The Economic, Political and Social Reasons for Founding a Catalan State

88
The economic, political and social reasons for founding a Catalan State

description

Complete study on the broad reasons for a new Catalan state in Europe.Author: Fundació Catalunya Estat.July 2012.

Transcript of The Economic, Political and Social Reasons for Founding a Catalan State

Page 1: The Economic, Political and Social Reasons for Founding a Catalan State

The economic, political

and social reasons for

founding a Catalan State

Page 2: The Economic, Political and Social Reasons for Founding a Catalan State

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Index presentation

Purpose and Structure of the Foundation

Catalan Fiscal Deficit

Catalan Social Security Fiscal Deficit

Constraints to Development

Results

Is it convenient for Catalonia to be part of Spain?

Catalan State

Bibliography

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Purpose and Structure

of the Foundation

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Structure of the Foundation

Territorial

Discourse

Direct action campaigns in the media: press and

radio, books, videos ...

Forum Influen. people

Sponsors

Associates

Friends

Image &

Communication Institutional

Relations

Catalan State

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Organizational chart of Catalonia State Foundation

EXECUTIVE

BOARD

Area

DISCOURSE “The economic, political and

social reasons, for founding

a Catalan State”

Area

IMAGE & COMUNICATION Advertising campaigns, media

and public relations

Area

INSTITUTIONAL Relations with Institutions,

Official Bodies and Parties

INFLUENTIAL PEOPLE President

Relevant persons / Patrons

AREA MANAGERS Sponsors or Associate representatives

Territorial actions

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Catalan Fiscal Deficit

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Catalan Fiscal Deficit

What is the fiscal balance?

Public expenditure done in a territory – taxes generated in this

territory = Fiscal Balance

If is + Fiscal surplus If is – Fiscal deficit

Calculation Method: Cash flow

Spending is attributed to the territory where it is done.

(The activity of public sector benefits a territory)

(Source: Elisenda Paluzie. CEC - Espoli del Països Catalans 22.10.2008)

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0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Catalan fiscal deficit in million euros

8

250 billion euros in 25 years

18,5 billion euros

(2011)

(Source: Resultat de la balança fiscal de Catalunya amb el sector públic central 2006-2009 Gencat, març de 2012

and Ministerio de Economia y Hacienda, Instituto de Estudios Fiscales, Madrid 15.07.2008)

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Catalan fiscal deficit estimated 2011

Catalan GDP of 210bn euros

Fiscal deficit of 8.8% of GDP

A population of 7,4 million inhabitants

Per person are:

2,500 euros / year

(Source: Estimació Balances Fiscals CCAA Estat espanyol 1995-2005, Fundació Josep Irla)

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The perversion of the current model

(Source: AVUI - Política 23.12.2008)

Catalonia drops

8 positions,

from 3r to 11th

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And the principle of fiscal ranking?

(Source: AVUI - Política 1.07.2009 and 14.07.2009)

Catalonia

should be in

3rd position

-------

We have lost a

good criteria

Article 206.5 of the Statute says: "The State shall ensure that the application of leveling mechanisms do not alter in any position of Catalonia in the order of “income per capita” across regions before leveling”.

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Comparison with the special Basque charter

(Source: AVUI - Política 22.07.2009)

Catalonia suffered a

negative return of

€14,5bn (2006)

Catalonia (2006)

2,143 euros per inhabitant

Basque Country (2006)

5,833 euros per inhabitant

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Fiscal balances in Germany

(Source: El Periódico, Política 20.04.2009 - AVUI, Món i Política 16.05.2010

Directe.cat Internacional 16.10.2010 i Presència Política 25.01.2011)

0

20

40

60

80

100

120

140

Hessen

Baden-

Würt

tem

berg

Bayern

Ham

burg

Nord

rhein

-

Westf

ale

n

Nie

ders

achsen

Schle

sw

ig-

Hols

tein

Rhein

land-

Pfa

lz

Saarland

Bra

ndenburg

Sachsen-

Anhalt

Sachsen

Thüringen

Meckle

nburg

-

Vorp

om

mern

Bre

men

Berlin

Índex

Index of founds before leveling index of founds after leveling

The Baviera State, the main taxpayer,

provided €3,5bn (2010)

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Fiscal balances in Spain

(Source: Generalitat de Catalunya, abril del 2009)

Catalonia loses 8 positions, it’s that fair?

This is not correct

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Catalonia, the most fiscally exploited country

in the world

USA: 2.5% of GDP

Canada: 2% of GDP

Australia: 2% of GDP

Catalonia: 8.8% of GDP

Fiscal transfer allowed

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What could we do with all this money?

18,5bn euros 50 million euros a day

The new terminal of BCN airport

Capacity for 30 million of passengers.

Will generate 3,000 direct jobs and 37,000

indirect jobs. Cost of €1,2bn.

