04
de Setembre
de
2015
Act.
09
de Setembre
de
2015
The unique political times that Catalonia is living through is also making itself felt in the economic and business sector. A little over a year since the publication of the Manifest del Far, some thirty organisations this Thursday renewed their commitment in favour of the citizens of Catalonia's right to decide. The main chambers of commerce, employers' associations and business organisations have questioned the fears that could emerge from the process; in the same way that the threats about loss of investment have not so far become a reality, rather the opposite.
In an event held in La Pedrera in Barcelona, recognised economists such as Xavier Sala-i-Martín, Jordi Galí, Miquel Puig and Joan B. Casas offered their arguments in favour of the creation of a new Catalan state.
"The State can continue making AVE's and punishing the autonomous communities"
Joan B. Casas, dean of the Col·legi d'Economistes de Catalunya, who participated in the event as a private individual; exposed Catalonia's budgetary difficulties within the Spanish framework. "After the Balearic Islands, Catalonia is under the highest fiscal pressure in Spain, and yet revenue is always below the average," he lamented. According to Casas, "90% of the Generalitat's budget depends on a funding model that has this disparity. In the budgets, a basic tool, there is almost no impact on revenue."
The economist also made it clear that in the field of spending, the Generalitat "is heavily conditioned by the services it provides. More than 70% of spending is purposed, allocated to health, education, social services, etc." Moreover, Casas was critical of the fact that while the deficit is determined in part by Brussels, "the State can continue making AVE's and punishing the autonomous communities, because it decides how funds are distributed." In that sense, the government of the Moncloa has reserved for 2015 more than 80% of this deficit, "while the Generalitat has to make do with 0.7%, and next year 0.3%." For Casas, this "has required a colossal effort, as since 2010 until now the Generalitat has reduced its budget by 20%." In all, Joan B. Casas concludes that "the challenge is a major one, but the gap between what we are and what we could be makes it worthwhile."
"Discrimination in public spending is continuous over time"
The economist Jordi Galí pointed out that "for another year, public spending in Catalonia is well under what is appropriate according to its population or GDP." In his opinion, this fact is not limited to a specific year, but "is produced continually over time. The accumulated impact of this policy is significant."
Galí presented a brief study showing the effect on Catalan GDP that a policy of public spending balanced with its productive capacity could have. According to his calculations, a policy of non-discrimination in the past 10 years would have increased the stock of public capital by 16.1%, a figure that would rise to 26.4% if we go back 20 years. "This has a clear effect on people's welfare, but also on the productivity of the private sector." For Galí, the rise in Catalan GDP would be 8% if public spending had been "fair" in the past 10 years, and 13.2% in the past 20 years.
"Even if we wanted to leave the euro and the EU, they wouldn't let us"
Another renowned economist, Miquel Puig, focused his speech on dispelling the doubts over the continuity of an independent Catalonia in the euro and the European Union (EU). Puig reminded his audience that even the British arguments against the independence of Scotland did not threaten exclusion. In fact, "they were threatened with the imposition of the euro and the Schengen Area. To impose that on us would more than likely leave us unmoved," he said ironically. In his understanding, the only clear thing would be the need to establish a framework for negotiations, "a paradise for the lawyers and the economists".
Beyond his irony, Puig reminded his audience that "theoretically, states are autonomous, but they are only truly so when solvent, and that is not the case of Spain and nor would it be of Catalonia." Thus, he insisted that "even if we wanted to leave the euro and the EU, they wouldn't let us. There are so many industrial and financial interests that what is sure is that we would continue to be part of it." As an example, he wondered if "anyone could imagine Volkswagen giving up its industrial interests in Catalonia? Or BBVA leaving all of its commercial network in Catalonia outside of Europe?"
"David was not so weak, nor Goliath so strong"
Xavier Sala-i-Martín used the popular metaphor of David and Goliath to talk about Catalonia and Spain, insisting that "very often what seems powerful in reality isn't". For the professor of the University of Columbia and the UPF, "Spain is an ill state that is increasingly weaker thanks to those who govern it. When they rush through changes to the laws, put pressure on judges and manipulate documents, they show enormous weakness."
Sala-i-Martín reminded his audience that "one of our major strong points is the business system, the capacity to innovate and export, in short, economic vitality. There is no chance that that will disappear if we are independent." In his opinion, in an independent Catalonia "we will continue to have good businesses and good universities." However, he concluded that "Catalonia's great strength is its hope. In any debate there are those who look angry and those who smile. Without any sound, just looking at the faces, it is clear who is an independent and who is a unionist."
