SPAIN AGAINST THE CATALONIA NATION -- Catalan News Agency - Catalonia will not tolerate the elimination of the Autonomous Communities' taxation powers
Catalan News Agency - Catalonia will not tolerate the elimination of the Autonomous Communities' taxation powers
Catalonia will not tolerate the elimination of the Autonomous Communities' taxation powers
CNA
Barcelona (ACN).- The Catalan Government
announced on Thursday that, if the Spanish Executive finally decides to
recentralise Catalonia's own taxes, they will take the issue to the
Constitutional Court. The Catalan Finance Minister, Andreu Mas-Colell,
stated that, if confirmed, "it would be a very provocative proposal" and
"would make totally transparent, if it is not already transparent by
now, the recentralising assault and the policy to dismantle the
[current] Autonomous Community model". On Thursday an expert committee
handed a long report to the Spanish Government suggesting 270 measures
to completely reform Spain's taxation system. The committee is chaired
by Manuel Lagares, Chair Professor at Madrid's Universidad de Alcalá de
Henares and former advisor to the People's Party (PP), and is formed by 8
other experts, almost all of them from Madrid's establishment. The
document points out that the Spanish Government should "order" all the
taxes, including those devolved to the Autonomous Communities. Regional
governments might continue having their own taxes but they will always
be "coordinated" by the Spanish Finance Ministry, which will set minimum
and maximum rates. In addition, the Spanish Ministry could even cancel
some taxation measures if it considers they go against market unity,
prioritising this concept over the regional government's autonomy,
recognised in the Spanish Constitution. Lagares emphasised that the
committee "always had in mind Spain's interest" while writing the
report.
The Spanish Finance Minister, Cristóbal Montoro, welcomed the
440-page document on Thursday afternoon and stated that the next
Government Cabinet meeting – scheduled for the next morning – will study
the proposal. "The ball is in the Government's court" stated Montoro.
He also explained that in the next few weeks, the Executive will prepare
its own proposal based on the recommendations of the experts’ report.
By the summer, the Fiscal Reform should be sent to the Spanish
Parliament, where the People's party holds an absolute majority, with
the objective of having it implemented and enforced from the 1st of January 2015.
The Autonomous Communities' new funding scheme will have to wait
After the Fiscal Reform is adopted, Montoro stated that it will be
the time to modify the current inter-territorial funding scheme, which
transfers money among territories and also funds the Autonomous
Community governments, including Catalonia's. The Catalan Government has
been asking for a revision of this scheme since 2012, in order to have a
new one ready by January 2014, when the current one expired. However,
back in 2012 and during 2013 the Spanish Government refused to
prioritise this reform, despite the loud claims from Catalonia and the
political tensions. Back then it stated they would only deal with this
reform in late 2014 or early 2015, which is what they will finally do.
In fact, the Government chaired by Mariano Rajoy is following its own
schedule and agenda, as if nothing was going on in Catalonia and using
the absolute majority it holds in the Spanish Parliament.
Catalan society has been claiming for greater fiscal autonomy
A wide majority of the Catalan society, which according to polls
represents between 75% and 80% of the population, has been claiming for
greater fiscal powers for the last few years. A Fiscal Agreement, granting the Catalan Government greater fiscal powers was agreed upon between Catalan parties in mid-2012
and proposed to the Spanish Prime Minister Mariano Rajoy in September
2012, just after the massive 1.5 million strong demonstration in
Barcelona asking for Catalonia's independence from Spain.
Back then, Rajoy rejected to even discuss the proposal and start negotiations to modify Catalonia's fiscal relation with the rest of Spain.
Furthermore, the Spanish Government stated that Catalonia will never
have a fiscal agreement as the Basque Country and Navarra have had for
the last 3 decades, and that Catalan would continue being part of the
general funding scheme. On top of this, such a scheme would only be
modified in late 2014 or 2015, meaning that Catalan claims should wait
at least 2 more years. It seems that the Spanish Government is sticking
to its timing, but goes in the opposite direction of Catalan society's
claims, since it aims to recentralise fiscal powers instead of granting
Catalonia greater fiscal autonomy.
The Catalan Government will not tolerate a fiscal recentralisation
On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, reacted
to the fiscal recentralisation measures. Mas-Colell, who has been
working as Economics Professor in Berkley and Harvard for more than two
decades, stated that if the Spanish Government eliminates Catalan taxes
or recentralised powers this "would be an extremely aggressive measure".
"It would be a very provocative proposal; a proposal that would make
totally transparent – if it is not already transparent by now – the
recentralising assault and the policy to dismantle the [current]
Autonomous Community model", he stated. Therefore, in such a scenario,
"obviously we will defend ourselves in order to keep the powers to
create our own taxes and have our own regulation capacity, which are
already very limited but, conceptually speaking, they are an essential
part of any reasonable autonomy", he said. Mas-Colell announced that the
defence will be taking the reform to the Constitutional Court, among
other actions.
More on
Montoro (left) receiving the report from Lagares (right) on Thursday (by ACN)