Paid off in 25 days.

Roads

Cost of the road Lleida-Girona: €0,4bn.

Covert into a four-line highway: €0,7bn.

The equivalent of 14 days of fiscal plunder.

(Source: La Vanguardia14.06.2009 i La Generalitat de Catalunya 5.01.2009)

(Source: Observatori del Finançament de Catalunya)

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What could we do with all this money?

18,5bn euros 50 million euros a day

Hospitals

The new Hospital in Mollet del Vallès with

160 beds, it has a cost of 61 million euros.

Nearly a Hospital every day.

Educational centers

To built a new school has an average cost of

between 3,5 and 4 million euros.

It will be possible to built 12 schools every day.

(Source: AVUI Política 20.07.2009 )

(Source: Dossier de premsa. Hospital de Mollet

Generalitat de Catalunya 31.07.2010)

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What could we do with all this money?

18,5bn euros 50 million euros a day

Centre for Biomedical Research Esther Koplowitz

The new building of the Hospital Clinic in Barcelona has 14,506 m2 housing 400 medical researchers. Cost: 60,7 million euros. Almost every day a research center.

Local Heath Center (CAP) The new CAP of Borges Blanques will attend to 17,000 users. Surface 2,213 m2 two-storey Cost: 5 million euros. Every day 10 local health centers can be built.

(Source: AVUI Societat 4.10.2010)

(Source: Gencat - Departament de salut

Notes de premsa 1.10.2010)

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Simulation of an annual budget

Catalan fiscal deficit estimated on 18,5 billion euros

Extra Catalan Budget 2012 Amount million €

Qty Total

Direct contribution to the European Union 1,000 1 1,000

Embassies and consulates, like Ireland 200 1 200

Hospitals, like the one from Mollet del Vallés with 160 beds 60 5 300

Convert into a four-line highway the road Lleida to Girona 700 1 700

Help the small-medium size companies and start-ups 2,400 1 2,400

Freight-line connecting ports Tarragona-Barcelona to France 1,200 1 1,200

Research and Development (R&D) 2,000 1 2,000

Advanced technological centers 200 2 400

Change all pre-fabricated modules of catalan schools 2,000 1 2,000

Universitary campus for 7,000 students 130 2 260

Social housing programs 0,0036 400,000 1,440

Aged / handicapped welfare program (only 54,000 people) 0,0014 150,000 250

Pensioners, extra payment of 1,200 euros 0,001 1,5 1,800

University scholarships of 1,000 euros a month 0,010 200,000 2,000

Creation of a network of basketball courts 0,4 1,000 400

Emergency provisions 2,150

Total simulation, million of euros 18,500

And in 2013? and in 2014? and in 2015? ....

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And a catalan family?

2,500 x 4 persons = 10,000 euros each year

833 euros a month !!!

Help to pay the mortgage

Books for the school

New laptop

Kindergartens / Nanny

Increase the pension

To buy a new car

Savings...

(Source: Observatori del Finançament de Catalunya)

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Budget Generalitat de Catalunya 2012

37 billion euros

+ 18 fiscal deficit

-----------------------------

Total 55 billion euros

Increase of 50%

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Fiscal Deficit Compared

(Source: Entre l’Espanya i la paret. Xavier Roig 2003)

How should the Spanish people view the generosity of Catalonia that

has contributed Spanish GDP over 9% for more than twenty years?

FISCAL DEFICIT Amount

aprox.

Amount

updated

Total

inhabitants

Amount

person

year

% Income

personPeriod

Marshall Plan (USA)

1948-195113.300 M$ 97.000 M$ 147 M 164 $ 1,23% 4 years

German Reunification

1990-1999600.000 M$ 61 M 980 $ 3,75% 10 years

Fiscal Deficit Catalonia

versus Spain 2010 18.000 M€ 7,5 M 2.400 € 8,6% UNLIMITED

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Catalan Fiscal Deficit

Social Security System

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Plundering the Catalan pension system

Period 2004 – 2007

+ 90 billion euros 23.9% of all State, has been paid by Catalonia

- 76 billion euros 20.6% received by the Catalan pensioners

----------------------------------------------

- 13 billion euros

----------------------------------------------

(Source: Cercle d’Estudis Sobiranistes. Elisenda Paluzie 2009)

This is the ruin of Catalans

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Contributions to the Spanish pension reserve fund

(Source: Escanyar els pensionistes. Alfons López Tena. AVUI Diàleg 28.06.2009)

The Spanish, that

are 38,5 million

inhabitants,

only contribute

€4,5bn 7,1 million of

Catalans

contribute

€13bn

Period 2004 - 2007

We are the ones that finance pensions for the

Spanish, that they cannot sustain

Catalonia

74,4%

Spain

25,6%

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How our pensions could be improved?

