How much will Catalonia pay for Spain's Economic Policies

The budget for 2013 will be difficult due to the economic and financial context in Catalonia and the whole Eurozone. But it will be even worse due to certain decisions taken by the Spanish government that will further negatively affect the budget.

A list of these decisions will be useful to understand why they will all damage the Catalan government's accounts, which it should be remembered is the administration that delivers the public services inherent to the welfare state: education, health and social welfare.

Non-payment and unfulfilled commitments to Catalonia by the Spanish government:

- Outstanding payments corresponding to unfulfilled commitments to investment in infrastructure in 2008, 2009 and 2010 as established by the Third Additional Provision of the Catalan Statute of Autonomy, to the amount of almost €1.7bn.

- Non-compliance of the same Additional Provision corresponding to the budget for 2013, to the tune of €661m.

Provoked increased expenditure

- Assigned revenues (that the Spanish state transfers for specific expenditure items, many of which are committed by laws passed by the Spanish government) which have been cut back and which the government of Catalonia has had to compensate in part, with a negative impact of €296m.

- Raised VAT paid by the government of Catalonia, and which will be collected by the Spanish state (for the Spanish state, an increase in VAT has no impact as it pays itself): negative impact €66m.

Boycott of the Catalan government's tax autonomy

- Appeals before the Constitutional Court against certain taxes and fees approved by the Catalan government under the tax autonomy allowed by the Constitution and the Statute of Autonomy, which are suspended during the hearings. Just the suspension of the Bank Deposits Tax payable by financial institutions cause a negative impact of €500m on the 2013 Budget in lost revenue.

Appropriation of debt through taxes collected in Catalonia

- Establishment of a deficit cap of 0.7% of a total of 4.5%; contrary to recommendations of the European Parliament and inversely proportional to the participation by the Regions in the overall expenditure. Applying the criterion of proportionality, the deficit should be 1.7%, which would avoid cuts to the sum of €2bn.

If you add up, you will see that the result is over and above the amount they say is to be axed (€4bn) in order to balance the Catalan government's 2013 budget.

Pere Aragonès