The Economy of Catalonia

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Spain, and appreciably more than the average for the last10 years, which was €1,005 million (Expansión,2013). Many of the foreign multinationals in Catalonia are industrial enterprises with substantial fixed assets there. Consequently, they would need very powerful motives to move away. It would be easier, on the other hand, for them to transfer their Spanish headquarters out of Catalonia and of course to halt investments. In any event, such decisions are taken in the light of purely rational criteria, strictly in order to further the firm’s interests. The shareholders of many multinationals and large companies include international investment funds whose only concern is profitability: other factors, as long as they are not detrimental, are of minor importance (Tugores, 2012). In recent years certain multinationals have moved their headquarters from Catalonia to Madrid, responding to the pull of the capital and more attractive taxation for individuals . Among them are Merck (2007), Abbott (2010), Deutsche Bank(2010), Ausonia(2012), Cobega(2012), Schlecker(2013) and Procter&Gamble.In all likelihood the new situation will cause the number of such moves to rise. Multinationals, like other companies, need political, economic and social stability. In order to run their business successfully, they must also avoid uncertainty as far as possible. For that reason it is important for the period of uncertainty generated by the independence process to be as short as possible. When will foreign multinationals start worrying about Catalonia becoming a separate State and how concerned will they be? They are undoubtedly following the process very closely. Their policy, for the time being, will be to wait and see. It is vital in the interim for the process to evolve in a peaceful and democratic way and for Catalonia’s intentions to include EU membership and respect for existing commitments. If things can be done on the basis of agreement and with the greatest possible celerity, this will help allay any fears that may arise. Catalonia is attractive to foreign investors. Indeed, once the independence process is consolidated, it could provide a good platform for attracting foreign capital and stimulating new investment. 198 The Economy of Catalonia
Ideological, non-economic factors Throughout the process, close attention must be paid to psychological factors and feelings. Strong anti-Catalan feelings have arisen in other parts of Spain in recent years, along with fierce opposition to Catalonia becoming a State in its own right. This is harmful: we must proceed with caution, striving to enlighten and persuade and to avoid provocation. Even so, it is more than likely that the feelings stirred up by certain sectors, political groups and sectors of the press will fire stern resistance to the independence process and a boycott of everything that smacks of Catalonia. We must bear in mind that all Spanish political structures, the Spanish government, the majority of political parties, the media, and Spanish civil society are bitterly hostile to the process that could lead Catalonia to statehood. In Catalonia itself, prominent business people have displayed caution and avoided taking a stand. Only José Manuel Lara, the owner of the major publishing house Planeta, has threatened to move his firm away. The entire process will, of course, be followed with concern by the EU and the United States administration, for whom it inevitably adds a new complication to the many already on their agendas. Should the need arise, however, they would react to prevent the emergence of non-democratic situations liable to undermine stability. It is more than likely that they wouldultimately intervene, either directly or indirectly. Other factors to bear in mind By becoming a separate State, Catalonia could concentrate its efforts on the areas of greatest interest to it. When the centre of decision-making is close at hand, it is easier to provide efficient economic stimuli and, as a new State, Catalonia could design a more flexible, streamlined and business-friendly administration and an attractive fiscal policy. Catalonia is an interesting country for foreign investors: it has a market of 7.5 million inhabitants with a fairly high level of income; its dynamism and potential for innovation are acknowledged throughout the world; it is an open, enterprising society with a geographically strategic location.These advantages, if accompanied by an administration that offers attractive policies, could encourage companies to locate their headquarters or centre of production here. Impact on the number of companies and multinationals 199
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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
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Appendix This article is complement
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The Catalan Public Sector in the Eu
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20% 18% 18.8% 16% 16.2% 15.5% 13.6%
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9% 8% 7.9% 7% 6.5% 6.4% 6.2% 5.8% 5
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It is very obvious that Madrid has
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Spain Catalonia Generalitat Variati
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- Armed Forces: in the form of army
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Pérez, F. (DIR), Cucarella, V. and
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and to the private sector. Another
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2006 2007 2008 2009 Direct taxes 17
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method, that is to say, the expense
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itory. The same applies to the prog
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2006 2007 2008 2009 Spanish State e
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e obtained. Table 3 shows that the
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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
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 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
Page 218 and 219: More specifically, 94.6% of pension
Page 220 and 221: 37.8% 57.8% 4.4% Yes No opinion No
Page 222 and 223: fessionally and 47.8% believe it wo
Page 225 and 226: 13 Conclusions: economic certaintie
Page 227 and 228: having less potential and less per
Page 229 and 230: Catalonia had been an independent S
Page 231: ands and a declining proportion of
Page 234: Anton Gasol. Doctor of Economics, f
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The Economy of Catalonia

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