With our own State we will spread the 13bn euros (2004-07):

1. Increasing general pensions by 25%

€ 175 per month x 14 payments = € 2,450 each year

2. Lower contributions from companies and workers by 14.7%

while maintaining current pension.

3. Foresee a reserve fund

to cover future pensions.

(Source: AVUI – Diàleg: Escanyar els pensionistes. Alfons López Tena 28.06.2009)

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Contributory pensions in Spain

(Source: Expansión - Economía y Política 6.07.2010)

Catalunya

74,4%

Pensioners:

● 25% receive less than

500€ a month.

● Another 50% between

600 and 800€ a month.

● Only 25% exceed

1,000€ monthly.

It does not take into

account the cost of living.

In Catalonia

pensions are too low

in relation to our

cost of living

Page 28: The Economic, Political and Social Reasons for Founding a Catalan State

Constraints to

development

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Investment level from Spanish State in Catalonia

(Source: EL TEMPS - L’espoli de l’espoli. Núm 1268 - 30.09.2008)

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The state does less than a half

the infrastructures that would be necessary

N-II, the motorway to nowhere.

A symbol of the Spanish national contempt for Catalonia.

This road is a national motorway through all Spain until it reaches Catalonia.

In 20 years the Spanish state has only been capable of turning 8 km of this road into highway in Girona.

(Source: EL PUNT AVUI – Política: El debat del Parlament 24.05.2012 i El Periódico - Gironès 4.10.2009)

In 2011 the State investment in infrastructures was less than a half of the 3,1 billion euros budgeted or to be exact, only 1,4 billion euros.

This figures make clear the flagrant plundering of the Catalan taxpayers by Spanish state.

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For the Spanish there is always money

Free Highway Silver Route

From Gijón to Sevilla the highway A-66 has 809 km. Finished in 2011, after 7 years of construction.

(Source: La Voz de Asturias. Noticias Asturias 7.08.2006 i 2.03.2009)

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Madrid: 600 km – Barcelona: 20 km (Free highways built by the Spanish Government between 1985– 2005)

(Source: Cercle d’Estudis Sobiranistes)

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What about the kindergartens?

The ones who come out winning are always the same.

(Source: OCU - Compra Maestra nº 346 març 2010)

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Our students in pre-fabricated units !!!

The 2011-12 school year began with a record of pre-fab units: 1,057 for 20,000 students. Solved with 2 billion euros.

The Community of Madrid has not a single one.

(Source: EL PUNT AVUI - Societat 8.09.2011)

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The scandal of the Catalan student grants

Spanish State refuses to transfer the responsibility for the student grant system, even though the Spanish Constitutional Court sentence in 2001, giving the Catalan Government, La Generalitat, the sole responsibility in this matter.

“The law is only the law when it suits them”. (Source: La Vanguardia – Opinión: La paciencia tiene un límite. Isabel García Pagan 5.01.2010)

Catalan Students, 17% of the whole Spanish state, only receive 8% of the scholarships.

Spanish State does not comply with the law.

(Source: Universitat: Les beques catalanes. Enric I. Canela 21.05.2009)

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170 million euros: fiscal deficit of 0,7% for the NGO

Catalonia has only received 120

of the 290 million of the income tax

that the Catalans have destined to

social ends during the last 5 years.

In spite of the sentences of the

Spanish Supreme Court and the

Spanish Constitutional Court, the

two main Spanish political parties,

PP and PSC-PSOE, refuse to

allow the Catalan government to

manage these subsidies.

Yet another robbery.

(Font: EL PUNT AVUI – Societat: Col·lectius 6.05.2012)

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Spanish Railway Infrastructure

Objective: make us unnecessary

(Source: Catalunya Acció. Juny 2007)

The stretch

Sagunto-Teruel-Zaragoza

has cost 1,3 billion euros

over the last four years

(Source: AVUI – Política: Ramon Tremosa 24.08.2009)

40% of GDP and 50% of exports

come from the Spanish territories

on the Mediterranean seaboard

Valencia

Cuenca

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Two freight lines and its price

Algeciras – Madrid – Irun – Lyon

Distance 2,200 km price for the transport of 1,000 tons: 94,000 euros.

Algeciras – Valencia – Barcelona – Lyon

Distance 1,700 km price for the transport of 1,000 tons: 70,000 euros.

(Source: La Vanguardia – Política: Salvador Enguix 25.10.2009)

Transport cost

(euro x 1,000 tons x km)

Road: 87,8 € - Ship: 22,5 €

Railway: 17,9 € (Source: El Periódico

Societat 19.11.2009)

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Europe gives priority to

the Mediterranean freight line

Despite Spanish government common resistance, the European Union has finally imposed economic sense and designated the Mediterranean freight line top priority.

(Source: EL PUNT AVUI – Catalunya: infraestructures 19.10.2011)

A pity: The double line between

Barcelona-Valencia is not completed.

