The Economy of Catalonia

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and services. A single example will suffice: of the 33,304 million euros in subsidies distributed to industrial companies and services between 2004 and 2009, Catalonia received 138.6 million euros. This figure represents 0.42% of the total amount granted, while Catalonia’s economic weight is equivalent to 20% of the GDP of the entire Spanish State. This means that in the period under consideration, Catalonia has failed to receive almost 6,800 million euros. Even so, other iniquities of the system that have not been taken into account in the calculation cannot be excluded. 48 Analysis of the sectors favoured by the public company privatisation process since 1985 A series of privatisations of public companies took place as from 1985. These companies belonged to the public entities INI, TENEO, SEPI, SEPPA and AIE, etc. Although this subject also goes beyond the scope of this paper, it would be well to point out the sectors that were favoured by this process. 49 The fiscal deficit in itself, which has been precisely quantified in the last 16 years, is of 230,779 million euros according to the monetary flow criterion in the last 25 years. Beyond all doubt, the rationale of one of the various causes that is prompting Catalan society to propose at present an independent State for Catalonia lies in the grievance that has been determined by the calculation of the fiscal deficit, on the basis of the results of the fiscal balance of Catalonia with the Spanish central public sector as published for both 2006-2009 and 2010 by the Catalan Ministry of Economy and Knowledge. 50 We will not enter the controversy, which has been analysed in depth by other authors, on the benefit flow and monetary flow criteria. Suffice it to say that, according to the recent study of the Balance of 2010, the fiscal deficit for 2010 was 16,543 million euros as per the monetary flow criterion and 11,258 million euros as per the benefit flow criterion. 48. Albert Pont (2012:472). 49. See: http://www.sepi.es/default.aspx?cmd=0001&IdContainer=46&lang=& idLanguage=&idContraste=. 50. http://www20.gencat.cat/docs/economia/70_Economia_SP_Financament/arxius/05%2021%20Balan%C3%A7a%20fiscal%202010c%20(llarg).pdf. 166 The Economy of Catalonia
Possible negotiation scenarios What part of Spain’s debt would Catalonia have to pay? Would Catalonia really have to pay anything? What would be the weight of this debt on the new Catalan State? Various possibilities should be considered a. No obligation for Catalonia to pay «No State debt of the predecessor State shall pass to the newly independent State». Consequently, this would be a literal interpretation of Article 38.1 of the Vienna Convention of 1983. b. Debt in exchange for fiscal deficit The calculation is simple: if the fiscal deficit of 1986-2010 totalling 230,779 million euros is deducted from the part of the Spanish State’s debt which Catalonia would assume according to the GDP (165,089 million euros), the Spanish State would be the debtor to Catalonia for the amount of 65,690 million euros. c. Debt versus distributable assets Part 1 of Table 10 shows what part of the Spanish State’s debt would correspond to Catalonia according to the population and GDP criteria. Part 2 of the table shows the assets of determinable value which would partly compensate the debt, so according to the population and GDP criteria, the balance would be respectively 77,820 or 106,811 million euros. Part 3 of the table shows the assets to whose value we do not have access. The value of this asset is truly immense and in many cases it is quantifiable if one has access to the pertinent information. Indeed, it is important to have such access since the valuation of this is essential for the distribution of assets. Part 4 of the table refers to assets derived from looting, theft, compulsion, etc., representing extremely large losses and very serious damages suffered by Catalan society for many years. The valuation and quantification of this property is very difficult. With respect to the privatisations of public companies which are listed in Part 5 of the table, it is a highly complex matter to analyse the enrichment of specific sectors to the detriment of the Catalan general interests which have taken place with the privatisations as from 1985. Debt and distribution of assets 167
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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
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context of a Spain that leaves the
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Col·lectiu Wilson (2012) «Europe,
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termediation, which is performed by
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The Catalan financial system The Ca
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Financial institutions with headqua
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• The bank was put up for auction
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had risen by 16.3%, staff had been
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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 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: Forecasts Million euros 2007 2008 2
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
Page 202 and 203: Conclusions After considering how c
Page 204 and 205: likely to be in the firing line are
Page 206 and 207: IDESCAT (2013), based on data from
Page 208 and 209: the sample represents 20.8% of its
Page 210 and 211: No opinion Increase the centralisat
Page 212 and 213: sioners, business people and/or the
Page 214 and 215: Impact on the Catalan economy In th
Page 216 and 217: 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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