Col·lectiu Emma - Explaining Catalonia

Saturday, 31 december 2011 | New York Times

English

A Public Reply to the New York Times (IV)

Sirs,

One key point that is overlooked in your otherwise informative article on Spain's economic difficulties (As Spain Acts to Cut Deficit, Regional Debts Add to Woe, December 30, 2011) is that Spain is not a federal State. Under the country's fiscal arrangement taxes are collected by the central government, which will keep part of the proceeds for itself and distribute the rest among the regions to pay for the services that have been devolved. There is no correspondence between what the regions get to spend and the wealth they have generated.

For the last year Catalonia, one of the most productive and most heavily taxed communities, has been undergoing painful cuts in services. And yet, the share of tax money that it contributes to the State and never comes back is estimated today at a staggering 8-9 per cent of its annual GDP. If Catalonia could use even part of those funds to finance essential services for its own population, it would have no deficit and no debt, and could even afford one or two extravagant schemes like those that other regions -and the central government itself- can enjoy as long as they are paid for with somebody else's money. Catalans would not mind a serious revision of the regional setup, but only if it envisages fiscal responsibility on the recipients' part, better control over their own money by those who have earned it and more transparent procedures by the central government.


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Col·lectiu Emma - Explaining Catalonia

Col·lectiu Emma is a network of Catalans and non-Catalans living in different countries who have made it their job to track and review news reports about Catalonia in the international media. Our goal is to ensure that the world's public opinion gets a fair picture of the country's reality today and in history.

We aim to be recognized as a trustworthy source of information and ideas about Catalonia from a Catalan point of view.
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Col·lectiu Emma - Explaining Catalonia