The 61 km between Tarragona and

Vandellòs has been abandoned.

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The freight access

to the port of Barcelona

The lack of rail links strangles the country’s economic growth.

One of the priorities of the Generalitat of Catalonia is to ensure that the construction of the long-awaited road and rail links to the port of Barcelona, do not remain collecting dust on some Spanish government shelf sine die.

The port of Barcelona is finishing the new giant container terminal promoted by the leading world Chinese logistics company Hutchinson, witch will convert the port of Barcelona into the major logistic platform of Southern Europe at a cost of nearly 4bn euros.

For this reason, finishing the work to make the train to arrive to the port is absolutely indispensable. However, the decisions taken in the last few years regarding infrastructures by the Spanish government do not make us optimistic.

(Source: ARA – Tema del dia: Infraestructures pendents 5.03.2012)

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High-speed railway (AVE)

The ruin of Spain

The State has spent 50 billion euros in high-speed projects that will

not have enough travellers to pay for the maintenance of the lines.

A mammoth project, exceeded only by China.

Unsustainable. While the ratio of passengers per kilometre in Spain

is 2,8 passengers, in France it is 41,5.

Maintaining one kilometre of high speed track costs 100,000 euros a

year and 200,000 euros a year per kilometre of tunnel.

Meanwhile goods traffic is declining. Since the year 2000 the

percentage of rail freight traffic has fallen from 7% to 5%.

(Source: AVUI – Societat: Infraestructures 23.05.2010)

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I can’t believe it !!!

In the newspaper there is the look of surprise on the face of the

American Secretary of State for Transport, Ray LaHood, when he

was shown the map of the high speed Spanish railway network, to

which his response was:

You must be very rich, we cannot afford it

Time has shown that we are not so rich, we just tried to seem so.

(Source: La Vanguardia – La segona: El corredor mediterrani 8.09.2011)

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The never ending story

of the transfer of the local train network (Renfe)

The Spanish Transport Ministry has not transferred the physical infrastructure of the Catalan local railway network.

However the Catalan Government has received the transfer of the rather less exciting responsibilities for:

Time table, prices, information and cleaning.

(Source: EL PUNT - Punt de Vista: L’Encaix 3.01.2010 i La galeria 16.01.2010)

While this exciting transfer was being signed, the Spanish Railway Company (Renfe) informed that there would be an increase in ticket

prices of 6%, only applicable in Catalonia.

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Only one kilometer of truck laid in 20 years

Abandoned. The passengers train has been completely ignored by the Spanish state investments in Catalonia.

(Source: EL PUNT AVUI – Catalunya: El dèficit de la xarxa ferroviària de Catalunya 28.05.2012)

The stretch

of line

between

Vandellòs

and Castellò

is still single

track

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The railway network

The Spanish state following any economic logic, should prioritize the Mediterranean freight, but this would break with their own Spanish internal logic of “coffee for everybody” and the vision of the radial infrastructure with Madrid as the lynch-pin.

(Source: AVUI – Diàleg: Europa visita Catalunya 13.03.2011)

Spain has become a second class country because it

does not invest in infrastructures with cost-benefit criteria

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Barcelona airport

(Source: Cercle d’Estudis Sobiranistes, L’estat espanyol contra Catalunya: la prohibició d’ús dels aeroports

catalans en els Convenis Internacionals acordats per l’estat espanyol 19.02.2008)

The Spanish Airport Authorities signed agreements with all these

countries between 1954-1993 imposing the use of Madrid airport and

explicitly prohibiting the use of Barcelona airport for international flights

America Africa Asia EuropeBolivia, 1974 Ivory Coast, 1976 Korea, 1989 Croacia, 1997

Canada, 1988 Gabón, 1976 India, 1987 URSS, 1976

Costa Rica, 1979 Equatorial Guinea, 1971 Iran, 1996

El Salvador, 1997 Kenya, 1981 Iraq, 1980

Guatemala, 1971 Mali, 1990 Japan, 1980

México, 1978 Nigeria, 1975 Kuwait, 1979

Peru, 1954 Sierra Leone, 1976 Malysia, 1993

Dominican Rep, 1968 Pakistan, 1979

Uruguay, 1979 Siria, 1979

Chile, 1974 Thailand, 1979

USA, 1973 (Miami and San Juan de Puerto Rico) Compulsory use of Madrid-Barajas airport

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This is called abuse of power

(Source: EL TEMPS – Portada: Què ens costa Iberia? N. 1443 7.02.2012)

This is one of

the reasons

for the loss of

competitiveness

and business

opportunities

in Catalonia

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What a mess!

Germany, a country with 82 million inhabitants and a GDP three times higher than Spain, only has 38 airports.

