Up to twenty institutions of Catalan civil and business society jointly demand an “ambitious” reform of the current autonomous financing model, which they consider to be “neither transparent, equitable, nor efficient” and harms communities like Catalonia. This is expressed in a joint statement by the 13 Chambers of Commerce, Foment, Pimec, FemCAT, the College of Economists of Catalonia, the RACC, Barcelona Global and the Cercle d’Economia.
The entire economic fabric proposes three ways to correct the deficiencies they observe and seek a model that guarantees “the economic progress and social well-being” of many autonomies and Catalonia in particular. These would be a “deep” reform of the current system, a fiscal pact or the establishment of a “federal” system. The claim occurs at a time when negotiations between the Catalan parties with the central government are limited to the amnesty. The events of the process and its derivatives have focused the conversation between ERC and JxCat and the PSOE, while the economic portfolio remains in the political background. The Catalan entities are now putting it on the table through an unprecedented joint action and asking the different parties for an agreement that allows reform of the financing system.
The signatories of the declaration consider that a federal model or a fiscal pact would ensure that the new financing system was “transparent and efficient.” “Accompanied by a solidarity mechanism, both systems would be beneficial for Catalonia and for the entire autonomous communities,” they say. Regarding the federal financing model, they point out that it would redefine the communities’ regulatory, management, collection and inspection capacity. “It is a model similar to that of the United States,” they defend, which would allow the State and the autonomous regions to share the same tax bases, at a time when some communities compete by lowering taxes to attract companies and fortunes, such as that of Madrid. In this way, the different administrations would have directly and within the same fiscal year “the income that corresponds to them.” As they explain, its implementation would only require a reform of the Lofca.
Regarding the fiscal pact, they emphasize that it would also allow progress towards a “more transparent” model, while ensuring “the financial sufficiency of Catalonia.” With it, the Generalitat would administer and collect all general taxes in the territory, and would assume regulatory power over them similar to that of the regional communities.
Both the fiscal pact and the federal system would have to be accompanied by a solidarity mechanism with the rest of the communities, they add. The reform of the current model, for its part, should be “deep and broad”, to ensure “financial autonomy and improve management and tax capacity.”
The businessmen warn in this sense that if financial autonomy is not resolved in a “definitive and clear” manner, “we will continue to be ensconced in the permanent and confusing debate on financial imbalances at the territorial level.” They believe that the current model subtracts resources from some communities in an “unfair and inefficient” way, in addition to causing polarization of society. Likewise, they advocate reforming the advance payment system, since in their opinion it limits the capacity for tax management.
They also remember that with the current model, Catalonia is the second community (excluding the Basque Country and Navarra) in GDP per capita, but it is in tenth place in resources received. If the difference in the cost of living is taken into account, Catalonia falls to number fourteen. For this reason, they believe that a territory like Catalonia, with a greater population density and economic potential, must receive “a volume of investments proportional and appropriate to its needs, and in line with the weight in terms of GDP in the economy as a whole. Spanish”. It is also necessary to guarantee – they continue – a greater execution than budgeted. Finally, they demand that the fiscal balances of all the autonomous communities with the state be made public.
