Basque Country: the wealthiest region in Spain?

[The Lawspeaker]

https://www.youtube.com/watch?v=Cz5ZgLgJG_0

Spain isn’t exactly a role model as far as economics is concerned. However, there’s a region that doesn’t all in this category: we’re talking about the Basque Country, also known as Euskadi. Along with Navarra, these are two of the richest and most prosperous regions in the entire country. We could say that these two regions are something like a small Germany within Spain, with an entirely different political system to the rest of the country and a business sector more typical of Northern than Southern Europe. This area has a fiscal system completely different from the rest of Spain and enjoys a great autonomy and decentralization. Why are the Basque Country and Navarre richer than the rest of Spain? Why do we say that they have a different political system to the rest of the country? In this video, we will answer all this questions.

[Tietar]

no, it is the second region, the richest region in gross and per capita is Madrid

it's the second wealthiest region because they don't pay, only receive

[Gallop]

A privilege model

Basque Country and Navarra enjoy twice as many resources by the regional regime

The financing in the Basque Country reaches 4,292 euros per capita and the average barely exceeds 2,000 euros
Foral communities can spend more on education, health and social services than the rest

"The concert is not played." This was the resounding reaction of the Basque Country's lehendakari, Íñigo Urkullu, to the voices that defend that the regional regime is a privilege that should be reviewed. The national directorates of PP and PSOE have also closed ranks in defense of a model that has been criticized in a report by nine autonomous communities (Asturias, Balearic Islands, Castilla-La Mancha, Valencia, Extremadura and Aragon, Castilla y León and Murcia and Cantabria).

The figures reflect that the concert or economic agreement that governs the Basque Country and Navarra is especially beneficial. The latest official data from the Ministry of Finance show that per capita financing in the Basque Country reached 4,292 euros in 2012 to homogeneous powers and the same fiscal effort in 2012. In the case of Navarra, resources totaled 3,677 euros. They are much higher than the average of 2,049 euros of financing per capita of the autonomies of common regime. The worst-funded community is Valencia, which has 1,805 euros, 60% less than the Basque Country.

When the tax rates and tax regulations of each community are taken into account, the distance in per capita financing between the regional regions and the rest is shortened. This is so because the Basque Country and Navarra have room to impose a fiscal pressure much lower than the rest. Thus, they enjoy more income and, at the same time, lower tax rates (see the first graph).

The economic concert has two aspects: it allows the regional regions to collect all taxes and offers them autonomy when configuring their tax system with the exception of VAT. Part of the money raised by the regional estates is transferred to the Central Administration to cover the powers not assumed as defense or foreign spending, among others. There is also a minimum contribution to the inter-territorial compensation fund. The money that the Basque Country pays to the State is called a quota and, in the case of Navarre, is called a contribution.

The researcher and director of Fedea, Ángel de la Fuente, points out that the formula for calculating the Basque quota or Navarre contribution is very advantageous for both communities and "represents a flagrant violation of the constitutional principle of equality." This was defended in a report published in 2012, in which he warned of the inconsistency of the second and third community with the highest per capita income registering a positive fiscal balance with respect to the Central Administration. This means that "both communities are being subsidized by territories that on average are poorer."

In his opinion, the economic concert is not in itself a privilege, but its current operation is. De la Fuente estimates that if the quota were calculated correctly, the Basque Country would have 4,500 million less, which would be in the hands of the common fund. The practically non-existent contribution to inter-territorial solidarity, the downward calculation of the cost of state powers not assumed by the Basque Country and the formula to territorialize VAT revenues are the elements that explain that the Basque Country enjoys greater resources. In fact, by income, the foral communities should be net contributors to the system as in the case of Catalonia or Madrid.

The defenders of the concert argue that the regional model implies that the Basque Country and Navarra assume greater risks because they are obliged to pay a quota or contribution regardless of the evolution of their income. The vice-secretary of the Popular Party, Javier Maroto, said that both communities must “take the chestnuts out of the fire” when the economic situation is negative and cannot request additional financing from the State.