(Source: La Gaceta – Negocios Empresas 3.08.2008)

Spain today

has 50 and

in 2020 will

have 59

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A Catalan couple pays today a 15%

more taxes than a Madrid couple

A Madrid couple saves 444 euros due to the lower rate of the Madrid Autonomous government taxes.

The comparison has been done taking as a basis a couple with two children and lower middle income of 43,000 euros a year.

The regional variation between one region and another can be as much as 1,000 euros.

(Source: AVUI - Economia 26.02.2009)

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One of the highest taxed countries in the world

(Source: Expansión – Menos gasto y más impuestos 31.12.2011

La Vanguardia – Opinió: Tan escandinaus 4.01.2012)

Catalonia and Sweden are

the countries where their

employees pay more taxes

in Europe, with 56%

maximum rate.

A catalan has an income

tax rate of almost twenty

points higher than the EU

average and fifteen points

higher than the average

citizens of the euro area.

Collection or confiscation?

A catalan citizen that earns 400,000

euros will pay 10,000 euros more

than a Madrid citizen

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The crisis has placed Catalans among

the most highly taxed citizens in the world

(Source: El Periódico - Economia 6.10.2010)

When we

will say

enough?

It can put

a break on

attracting

talented

people to

Catalonia

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Andalusia has 8,1 million inhabitants and Catalonia has 7,3 million.

(Source: INE a 1 de juliol del 2009)

Why such a big difference?

(Source: EL Economista 24.07.2009)

Neither do I understand that in the 7 Andalusian provinces there are more handicapped people than retired people, unless they have suffered a nuclear explosion, as Felipe Gonzalez, the ex-President once said.

(Source: EL PUNT -

Punt de Vista 5.10.2010)

State aid for the aged and handicapped people

52

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Spain: country of public workers

In Spain there are already more than 3,1 millions of public workers.

Catalonia is the community that has less public workers.

150,000 civil servants in Madrid, in theory don’t do anything, because their functions have been transferred to the Autonomous region, who are now responsible for Health, Culture and Education. (Source: AVUI 1.08.2008)

A public worker costs almost twice as much as a private sector worker. In 2009 the cost was 50,000 € compare to 28,800 €.

(Source: La Gaceta de los Negocios 4.10.2008)

(Source: La Vanguardia - Economia 6.10.2010

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PER (Rural Unemployment Subsidy)

Spain is different. Official figures state that in all of Spain, there are 95,101 people registered unemployed in the Agricultural sector.

However in Andalusia and Extremadura 158,548 people receive agricultural unemployment benefit.

Though officially you need to work 20 days to have the right to claim the PER, in reality 83.3% of the beneficiaries had only worked for 7 days.

Tip for scroungers. Register your self in any of the 8 Andalusian or the 2 provinces of Extremadura and you will be able to receive this Agricultural Subsidy.

(Source: El Economista - Economia: El PER que no cesa 18.08.2009)

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Facts and figures

The Spanish state has injected 9bn euros to cover the hole in the Caja Castilla-La Mancha savings bank, produced as a result of financing dubious real-state projects.

The prime example is the ghost airport in Ciudad Real (Don Quixote). The mammoth airport costing 1,1 billion euros with the longest runaway in Europe (4 km). At present it is in disuse. Having reached the giddy heights of 3 flights per week.

This mammoth project is for a city of 75,000 inhabitants situated 168 km from Madrid.

(Source: AVUI - Política 7.03.2009)

(Source: Especial - Época 27.02 – 5.03.2009 and AVUI - Bústia 2.09.2010)

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The Catalan hospital waiting lists

The number of people waiting for a non urgent surgical operation grew

by 24,000 in 2011 (42%) reaching the figures of 80,540 patients.

(Source: EL PUNT AVUI - Societat 4.10.2001)

That happens

because Spain creams off

18,5 billion euros

from the Catalan GDP

every year

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Eight communities spend more in health care

than Catalonia

Basque Country, Navarra, Asturias, Castilla-León, Aragón,

Extremadura, Murcia and La Rioja are above Catalonia in health

expenditure per capita.

(Source: AVUI - Societat 5.01.2001)

Catalonia

is always

below

national

average

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Tributary inspeccions are killing Catalonia

From 2000 to 2008 the extra tax revenue from fiscal inspections in Catalonia has been 1,8 billion euros,

while in Madrid only 0,9 billion and in Andalusia 0,3 billion euros

(Source: Directe.cat – Actualitat 15.11.2010)

Catalonia has

suffered twice

the number of

inspections than

Madrid

Catalonia suffers

six times more

inspections than

Andalusia

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The TC and the financing

The sentence of the Spanish Constitutional High Court (TC) destroyed the new financial system, approved by popular referendum the year before, by removing the three basic pillars:

1. The ranking principle (article 206)

2. The bilateral relationship between Catalonia and Spain (article 210)

3. A guarantee of a minimum State investment in infrastructures proportional to Catalan contribution to the GDP (19%)

The conclusion is that the Spanish TC perpetuates and legitimates the plundering of Catalan fiscal resources.

