The Economy of Catalonia

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and to the private sector. Another part of these taxes, however, never returns to Catalonia, being allocated to the funding of the Spanish State’s general expenses and to solidarity with other Autonomous Regions of Spain. In order to determine the amount of additional revenue that Catalonia would obtain if it were to become a State, it is assumed that the present tax system and fiscal pressure are maintained. On this basis, the additional revenue obtained by Catalonia would be from the taxes that the Catalans currently pay to the Spanish State, less the transfers of funds made by the Spanish State to the Generalitat and to the Catalan local governments, since such transfers would naturally cease to be made. These transfers are recorded here as a new expenditure to be assumed by the Generalitat, since it will have to cover them. The data forming the basis of this study have been obtained from the calculation of the fiscal balance between Catalonia and the Spanish public sector in the period 2006-2009. Consequently, the additional funds that Catalonia would have obtained in these years, if it had been an independent State, have been estimated in accordance with the hypotheses of the study, as explained below. The methodology used to estimate the additional revenue that Catalonia would obtain is based on the territorialisation of public revenue according to what is known as the flow criterion. According to this method, revenue is assigned to the territory where the economic capacity subject to taxation is located. This is the system that most clearly determines the tax revenue which is generated in Catalonia in consideration of its income, wealth or consumption, regardless of who ultimately bears the tax burden or of where the tax collection takes place, since these factors depend on how the tax administration is organised. In accordance with this methodology, the various types of taxes have been allocated to Catalonia in the following way: – Revenue generated by personal income tax: according to the percentage represented by the Spanish State’s part of the tax- payable figure in Catalonia versus the figure for Spain’s Autonomous Regions under the common system. – Revenue generated by corporate tax: according to the amount of the gross operating surplus in Catalonia versus the figure for Spain’s Autonomous Regions under the common system. 132 The Economy of Catalonia
– Non-resident income tax: according to the amount collected in Catalonia versus the figure for Spain’s Autonomous Regions under the common system. – Civil servant contribution payments: according to the number of members of the civil servant mutual associations in Catalonia versus the overall figure. – VAT: according to the indicator of final consumption estimated by INE (Spanish National Statistics Institute) for the regional allocation of VAT to Catalonia. – Special taxes: according to the indexes prepared by INE for the regional allocation of these taxes to Catalonia. – Tax on insurance premiums: according to the value of the premiums contracted in Catalonia versus the overall amount. – Taxes on foreign trade and deduction and levy on sugar and isoglucose: according to the final consumption of Catalan households versus the overall amount. – Fees and other revenue: according to Catalonia’s GDP. – Revenue of Spanish State autonomous bodies, Spanish State agencies and other public bodies: according to Catalonia’s GDP. – Income from Social Security contributions: according to the amount collected in Catalonia versus the overall figure. – Other revenue from Social Security: according to Catalonia’s GDP. – Operating income from public companies, including Spanish State ports and AENA (Spanish Airports and Air Navigation): the revenue from the Catalan ports has been allocated to Catalonia in this study; in the case of AENA, the revenue corresponding to the percentage of passengers at the Catalan airports has been territorialised. Table 1 shows the additional revenue that Catalonia would obtain as an independent State according to the hypotheses of the study and the calculation method that has been applied. There is a notable drop in revenue as from 2008 due to the economic crisis: while additional revenue has been calculated to the amount of 49,270 million euros in 2006 and 53,915 million euros in 2007, this revenue fell to 46,920 million euros in 2008 and to 40,877 million euros in 2009. Tax revenue and public spending 133
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The Economy of Catalonia Questions
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Oriol Amat, Núria Bosch, Antoni Ca
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Contents Preface to the English Edi
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Preface to the English edition This
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Preface (Translated by Jordi Vilano
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Introduction (Translated by Jordi V
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1 The position of an independent Ca
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United States such as Massachusetts
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2010, Catalonia was in 64th place o
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fact, this combination of factors a
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ilar population to Catalonia and sh
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ence in emerging markets, especiall
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fact, the high proportion of multin
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egion in volume of inward investmen
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mega-regions towards sustainability
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also be confronted with the paradox
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the reasons that are emerging for a
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This 47.1% signifies a considerable
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2005 2006 2007 2008 2009 2010 Estim
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and there would be no need for cuts
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centage of freight between Spain an
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to prevent Spain’s point-blank re
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) The effects on markets, especiall
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speak of the coefficient of central
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Bibliographical references Amat, O.
