Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Why? well...two things. First issue is whether the Catalan system of taxes should be different than other regions and nations in Spain (never as independent as in the basque country), or, on the other hand, the system should apply for all the regions and areas in Spain... Deciding which things would be general and which particular is really a tough game since PSOE also controls other importnat regions and nations in Spain which are sources of a great deal of their votes and in need of money...so they have to be very careful not to affect economically these regions.

It is saddening that this regional let's-keep-our-taxes-for-ourselves fight is fought by leftists in Catalonia. This goes along with the theme of a Social Democratism-critical diary I promised to Colman to write...

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Sun Jan 8th, 2006 at 01:27:21 PM EST
[ Parent ]
There are two main reasons why a left-wing government would act as you say.

I guess one is sad, let's say that it is about power of course and asking for as much money as the ratio of the GDP produced by Catalonia minus a direct sum uniquely  dedicated to solidarity, goes with the idea of getting more power and votes.

The second one makes more sense. It is about the resources invested in catalonia on Social Security-Medicair and on infraestructures. The reason is simple, poor people in Catalonia recieve much more less money per person than an poor citizen in other parts of Spain. Why that if catalonia is so rich?  Simple, the central government has reduced the investment in catalonia. So, if Catalonia represents roughly 17% of the population, only 15% of the governments money in this two main issues is spent in Catalonia (Catalonia represent roughly 20% of the economy). You may say that this is because there is need extra money for the poor regions.. but the key point of the left-wing in catalonia is that this is false!! And they are right on this. Actually the city of Madrid receives their fair share of investments according to populations and other rich areas too. It may seem incredible but the poor neighbourhoods of the community of MAdrid (Surroudning the city of Madrid) and the poor areas surrounding Barcelona pay this extra price.

The solution is obvious, asking for a huge investements in those two areas according to population. Catalonia gets more money on their taxes which, ideally, should go to these areas (not necessarily true...).Catalonia would "give" the extra 2-3 point in GDP to help other communities (not a direct sum which would diminish over time as now proposed). The community of Madrid could do the same.

But of course, if you are bargaining you must ask for the moon so that you settle on the above scenario.This is why the statue for catalonia also asks to receive in the future the taxes according to GDP minus a direct contribution on solidarity. This would mean that, if the poor regions of Spain had to receive the same amount of money, the city of Madrid and Basque Country and Navarra would have to lose their present privileges. This is plainly impossible...these privileges are written in the Consititution of Spain

And let us always remember who are the main losers on all this, the poor cities and neighboorhoods in Madrid and Barcelona. The PSOE government has tried to solve the problem on Social-Security but these two badly needed areas (Madrid and Barcelona surroundings) were to receive the investements the poor deserves... where would the money come from?
From the privilege situation of Madrid-city, basque Country and Navarra or by reducing the present spenditures in other areas and regions of Spain that are not that rich....? This is the incredible contradiction of having the most rich areas side by side with the poorest... Surprisingly enough and more contradictory even, if these two poor areas were allowed to direct the production of their taxes on themselves they would be better-off because....just beside the poor concentrations there are technological and industrial areas...just a few kilometers away but years of light away in economic terms.

I could give you examples of el Prat del Llobregat (poor town with really bad services and left-wing workers) side by side with a mega-technological-logistic center. And I could even think about some examples of Madrid.. Migeru can give the answer for me but "El Pozo del tio Ramundo" (the poorest of the poorest areas in Madrid") is not that far away kilometers away from the new Soth(-eastern?) technological-scientific park on aero-spatial and biotechnology...and I do not go on with other cities around Madrid as Getafe, Leganes...

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Sun Jan 8th, 2006 at 03:57:09 PM EST
[ Parent ]
Thanks for giving the deeper picture! But I have one quibble:

The second one makes more sense. It is about the resources invested in catalonia on Social Security-Medicair and on infraestructures.

You convinced me on the first, but I think infrastructures is at least a more complex issue. Per capita GDP (or average earnings) doesn't express the as-is level of the infrastructure - and even if Catalonia has regions as poor or poorer as Extramadura, it has a better transport network or (I'm guessing) canalisation.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Mon Jan 9th, 2006 at 07:11:26 AM EST
[ Parent ]
Dead on. Infraestructure is more complex.
Investement in infraestructure in Catalonia is smaller than the ratio of population. And not all infraestructures are social infraestrucuture.

Can you imagine the mess in the number on how to count roads, airports and so on and on and on? In theory , this should be ivnested mainly by the central government now... so who would take care  from now on? A part will help poor areas but most of it it is linked to the comparison wiht the level of infraestructures on airports, public transport and roads in the other big center: Madrid. How much money in the future and compared with what others areas of Spain?

So, yes you are right, the topic of infraestructure is such a mess that I doubt I/they can convince anybody. Even people working on it do not have the things clear (every six months the catalan govermnemnt asks the central governemnt to perform and release a study on the subject so to have some numbers....no way to get it). In any case the governemnt in catalonia should have a level of investment according to population (3 points less than the GDP) in infraestructure, I do not care where it comes from.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Mon Jan 9th, 2006 at 10:31:56 AM EST
[ Parent ]
I was possibly not clear on this the first time: I think the existing infrastructure of Catalonia is more developed than that of other regions, thus it deserves less investment than those other regions, per capita. With your additions to just how complex the infrastructure issue is, I suggest on some fields this could be managed: say, there is reliable statistics on social infrastructure like canalisation, you could make investment in that field an inverse function of the ratio of already canalised homes. (Do you know anything about how social infrastructure spending, as opposed to transport stuff, is divided up now?)

On the other hand, say, metro stations or bus routes into poor suburbs could be financed in a population+income-based way that ends up giving more to Madrid and Barcelona than other areas.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Mon Jan 9th, 2006 at 11:43:34 AM EST
[ Parent ]

Display:

Occasional Series