They want us as taxpayers on the first level,

but citizens in second or third class

(Source: AVUI - Política Anàlisi 14.07.2010)

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60

The Government will sell 26 buildings

The Generalitat of Catalonia, who hopes to pull in with theses sales 450 million euros, has extended to 31st of January the deadline to close the operation.

Among the buildings to be sold off are the headquarters of the Ministries of Education at Via Augusta street (52 per million), Agriculture in the Gran Via street (27 million), Employment in Sepulveda street (148 million) and headquarters of the stock exchange market in Barcelona, passeig de Gracia (57,4 million).

Catalan executive prefers to cut the salary of its public workers by 10% rather than risking a direct confrontation with the Spanish government, and they prefer to sell of their assets instead of defending them (Hèctor López Bofill).

(Source: ARA – Economia: immobiliari 14.12.2011 i EL PUNT AVUI – Governar contra Catalunya 14.12.2011)

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61

The elimination of the Catalan savings banks

The Spanish State has won: with the exception of La Caixa, which is now a bank, it has succeeded in eliminating all the Catalan savings banks.

(Source: Bloc de notes de Josep Romeu - 6.10.2011)

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27 years of European Funds for Spain

Spain has received in European Funds between 1986 – 2013 a total of 144 billion euros from the European Union.

(Source: Economy Weblog – http:// economy.blogs.ie.edu / archives / 2007 / 01 / menos_fondos _eu.php)

Why does everybody

speak so well of the

European Funds but

nobody thanks

Catalonia for its

incredibly generous

inter-regional

solidarity or rather

fiscal plundering?

In the same period, Spain has taken from Catalonia 300 billion euros

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63

Lost opportunities

All strategic economic projects financed by the Spanish Government in Catalonia are carried out with an average delay of at least fifteen years.

This 15-year delay means lost opportunities for generating wealth and should be included in the fiscal deficit between Catalonia and Spain.

(Source: ARA – Debat: Intel·ligència estratègica 12.03.2012)

Lost profit or lucrum cesans is the financial loss which occurs when one party fails to meet its

obligations and thereby provokes a financial loss to the other party. This loss is the amount the

victim would have earned if the other party had not failed in his obligations. The party which has

failed in its duties should compensate the other for this loss.

How can this be calculated?

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64

Fiscal deficit Social deficit

(Source: Crónica.cat - Entrevista: Ramon Tremosa 27.09.2010)

Deficit fiscal means worse education, lower living

standard, poorer health care and less investment in

infrastructures.

The fiscal deficit is the tool Spanish State uses

to impoverish the Catalan economy and

to limit the Catalan economic potential,

so that they can continue to control us

Page 65: The Economic, Political and Social Reasons for Founding a Catalan State

Results

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66

Spanish mentality

These Catalans have to be economically strangled.

(Francisco Franco, ex-dictator)

The economic future of Catalonia will be that of a workforce of construction workers and waiters.

(Felipe González, ex-Prime Minister)

This is the proof that the system is working (referring to the Catalan fiscal deficit).

(José Luis Rodriguez Zapatero, ex-Prime Minister)

If they want anything, the Catalans can come every year to feed out

of our hand. (Alfonso Guerra, ex-Vice President)

(Source: AVUI - Alfons López Tena 13.10.2008 and EL PUNT – Opinió: Biel Ferrer 12.08.2009)

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67

Spanish mentality

Jordi Pujol, ex-President of Catalonia, explains things said to him by a high ranking Spanish politician:

You, the Catalans, can pay for our being generous with the other regions of Spain.

We know the system is very unfair with you, the Catalans, but it suits us fine, so shut up.

And what am I going to say to the people on permanent benefit in the south of Spain, the day after you get independent?

(Eduardo Zaplana, ex-Minister of Labour)

(Source: AVUI - Alfons López Tena 13.10.2008 and EL PUNT – Opinió: Biel Ferrer 12.08.2009)

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68

Spanish mentality

The language of Spain is Spanish, not Castilian! Spanish is the common language for everybody. It is the national language that units all of Spain. I will do everything to avoid destroying national unity.

Catalonia was first occupied by king Philip IV, and then it was occupied again by king Philip V who conquered it.

It was bombarded by General Espartero, the revolutionary general, and then we occupied it in 1939 and we are ready to occupy Catalonia as many times as necessary. And for this reason I am ready to take up arms again.

So, you the Catalans, know what you are in for; and here I have my gun ready to use again

(Manuel Fraga, Franco Minister - 1968)

(Source: AVUI - Alfons López Tena 13.10.2008 ind EL PUNT – Opinió: Biel Ferrer 12.08.2009)

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69

The risk of becoming poor is increasing

in Catalonia

One in five Catalans are at risk of falling bellow the poverty line.

