The distribution of welfare cash | Economy | EUROtoday

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In the distribution of duties, it’s as much as the autonomous communities to offer necessary providers of the welfare state (well being, schooling, social providers and housing). In 4 many years the constitutional improvement has been extraordinary and we now have gone from a completely centralist State to a federal mannequin during which regional governments have 24% of the revenue, in comparison with 26% within the United States and 40% in Germany. Instead of autonomous financing it will be higher to speak about financing the welfare state.

The transformation has not been a mattress of roses. Between 1980 and 2009, six financing fashions have been agreed upon, however since 2014 their renewal has not been doable, in clear non-compliance with the regulation. The consequence has been an absence of assets, which is likely one of the causes of the over-indebtedness of the autonomies.

These monetary deficiencies fueled a lot of the “disaffection” of Catalonia, as President Montilla identified on the time. Under the PP governments the disaster worsened with a robust improve within the independence motion and worsened with the imprisonment and exile of the independence leaders. The local weather skilled a considerable enchancment with the pardons, amnesties and dialogue of the coalition authorities.

It is on this context that we should place the proposal of Unique financing raised by the Generalitat of Catalonia, chaired by Pere Aragonés (Esquerra Republicana de Catalunya) who has chosen to dialogue and govern. The initiative is proposed at a time of stagnation in regional improvement. The lack of renewal has meant 111,727 million euros much less for the autonomies between 2012 and 2022.

The proposal of the Catalan Generalitat represents a considerable change. Catalonia will acquire and legislate all taxes and in flip will make a double contribution to the State: one, to compensate for the providers that the State gives in Catalonia and two, by way of a territorial rebalancing fund, it is going to contribute to financing the providers of the communities. with much less fiscal capability.

What is new is just not the figures however the standards: “It does not have to entail any privilege for Catalonia” and be “compatible with the Statute, the Spanish Constitution and the right to the European Union.” The targets are to “increase tax autonomy and fiscal responsibility, financial sufficiency and transparency.” It highlights the protection of the ideas of loyalty and solidarity, a phrase that seems 40 occasions, and “the prohibition of economic and social privileges and the guarantee of equal rights and duties of all Spaniards.”

The effort have to be acknowledged, however for consistency the Minister of Economy Natalia Mas ought to defend the proposal within the Fiscal and Financial Policy Council.

Better to speak about values ​​than about fiscal balances (how a lot every group contributes and the way a lot it receives), which have to be desacralized. The variations between the totally different calculations of the scales are huge and don’t serve to approximate positions. With the figures forward, Europe would by no means have been constructed. It is extra helpful to review constructive worldwide experiences and admit that good outcomes will not be achieved in a single act however after successive agreements.

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