However, Professor of Public Finance Ignacio Zubiri argues in a study that precisely the regional system has offered advantages to overcome the economic crisis. He defends that the fall in revenue has been lower than in the rest of the communities and, in contrast, the quota to be paid to the State has been reduced. In addition, the successive VAT increases approved by the former and the current Government have swelled the regional coffers and residents in both communities have not suffered the tax increase in personal income tax that came into force in 2012. In their study An analysis of the regional system of the autonomous community of the Basque Country, included in a book published by Funcas, Zubiri points out that the particular financing regime of the Basque Country and Navarra explains that both communities have better social services. The expenditure per student in the Basque Country or reaches 7,229 euros compared to 4,995 euros on average. He also leads the per capita disbursement in health and social services.

THE DIFFERENCES BETWEEN THE COMMON AND FORAL REGIME
In the Spain of the autonomies two financing models coexist. The regional one, in force in the Basque Country and Navarra, and the common one, which applies to the rest of the communities, although with different characteristics in the case of the Canary Islands. These are the characteristics and differences of both models:

Why does the Basque Country and Navarra have a different financing system?

The Basque Country and Navarra have maintained a particular financing model that has been justified for historical reasons. The economic concert dates back to 1878, when it was established that the three Basque provinces, until then exempt, will contribute to the common fund. The concert was held even during the Franco regime in the province of Álava and Navarra. The Constitution contemplates in its first additional provision the respect and protection of “the historical rights of the territorial territories”.

How is the economic concert and the common financing model different?

In the Basque Country and Navarra, taxes are collected in full by the provincial councils. Subsequently, the communities pay a quota or contribution to the State to cover powers of the Central Administration and expenses of common institutions such as Congress or the Crown.

In the communities of common regime, the Central Administration enters most of the taxes and then transfers part to the autonomies. There are taxes that are directly collected by the common regime communities, but their importance is less.

Another difference is autonomy. With the exception of VAT, the Basque Country and Navarra have the competence to set their own fiscal model. On the other hand, legislative capacity in common regime communities is more limited.

Why is it said that the economic concert is a privilege?

The economic concert should not necessarily be a privilege, but in practice it is because its operation allows the financing per inhabitant of the Basque Country and Navarra to double the rest.

How is the contribution or quota made by the foral communities calculated?

Analysts such as Ángel de la Fuente or Ignacio Zubiri agree that the quota calculation formula is very opaque. In the case of the Basque Country, an imputation rate of 6.24% is applied to the estimate of the State's expenditure on competences borne by the Central Administration. However, there is opacity when determining how much the expense on which the allocation rate is applied is. De la Fuente says that the Basque Country contributes 4.5 billion less than it should.

Do the Basque Country and Navarre contribute to inter-territorial solidarity?

They collaborate through the inter-territorial compensation fund, however, their contribution to redistribution is minimal compared to compared to Madrid or Catalonia. In fact, the regional regions should register their fiscal deficit with their income level (be net contributors to the system). Instead, they enjoy surpluses.

Is the foral model exportable to other communities?

A system such as the economic concert would benefit rich communities like Madrid or Catalonia, however, it would imply a loss of resources for the common fund and the rest of the communities that are hardly acceptable.

https://cincodias.elpais.com/cincodias/2015/10/12/economia/1444666565_966308.html

[brennus dux gallorum]

Ironically it has always been the most communist friendly region in the country

[Jana]

no, it is the second region, the richest region in gross and per capita is Madrid

it's the second wealthiest region because they don't pay, only receive

Hard to believe since Basqua country is among most industrialised regions in Spain. And Madrid is not a region. Capitals usually have highest GDP per capita everywhere.

[Gallop]

Basque industry, the permanent shipwreck

The Basque industry has gone from 423,000 jobs in 1975 to 194,000 today. A loss of 54% that continues to drown the sector with neoliberal policies. Fagor, Xey, CEL and La Naval are recent examples of mismanagement of the Government and the Basque councils.

https://www.elsaltodiario.com/uploads/fotos/r1500/f273e86c/DSC_3343.jpg?v=63720819133

Euskal Herria is sometimes considered a reference in relation to the way of articulating industrial policy, which is supposed to concern the intervention of regional and regional governments in supporting industrial activities. But the industrial crisis of the last four decades is an unequivocal process, and some recent cases of management by the Basque Government show that inaction and employer's defense are the norm of action.

