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Catalonia's fiscal balance after the deployment of the 2006 Statute of Autonomy

Paradigmes: economia productiva i coneixement
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  • Economics
  • Political Science


240-254_33_ANG.qxp:núm.2 240-254_33_ANG.qxp:núm.2 3/12/09 13:14 Página 240 Catalonia’s fiscal balance after the deployment of the 2006 Statute of Autonomy The object of this work is to do an approximate estimate of Catalonia’s improved fiscal balance following the financial deployment of the Statute of Autonomy of Catalonia applied to 2007, defined as the base year of the new financing system under common regime. ALFONS GARCIA MARTINEZ* * I would like to thank very especially Antoni Soy, member of the Spanish-Catalan Mixed Com- mission of Economic and Fiscal Affairs and one of the negotiators of the Catalan side to the pro- cess that led to the new 2009-2013 financing system, for his contributions, suggestions and clarifications on the subject of this article. Miscellany 240-254_33_ANG.qxp:núm.2 3/12/09 13:14 Página 241 With the agreement of the Council of Fiscal and Financial Policy of 15 July 2009, laying the founda- tions of the 2009-2013 financing system under common regime, the deployment of the two main financial instruments provided for in the 2006 Statute of Autonomy of Catalonia (SAC) was com- pleted.1 The third additio- nal arrangement of the SAC had been already implemented since 2007, by which Catalonia would receive a portion of territo- rialised infrastructure investment from the Spa- nish government over the 2007-2013 period equiva- lent to at least its propor- tional contribution to national GDP. The specific contents of the «national infrastructure investment» concept was a matter of controversy between the Spanish and Catalan governments, based on which an agreement was reached that was imple- mented from 2008, with retroactive effects back to 2007. Both the reform of the financing system and arrangements regarding investment by the Spanish government are to reduce Catalonia’s negative fiscal balance in relation with overall Spain, according to all available estimates. Per- sistence in time and espe- cially the size of the negative fiscal balance

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