One in three women older than 65 years, are at risk.

Five out of 1,000 Catalans are homeless.

(Source: ARA - Crònica societat: Reportatge 3.01.2011)

This is

direct result

of the tax

plundering

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70

We are at the limit

(Font: EL PUNT AVUI – Economia i La Vanguardia – Economia 16.06.2012)

Record, the Catalan national debt rose to 42bn euros in the 1st q of 2012. This represents 21,1% of the Catalan GDP, which compare to the other countries is reasonable.

The refusal of the Spanish government to make the payments of 4,1bn euro owed according to the precepts of the Statuary Law, has contributed to the need for borrowing in Catalonia.

592,5 bn € 55,2% Spanish GDP debt of Central Administration

145,1 bn € 13,5% Spanish GDP debt of Autonomies

36,8 bn € 3,4% Spanish GDP debt of Councils

774,4 bn € 72,1% Spanish GDP total national debt of Spain

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71

How lucky we were that in 2009 the Generalitat

of Catalonia signed a “historical” new financial

agreement with the Spanish Central Government

(Source: ARA – Economia: Tema del dia 21.11.2011)

We have to go further into debt so as not to face up to our fiscal plunderers. Crazy and cowardly.

The financial

ruin of Catalonia

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72

A fact

Who does the Catalan tax revenue belong to?

The loss of our tax revenue creates poverty

Anyone with an income of less than 60% of the average family income is considered poor.

According this, the poverty rate in Catalonia in the year 2000 was 18.6%, more than 1,2 million people (5.850 € per person/year).

There are as many poor people in Catalonia as inhabitants of Extremadura. (Source: La Vanguardia – Opinión: Carlos Sentis 24.07.2009).

(Source: Informe 2003 de l’Observatori de la Pobresa i l’exclusió social. Caixa Catalunya)

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73

Result: Catalonia is sinking

The Catalan financial resources per capita drops from 3rd to 11th position after the Spanish State redistributes our tax revenues.

Catalonia has dropped 6 places between 2003 and 2006 in the IMD World Competitiveness Ranking published in Switzerland.

In the Index of Human Development of the United Nations, Catalonia has fallen from 14th to 18th position between the years 2000 and 2007 , while at the same time Spain gone up from 21st to 13th position.

(Source: AVUI – Diàleg: Il·lusió fracassada. Alfons López Tena 5.10.2008)

Page 74: The Economic, Political and Social Reasons for Founding a Catalan State

Is it convenient

for Catalonia

to be part of Spain?

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75

Is it convenient for Catalonia to be part of Spain?

In 1993, Felipe González, ex-prime Minister, helped Barcelona to lose the possibility of being the seat of the European capital of medicine.

In 2003, José Maria Aznar, ex-prime Minister, helped Barcelona to lose the possibility of being the seat of the European capital of the food sector.

The Spanish government refused to ask for EEC financing of the line 9 of Barcelona underground.

In 2006, José Luis Rodriguez Zapatero, ex-prime Minister, refused to meet the conditions to allow Nissan to build a new automotive plant in Odena, near Barcelona.

Catalonia lost another 400 millions in new investments. Incredible!

(Source: Ramon Tremosa. Catalunya serà logística o no serà. 2007 i

Francesc Sanuy, El Singular Digital, Economia 24.02.2010)

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76

Jordi Pujol, ex-President of Catalonia

The bridges between Spain and Catalonia are broken.

We cannot believe in the Spain of today.

During many years the majority of Catalan citizens had not had

separatist feelings. Before I could find arguments against the

separatist movement, now I fail to find any.

Becoming independent will not be easy. The other option is very

simple, obliteration. In the light of this, people who would never have

dreamed of doing so, will vote for independence.

(Source: El Temps Nº 1391 del 8.02.2011 i Ara - aracrònicapolítica 26.01.2011)

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77

This political map was published in 1854

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78

No one listened to him

In this book published in the year 1985 the Catalan political leader and economist, Ramon Trias Fargas, said:

(Font: Narració d’una asfíxia premeditada. Ramon Trias Fargas. Editorial Afers 2011)

“From the first day, the Madrid politicians

understood that the most efficient way to keep a

stranglehold on the Catalan autonomy was to

keep it on the bread line, and dry bread at that.

Self-government without money is like having a

car without petrol.

However we have to admit that for different

motives we, the Catalans, have not been able to

combat this strategy”.

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79

State policies

Fiscal and Economic

Education and Research

Health and Social Security

Sport and Culture

Security and Defence

Justice and Law and Order

Trade and Industry

Foreign policy

...