https://www.elsaltodiario.com/industria/industria-vasca-naufragio-permanente

[Gallop]

https://datosmacro.expansion.com/ccaa

CCAA Autonomous communities Fecha Tipo mínimo Tipo máximo
Andalucía [+] 2018 21,5% 48,0%
Aragón [+] 2018 19,5% 47,5%
Asturias [+] 2018 19,5% 48,0%
Cantabria [+] 2018 19,0% 48,0%
Ceuta [+] 2018 19,0% 45,0%
Castilla y León [+] 2018 19,0% 44,0%
Castilla La Mancha [+] 2018 19,0% 45,0%
Canarias [+] 2018 19,0% 46,5%
Cataluña [+] 2018 21,5% 48,0%
Extremadura [+] 2018 20,0% 47,5%
Galicia [+] 2018 19,0% 45,0%
Islas Baleares [+] 2018 19,0% 47,5%
Murcia [+] 2018 19,5% 46,0%
Madrid [+] 2018 19,0% 43,5%
Melilla [+] 2018 19,0% 45,0%
Navarra [+] 2018 13,0% 52,0%
La Rioja [+] 2018 19,0% 48,0%
Comunidad Valenciana [+] 2016 21,4% 46,0%
Income taxes for workers

Quarterly Debt: Comparative CCAA III Trim 2019
CCAA Deuda total (M.€) Debt (%PIB) Deuda Per Cápita Deuda con el Estado (M.€)
Andalucía [+] 35.770 21,70% 4.245€ 26.931
Aragón [+] 8.425 22,20% 6.379€ 4.158
Asturias [+] 4.906 20,50% 4.799€ 1.090
Cantabria [+] 3.185 22,50% 5.475€ 2.705
Castilla y León [+] 12.698 21,40% 5.273€ 3.801
Castilla La Mancha [+] 15.059 35,50% 7.398€ 10.955
Canarias [+] 6.622 14,10% 3.000€ 4.937
Cataluña [+] 78.600 33,50% 10.390€ 59.212
Extremadura [+] 4.928 24,00% 4.626€ 2.775
Galicia [+] 11.426 17,80% 4.231€ 6.180
Islas Baleares [+] 9.207 27,60% 7.752€ 6.376
Murcia [+] 9.886 30,60% 6.645€ 8.330
Madrid [+] 33.692 14,20% 5.074€ 1.432
Navarra [+] 3.370 16,20% 5.184€ 0
País Vasco [+] 10.707 14,50% 4.916€ 0
La Rioja [+] 1.720 19,70% 5.484€ 538
Comunidad Valenciana [+] 47.877 42,00% 9.625€ 40.660
Total 298.077 180.081
Debt of the autonomous communities


CCAA Exportaciones interregionales Exportaciones interregionales %PIB Exportaciones Exportaciones %PIB Var.
Andalucía [+] 25.577,40M.€ 17,78% 30.913,3 M.€ 19,88% 1,81
Aragón [+] 14.046,20M.€ 41,69% 12.019,8 M.€ 33,69% 1,85
Asturias [+] 5.938,90M.€ 27,91% 4.175,6 M.€ 18,44% 2,26
Cantabria [+] 3.945,76M.€ 32,27% 2.319,2 M.€ 17,54% -0,87
Castilla y León [+] 20.248,08M.€ 37,80% 15.597,6 M.€ 27,78% -2,04
Castilla La Mancha [+] 15.765,67M.€ 42,66% 7.056,1 M.€ 17,68% 0,91
Canarias [+] 3.235,45M.€ 7,91% 2.533,5 M.€ 5,73% 0,82
Cataluña [+] 38.141,49M.€ 18,68% 70.828,7 M.€ 31,99% 1,36
Extremadura [+] 3.922,21M.€ 22,71% 1.919,0 M.€ 9,84% 0,71
Galicia [+] 12.481,33M.€ 22,36% 21.676,3 M.€ 35,78% 1,50
Islas Baleares [+] 528,79M.€ 1,94% 1.853,6 M.€ 5,90% 1,99
Murcia [+] 9.779,98M.€ 35,53% 10.456,7 M.€ 34,17% 3,44
Madrid [+] 29.094,66M.€ 14,33% 30.510,3 M.€ 13,78% 0,19
Navarra [+] 7.607,12M.€ 41,15% 8.073,7 M.€ 41,29% -3,72
País Vasco [+] 14.119,94M.€ 21,22% 23.860,4 M.€ 34,22% 2,02
La Rioja [+] 4.089,88M.€ 51,84% 1.848,2 M.€ 22,30% 1,03
Comunidad Valenciana [+] 19.367,03M.€ 19,11% 29.371,0 M.€ 27,26% -0,51

[Gallop]

It can be said that there are some autonomous regions in Spain where their politicians are centered and revolve around identity issues to maintain their gear and permanence in power and the results of their neglect and abandonment are evident. If they don't know how to run a region, how would they run a country?