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Rodríguez Mora, J. V. (2012) «Por
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For the purposes of economic analys
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It should also be recalled that the
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The reasons for regional economic i
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their mind» about European integra
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the Copenhagen criteria, which esta
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in the European Economic Area, whic
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ing the status of member of the Uni
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3.2. In or out of the European Unio
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were to veto the request, experts e
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In November 2012, Granell expressed
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-The regulatory fragmentation that
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would have to find alternative solu
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economic shocks, any one of which,
Page 83 and 84: In my opinion, an impartial reading
Page 85 and 86: 4 In or out of the euro 4.1. An ind
Page 87 and 88: Analysis of possible scenarios Scen
Page 89 and 90: official currency and financial ins
Page 91 and 92: nisms and the European interbank pa
Page 93 and 94: arising from the integration of a h
Page 95 and 96: 4.2. In or out ofthe euro: certaint
Page 97 and 98: prevent or limit damage to the mult
Page 99 and 100: Let me make a short comment on the
Page 101 and 102: context of a Spain that leaves the
Page 103: Col·lectiu Wilson (2012) «Europe,
Page 106 and 107: termediation, which is performed by
Page 108 and 109: The Catalan financial system The Ca
Page 110 and 111: Financial institutions with headqua
Page 112 and 113: • The bank was put up for auction
Page 114 and 115: had risen by 16.3%, staff had been
Page 116 and 117: go to Brussels and say that they ha
Page 118 and 119: Appendix This article is complement
Page 120 and 121: The Catalan Public Sector in the Eu
Page 122 and 123: 20% 18% 18.8% 16% 16.2% 15.5% 13.6%
Page 124 and 125: 9% 8% 7.9% 7% 6.5% 6.4% 6.2% 5.8% 5
Page 126 and 127: It is very obvious that Madrid has
Page 128 and 129: Spain Catalonia Generalitat Variati
Page 130 and 131: - Armed Forces: in the form of army
Page 132 and 133: Pérez, F. (DIR), Cucarella, V. and
Page 136 and 137: 2006 2007 2008 2009 Direct taxes 17
Page 138 and 139: method, that is to say, the expense
Page 140 and 141: itory. The same applies to the prog
Page 142 and 143: 2006 2007 2008 2009 Spanish State e
Page 144 and 145: e obtained. Table 3 shows that the
Page 146 and 147: with the EU in the period 2007-2013
Page 149 and 150: 8 Debt and distribution of assets 2
Page 151 and 152: this study. The difference between
Page 153 and 154: the State’s property and debts on
Page 155 and 156: It may be asked whether the new Cat
Page 157 and 158: The main source of International La
Page 159 and 160: Principles of distribution of asset
Page 161 and 162: Immovable property of the State con
Page 163 and 164: Social Security Reserve Fund On con
Page 165 and 166: Investments according to Additional
Page 167 and 168: Forecasts Million euros 2007 2008 2
Page 169 and 170: Possible negotiation scenarios What
Page 171 and 172: Even if it were only possible to ev
Page 173 and 174: States that form part of 21st-centu
Page 175: Spanish Royal Decree 496/1987, of 1
Page 178 and 179: Social Security contributions, pens
Page 180 and 181: ury and its managing agencies (auto
Page 182 and 183: citizens tend to join the labour ma
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in the economic, social and cultura
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declaration of independence, the bo
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oycott would have a more pronounced
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the will of the people. The great m
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Guinjoan, M. and Cuadras, X. (2011)
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Denmark, Finland, Austria, the Neth
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2012 Company Sector Sales (€m) 1
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Export companies There were 43,176
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Spain, and appreciably more than th
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Conclusions After considering how c
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likely to be in the firing line are
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IDESCAT (2013), based on data from
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the sample represents 20.8% of its
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No opinion Increase the centralisat
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sioners, business people and/or the
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Impact on the Catalan economy In th
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alternative. This is not supported
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More specifically, 94.6% of pension
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37.8% 57.8% 4.4% Yes No opinion No
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fessionally and 47.8% believe it wo
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13 Conclusions: economic certaintie
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having less potential and less per
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Catalonia had been an independent S
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ands and a declining proportion of
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Anton Gasol. Doctor of Economics, f
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The Economy of Catalonia

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