Without State we cannot have our own policies

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80

With the Castilian mentality, in their project for Spain

there is no room for the welfare or

the economic development of Catalonia

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Catalan State

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82

Comparative UE-28, with Catalonia

(Source: Eurostat - Euroindicators and INE )

Catalonia

as a State

would be

the 7th

richest

state of the

European

Union

Nr Country (2011) PIB (PPC)

per capita

% UE-27

PIB (PPC) per capita

Population milion

inhabitants

1 Luxemburg 68.900 274 0,5

2 Netherlands 32.900 131 16,6

3 Austria 32.299 129 8,4

4 Ireland 31.800 127 4,4

5 Sweden 31.700 126 9,4

6 Denmark 31.500 125 5,5

Catalonia as a State 30.500 121 7,4

7 Germany 30.100 120 81,7

8 Belgium 29.700 118 10,9

9 Finland 29.200 116 5,3

Catalonia region 28.270 113 7,4

10 United Kingdom 27.200 108 62,4

11 France 27.000 107 65,0

12 Italy 25.300 101 60,6

UE-27 = 100 25.100 100 502,4

13 Spain 24.700 99 46,1

Page 83: The Economic, Political and Social Reasons for Founding a Catalan State

Bibliography

Page 84: The Economic, Political and Social Reasons for Founding a Catalan State

84

Bibliography

Catalunya, país emergent. Ramon Tremosa. Tres i Quatre.

Catalunya serà logística o no serà. Ramon Tremosa. Tres i Quatre.

Economia de la Unión Europea. Jaime de Pablo. Paraninfo.

Economia liberal per a No liberals i No economistes. Xavier Sala. Dèria Editors.

L’espoli fiscal. Una asfíxia premeditada. Jordi Pons / Ramon Tremosa. Tres i Quatre.

Catalunya: estat de la nació. 28 autors. Raval Edicions.

Catalunya sota Espanya. Alfons López Tena. Dèria Editors.

L’Estat contra els pobles. Jaume Renyer. Arola Editors.

2014. Que parli el poble català. Josep Lluís Carod-Rovira. L’arquer.

Per què ens cal una Catalunya independent? Martí Guerrero. La Busca Edicions.

Delenda est Catatonia. Enric Vila Casas. Viena Edicions.

Entre l’espanya i la paret. Xavier Roig. Edicions La Campana.

Catalans. Alfred Bosch i Noemí Ibáñez. Edicions 62.

El mirall escocès. Xavier Solano. Dèria Editors.

Les ciutats creatives. Richard Florida. Raval Edicions, Pòrtic.

Catalanisme Obert al Segle XXI: L’Economia. Xavier Sala i Martín. Nov 2001.

Ferrmed Great Axis Rail Freight Network and its area of influence. Brussels, Oct 2009.

La viabilitat de la independència de Catalunya. Jacint Ros Hombravella. Dèria Editors.

Sense Espanya. Balanç econòmic de la independència. Guinjoan i Cuadras. Pòrtic 2011.

Page 85: The Economic, Political and Social Reasons for Founding a Catalan State

85

Bibliography

Residuals o independents? Jordi Pujol. Raval Edicions SLU, Pòrtic.

Informe Diagonal o com aturar l’independentisme. Josep Gimeno. A Contra Vent Editors.

Cartes d’independència a la vora d’una tassa de te. Isabel-Clara Simó i Patrícia Gabancho. A Contra Vent Editors.

El preu de ser espanyol per a un ciutadà de Catalunya. Joan Hugué i Rovirosa. Duxelm.

Montenegro sí, Catalunya també. Hèctor López Bofill i Uriel Bertran. Ara llibres.

Converses amb Oriol Junqueras. Bernat Ferrer. Viena Edicions.

Catalunya Independent en el SI de la Unió Europea. Antoni Abat i Ninet. CES.

Page 86: The Economic, Political and Social Reasons for Founding a Catalan State

86

Bibliography

Statistical data bases:

Instituto Nacional de Estadística (INE), Institut d’Estadística de Catalunya (IDESCAT), Ministerio de Economía y Hacienda, La Generalitat de Catalunya, Eurostat, Caixa de Catalunya, Observatori del Finançament de Catalunya, el Cercle d’Estudis Sobiranistes, la Cambra de Comerç de Barcelona, l’Institut Ignasi Villalonga and Ferrmed.

Press:

AVUI, La Vanguardia, El Periódico de Catalunya, El Punt, Expansión, EL TEMPS, B-30, La Gaceta de los Negocios, Dossier Econòmic, Presència, El Mundo, El Singular Digital, Público, ARA, El Economista, Paradigmes, L’Econòmic and Món Empresarial.

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87

You will find us in:

www.fundaciocatalunyaestat.cat

Page 88: The Economic, Political and Social Reasons for Founding a Catalan State

88

If we want, we can

The important thing is not the size of the state,

but its efficiency!