Iñigo Urkullu's 'Basque oasis' is filled with garbage

Two workers remain buried a month after the tragedy of the Zaldibar landfill that cornered the 'lehendakari'

https://phantom-elmundo.unidadeditorial.es/1b5f7ca66aa9861aacedfbf4a9518dc0/crop/0x0/2044x1363/resize/473/f/webp/assets/multimedia/imagenes/2020/03/04/15833519907780.jpg

A month after that fateful February 6, the two workers remain buried between the garbage and the Basque Government does not know what to do with waste in an eminently industrial community amid the complaints of employers, while the irregularities that accumulated Verter Recycling, the company that owns the landfill, which might have prevented the disaster.
https://www.elmundo.es/pais-vasco/2020/03/05/5e5fff11fdddff1d558b45e9.html


https://www.youtube.com/watch?v=vYnPnrVsOlw
Environmental crisis in the Basque Country after the collapse of a landfill with polluting waste

https://elpais.com/politica/imagenes/2020/02/06/actualidad/1581009458_892118_1581014439_noticia_fotograma.jpg
Garbage even cuts roads

Result of a policy based solely on identity issues

[Cristiano viejo]

Ironically it has always been the most communist friendly region in the country
Not really. Asturias, Andalusia and Catalonia always were the most "communist" regions here.


Hard to believe since Basqua country is among most industrialised regions in Spain.
Thanks Franco.


And Madrid is not a region. Capitals usually have highest GDP per capita everywhere.
Madrid IS a region, dear.

Lately Madrid is receiving THOUSANDS of multicompanies that are leaving Catalonia for the separatism problem.

Tell that of the capital cities to Roma, Berlin, Washington or Brasilia :rolleyes:


fg
First, Spanish economy is among the most prosperous of the world. Of course not in the level of let say Netherlands, but saying Spain is not a role model of economy is far of the truth.

Second, Madrid is the wealthiest.

Third, you should know the history of Spain to know why small regions as Vascongadas and specially Navarra are so prosperous. Both have special economic systems which come from the middle ages, the so called fueros, that benefit them greatly
https://en.wikipedia.org/wiki/Fuero#Basque_and_Pyrenean_fueros

[Gallop]

Nor is there a re-distribution of benefits in Spain, perhaps because of this, Madrid has taken advantage of the rest of the regions.

[Tietar]

First, Spanish economy is among the most prosperous of the world. Of course not in the level of let say Netherlands, but saying Spain is not a role model of economy is far of the truth.

Korea has the same level of wealth, but according to this garbage content channel they are rich and an economic model, hahaha


https://www.youtube.com/watch?v=6Ro6FlHe5eQ

[Txiletarra]

Bai.

[Suinthila]

Third, you should know the history of Spain to know why small regions as Vascongadas and specially Navarra are so prosperous. Both have special economic systems which come from the middle ages, the so called fueros, that benefit them greatly
https://en.wikipedia.org/wiki/Fuero#Basque_and_Pyrenean_fueros


Keep dreaming, pucelano.

People aren't willing to make the effort to get a single knowledge about any thing. They'd rather get that knowledge passively through the propaganda, in this case the nationalist basque propaganda.

[Gredos]

Korea has the same level of wealth, but according to this garbage content channel they are rich and an economic model, hahaha


https://www.youtube.com/watch?v=6Ro6FlHe5eQ


hahaha, yes, an economic model for assholes

https://edition.cnn.com/2018/11/04/asia/korea-working-hours-intl/index.html



look at this visualpolitik

quality of life index rank: Spain 15, South Korea 38

https://www.numbeo.com/quality-of-life/rankings_by_country.jsp?title=2020




and now look at this

https://i.pinimg.com/originals/68/b7/63/68b763730fc11b6b1180ae7ebef0a5de.gif