The Economy of Catalonia

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Aside from the debt, consideration should be given to the financial commitments for future years of the Catalan Ministries of Town and Country Planning; Justice, and Education, respectively, derived from the building of public infrastructures and facilities, as well as the commitments undertaken for future years by the Catalan Health Service (CatSalut) and by the Catalan Institute for Assistance and Social Services (ICASS). Indebtedness is not considered by the EDP method but the budgetary allocation for meeting payments should be taken into account in the budgets of the respective years (see Table 3). 2014 Generalitat CatSalut ICASS Resta d’anualitats T. Generalitat 2014 Resta d’anualitats T. CatSalut 2014 Resta d’anualitats T. ICASS Chap. II 382,844 9,286,059 9,668,903 81,174 1,831,237 1,912,411 15,999 454,048 470,047 Chap. IV 593,323 22,958,483 23,551,806 20,126 165,238 185,364 Chap. VI 554,149 2,126,000 2,680,149 46,233 207,946 254,179 578 1,686 2,264 Chap. VII Chap. VIII 397,520 1,455,504 1,853,024 45,016 819,304 864,320 1,217 1,986 3,203 232,879 849,564 1,082,443 21,125 261,427 282,552 Total 38,836,325 3,498,826 475,514 Thousand euros Source: Own work based on the report of the Public Audit Office for Catalonia on the General Account of the Generalitat for 2010. 31 Table 3. Expense commitments undertaken for future years What part of the Spanish public sector’s debt should rightly be inherited by the new Catalan State? In the separation of States, the distribution of the debt has no other purpose than to assure its collection by the predecessor State’s creditors. Both the new State and the predecessor State should appear before the world with sufficient financial credibility to assure their respective economic activities on a normal basis and the normal provision of services. Albert Pont has stated that International Law 32 bases the distribution of 31. The Public Audit Office for Catalonia (Sindicatura de Comptes) recommends that an exhaustive study should be carried out on the situation of the expense commitments undertaken for future years. Dissenting opinion of the Board Member Jordi Pons i Novell on the General Account of 2010. 32. International Law is based on the general principles of law, customs, jurisprudence, practice and the Treaties. See the legislative annex at the end of this paper. A large 150 The Economy of Catalonia
the State’s property and debts on various principles of universal application such as equity, proportionality and economic capacity. It must be trusted that, because Catalonia is in Europe, the negotiation of its separation can unfold as befits two modern States subject to International Law. If no voluntary negotiation takes place between subjects with full rights, without further formality, however, the intervention of the jurisdiction provided in International Law will evidently be required. In both cases –negotiation or the intervention of arbitrators or judges– it will be necessary to deal with the criteria for allocation of the debt. It should be determined whether the debt will be distributed according to the percentage of the population or the GDP of Catalonia, by direct allocation or by any other criterion that may be deemed appropriate. On the basis of its population, 16% of the debt would be the amount that should be taken up by Catalonia, and on the basis of the GDP, 19.8%. The criterion of distributing the predecessor State’s debts according to each territory’s economic weight within the overall economy is often applied 33 and this would probably be the approach that would prevail for Catalonia. The applicable criterion should be determined by negotiation or arbitration. Likewise, it may be considered that the criterion to be applied in the distribution of the debt will probably be the one to be applied in the distribution of assets. The special case of Social Security According to data from the Bank of Spain, Spanish Social Security is at once both the creditor and the debtor of the Spanish State. In the first quarter of 2013, Social Security had a debt with the State of 17,188 million euros and at the same time it was a creditor for public debt to the amount of 60,201 million euros. The balance between the Spanish State and Social Security was favourable to the latter to the amount of 43,013 million euros (see Table 4). Since the balance is in favour of Social Security, the question of having to distribute any debt other than that of Spain’s Central Administration is not considered. part of what is said here with respect to the distribution of assets and debt is based on the model of distribution of property presented by Albert Pont in his book Delenda est Hispania, p. 447 et seq. 33. Albert Pont (2012:479). Debt and distribution of assets 151
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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,
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In my opinion, an impartial reading
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4 In or out of the euro 4.1. An ind
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Analysis of possible scenarios Scen
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official currency and financial ins
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nisms and the European interbank pa
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arising from the integration of a h
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4.2. In or out ofthe euro: certaint
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prevent or limit damage to the mult
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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 134 and 135: and to the private sector. Another
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: this study. The difference between
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
Page 184 and 185: in the economic, social and cultura
Page 186 and 187: declaration of independence, the bo
Page 188 and 189: oycott would have a more pronounced
Page 190 and 191: the will of the people. The great m
Page 192 and 193: Guinjoan, M. and Cuadras, X. (2011)
Page 194 and 195: Denmark, Finland, Austria, the Neth
Page 196 and 197: 2012 Company Sector Sales (€m) 1
Page 198 and 199: Export companies There were 43,176
Page 200 and 201: 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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