for a little while. De Guindos emphasized that the Spanish Government has issued “bailouts for Catalonia in difficult moments”.

Catalan President ready to call early elections to achieve independence from Spain in 18 months

November 25, 2014 11:57 PM | ACN

The President of the Catalan Government, Artur Mas, proposed the next steps in Catalonia’s self-determination process: early elections to the Catalan Parliament and, if a single pro-independence list get an absolute majority, negotiations to reach full independence in 18 months. Such a list should be formed by independent personalities and recognised professionals, who should commit to only run once, with traditional parties adopting a secondary role. After negotiating independence and building the new state’s basic structures, a referendum to ratify the new state’s genesis and constituent elections would be called, in which traditional parties would again be running separately. Mas said he was ready to be the front-runner or to end such a list, the latter case ruling out the possibility of his being re-elected. However, he will only call early elections if parties and civil society organisations transform them into such a ‘de facto’ referendum on independence. After years of peaceful citizen mobilisations, now “it is time for the definitive vote” and the “only” way of doing it is through early elections, he said.

Spanish Government rules out a new inter-territorial fiscal scheme, despite the current one having legally expired

November 19, 2014 10:45 PM | ACN

On Wednesday, the Spanish Finance Minister, Cirstobal Montoro, refused to start negotiating and launching a new funding scheme for the Autonomous Communities before 2016, even though the current model had to be reviewed before January 2014. The Catalan Government has been insisting on its review since 2012, since the system does not properly fund basic public services such as healthcare and education in times of economic crisis, areas which are entirely managed by the Autonomous Communities. In addition, Catalonia suffers a permanently high fiscal deficit: each year Catalan taxpayers have to give away some 8.5% of Catalonia’s annual GDP to fund services and infrastructure in poorer regions in Spain. The problem is that after such transfers, public services in the poorer parts of Spain have more money per inhabitant than the Catalan ones and basic infrastructure in Catalonia is not built. The Spanish Government has been postponing the new model, despite the territorial tensions and the self-determination demands.

Rajoy does not back Socialists' Constitutional Reform to better integrate Catalonia

November 17, 2014 10:03 PM | ACN

On Sunday the Spanish Socialist Party (PSOE) approved another solemn declaration proposing a Constitutional Reform, after it already did so in July 2013. Once again the PSOE has not detailed their proposal, but insists on building a true federal model, going beyond the current Autonomous Community system. The People's Party (PP) – which runs the Spanish Government – opposes such a reform although they "agree to talk" about it. The PSOE wants the PP to "immediately" approve the creation of a Constitutional Reform committee at the Spanish Parliament and set expert hearings to debate ideas. However, they do not want "to rush" to solve Catalonia's "urgent problem", as explained by the President of Andalusia and PSOE's Chairperson, Susana Díaz. Meanwhile, the alternative left party Podemos, which could win the next Spanish elections, has elected Pablo Iglesias as its Secretary General, who has promised a broad Constitutional Reform. Iglesias recognises Catalonia's right to self-determination but considers that the Catalan Government cannot approve a unilateral declaration of independence.

People's Party (PP) continues to criticise November 9's participatory process and announces legal actions

November 10, 2014 08:16 PM | ACN

The day after 2.3 million citizens gave their opinion on Catalonia's independence, the reactions of Spanish and Catalan parties did not bring great surprises. The PP, which runs the Spanish Government, considered the vote "illegal" and announced potential legal actions. In addition, they stated that "a silent majority" did not vote. The Spanish and Catalan Socialist parties (PSOE and PSC) insisted on a Constitutional Reform and rejected an independence referendum. Populist party Ciutadans (C's) asked for early elections, while Spanish nationalist UPyD wanted Catalonia's autonomy to be suspended. Parties supporting self-determination praised Sunday's vote. The governing centre-right pro-Catalan State coalition CiU wants to explore negotiations, although Liberal CDC is sceptical about the results. The left-wing independence party ERC and the alternative left and radical independence CUP rejected negotiations with Madrid. The green socialist and post-communist coalition ICV-EUiA asked for a binding referendum.

Milestones in Catalonia's self-determination before 2012 massive pro-independence demonstration

November 8, 2014 09:03 PM | ACN / Gaspar Pericay Coll

On Sunday, Catalans are being called to give their opinion about independence in a participatory process, organised by the Catalan Government in cooperation with more than 40,000 volunteers and many town halls, which replaces the original consultation vote also scheduled for the 9th of November. The Spanish Government appealed against the first vote, the Constitutional Court suspended it, the Catalan Government launched an alternative process and the Spanish Government filed a new appeal, accepted by the Constitutional Court. However, this time the non-binding participatory has been maintained with a wide consensus among Catalan institutions a wide representation from the civil society. These are the three last steps of an intense self-determination process, which started with the approval and trimming of the Catalan Statute of Autonomy and was shaped by four massive demonstrations and a series of "no" and threats by the Spanish authorities. Here is a summary of the main milestones of this process before the massive pro-independence demonstration of 2012.