Page 38 - DIVA_1_2016

CULTURE

such as the prohibition of the use of lans commemorated the 300th anni- by the Basque Country and Navarra).
the Catalan language, the public de- versary of the War of Succession in But the People's Party Spanish govern-
nial of the Catalan identity and the 2014, the prospect of the creation of a ment simply ignored the request and
punishment for cultural expression. new Catalan State in Europe was put scorned the Catalan institutions. In
Language is central to understanding on the table more clearly than ever. any case, one thing is clear: the fiscal
Catalonia's identity. Having survived imbalance is a key argument support-
three centuries of repression from The Fiscal Imbalance ing secession. An independent Cata-
Spain, Catalan is more widely spo- The long history of Spanish central- lonia would not have to pay taxes to
ken than a number of other official ism has resulted in Catalans tradi- Madrid that is invested elsewhere. In-
EU languages, yet it does not enjoy tionally valuing private initiative stead it could invest them to the bene-
recognition by EU institutions, as all rather than the state in order to de- fit of Catalans. Moreover, if Catalonia
Spanish governments have consist- velop. Catalonia has a strong net of were an independent state within the
ently ignored Catalonia's demand to small and medium size businesses European Union, roughly half of its
press for this. and many micro-entrepreneurs. With territory would be designated as pref-
roughly 17 percent of Spain's popula- erential area for EU structural funds.
In 2005, after 35 years of (so-called) tion, it provides about 20 per cent of In spite of its intra-territorial dispar-
"transition" after Franco's death, its GDP and almost one-half of the to- ity, Catalonia is considered as a single
Catalonia set about updating its tal industrial production and exports. unitary entity by the European Union
Statute of Autonomy to consolidate It also contributes about 24 per cent and thus, given its overall level of in-
its self-government and readjust the of Spain's total taxes, but public in- come is not eligible for these funds.
relationship between its national re- vestment in Catalonia is scarce when Thus, significant parts of Catalonia
ality and the Spanish state. The new related to either population or GDP that require public investment do not
Statute was approved in both the Cat- contribution or represents only about receive public aid neither from Ma-
alan and the Spanish Parliaments, as 10 per cent of the total. A number of drid nor from Brussels.
well as in the Spanish Senate. It was studies in recent years have estimated
then passed by a proportion of three the Catalan fiscal balance with Spain Can an independent Cata-
to one in the subsequent referendum showing not only a deficit (i.e. pays lan State be viable?
in Catalonia. Once it had been signed more than it receives back) but one of Clearly, the argument that Catalonia
by the Spanish King, it came into law the highest of any region in the Eu- is too small to be an economically
in the summer of 2006. But the ul- ropean Union. These studies estimate sustainable independent state is in-
traconservative People's Party, in the the Catalan fiscal imbalance with correct. Another central theme in
opposition at that time, as well as the Spain to be around 10 per cent of the anti-secessionist economic discourse
Spanish Ombudsman (appointed by Catalan GDP. This is a highly abnor- is based on the fact that Spain is the
the Socialist government) immedi- mal situation when comparing Cata- main market of Catalonia. Thus, se-
ately contested it in the Constitu- lonia to similar regions in other EU ceding from Spain would result in an
tional Court. After a long process of countries, where it is nowhere higher economic catastrophe because Cata-
deliberation the Court published its than 4 per cent. The fiscal imbal- lonia would lose its main market.
sentence in 2010, abolishing key ar- ance has been sustainable in the past However, there is no reason to expect
ticles of the text, particularly those because of Spain's relatively closed Spanish trade embargoes or a boycott
dealing with recognition of the Cata- economy. However it is not sustain- of Catalan products, particularly in
lan nation and the status of the Cata- able in the context of globalization. the EU context. Spanish citizens buy
lan language in Catalonia. For some Catalonia will never be globally com- Catalan produces due to their quality
constitutional law experts this was petitive if it has to carry such a heavy and price and not for some abstract
tantamount to a "legal coup d'etat" fiscal burden. Catalan companies pay solidarity with Catalans. In a world
perpetrated by the Constitutional high taxes, only to receive few public of increasingly free trade and global
Court that inevitably led to a conflict services and low infrastructure invest- markets, this rationale is no longer
between Catalan democratic legiti- ment. Not only does it hampers eco- valid. With its own state, Catalonia
macy and Spanish party-controlled nomic growth and the modernization would benefit from improved ad-
legality and demonstrated once again of the Catalan economy, but also im- ministrative efficiency and still have
the difficulties Spain has in accept- poverishes Catalan citizens. In 2010
ing and dealing intelligently with the Catalan Parliament unanimously
For a detailed analysis of the
its national, cultural and linguistic approved a resolution requesting the 5
diversity - a situation that has only Catalan government to negotiate a effects of the fiscal imbalance, see
increased the support of the Catalan fairer fiscal treatment for Catalonia the CCN Study "L'impacte de l'espoli
people for independence. As Cata- (similar to the one presently enjoyed fiscal sobre el territori", available on
www.ccncat. cat.

36 DIVA . INTERNATIONAL DIPLOMAT