Business people want nothing of fear
Antoni Abad, chairman of Cecot, offered the speech that was most clearly in favour of independence. "The quality of democracy and the separation of powers favour economic growth and generate confidence. The right to vote seems to us an element of democratic quality," he said. Abad insisted that "democracy does not cause anxiety to business people. What worries us is intolerance and ignorance."
The Cecot chairman was blunt in stating that "we can see with some concern that Spain has not been willing to talk since the Transition, something that creates tension and harms the working of the economy." For Abad, the aspiration of attaining "an internationally recognised state" is "a positive challenge". At the same time, he made it clear that "what generates tension and concern are the truths that are produced, what has happened and what is happening." And he expressed his hopes for "the chance to build a business oriented, competitive and socially oriented country from zero."
The rest of the representatives of the business sector, whether adopting such a clear stance on 'yes' or 'no', made their commitment and respect for the right to decide of the citizens of Catalonia at the ballot box clear. Josep González, chairman of Pimec, demanded that "this process be taken seriously". At the same time, he called on all those involved, whether here or abroad, to "make things easy". For González, it is fundamental to "avoid tension and apocalyptic statements that distract us and that do not help to develop the normal path of democratic activity. On 27th September we want peaceful elections."
At the same time, the Pimec chairman said that "we do not understand so much fear, worry and interference." And he expressed himself completely against "senseless comparisons that we have had to listen to in the past few days. Nor do we understand how some organisations dare to tell business people what they have to do or say to their employees in relation to this process, or how political figures can make lamentable historical comparisons," referring to the recent stance of Foment del Treball and the former prime minister, Felipe González.
Ramon Carbonell, chairman of FemCat, reminded his audience that the role of his organisation is "to provide business people with tools so that Catalonia can become a leading country in Europe." Carbonell insisted that FemCat "restates its commitment and accepts that the decision of the Catalan public has to be respected and, what's more, it is not linked to any economic risk." The organisation's head reminded his audience of the Catalan economic potential in the field of exports, tourism and research, insisting "we will continue opening companies abroad because it is our vocation, and democracy will not prevent that. We do not take decisions based on political criteria, but rather on rationality." Carbonell concluded saying that "we will continue working as hard or harder on 28S, whatever the results of the elections."
Finally, Domènec Espadalé, vice chairman of the Consell General de Cambres de Catalunya and chairman of the Girona chamber of commerce, said that his organisations "defend the general interests of the economy and companies, respecting the different opinions of everyone. We have always clearly seen the need to respect and accept the majority will of the Catalan people." For Espadalé, "we must not stop working for the economic progress of our country. The debate is not whether an independent Catalonia would be viable, as has been shown. The question is whether it is worth it due to the risks this change supposes." The representative of the chambers of commerce put continued membership of the EU as a sine qua non condition. Espadalé showed himself in favour of dialogue with the State, while recognising that "if there is no willingness on behalf of the Central Government, it is impossible."
In an event held in La Pedrera in Barcelona, recognised economists such as Xavier Sala-i-Martín, Jordi Galí, Miquel Puig and Joan B. Casas offered their arguments in favour of the creation of a new Catalan state.
"The State can continue making AVE's and punishing the autonomous communities"
Joan B. Casas, dean of the Col·legi d'Economistes de Catalunya, who participated in the event as a private individual; exposed Catalonia's budgetary difficulties within the Spanish framework. "After the Balearic Islands, Catalonia is under the highest fiscal pressure in Spain, and yet revenue is always below the average," he lamented. According to Casas, "90% of the Generalitat's budget depends on a funding model that has this disparity. In the budgets, a basic tool, there is almost no impact on revenue."
The economist also made it clear that in the field of spending, the Generalitat "is heavily conditioned by the services it provides. More than 70% of spending is purposed, allocated to health, education, social services, etc." Moreover, Casas was critical of the fact that while the deficit is determined in part by Brussels, "the State can continue making AVE's and punishing the autonomous communities, because it decides how funds are distributed." In that sense, the government of the Moncloa has reserved for 2015 more than 80% of this deficit, "while the Generalitat has to make do with 0.7%, and next year 0.3%." For Casas, this "has required a colossal effort, as since 2010 until now the Generalitat has reduced its budget by 20%." In all, Joan B. Casas concludes that "the challenge is a major one, but the gap between what we are and what we could be makes it worthwhile."
"Discrimination in public spending is continuous over time"
The economist Jordi Galí pointed out that "for another year, public spending in Catalonia is well under what is appropriate according to its population or GDP." In his opinion, this fact is not limited to a specific year, but "is produced continually over time. The accumulated impact of this policy is significant."
Galí presented a brief study showing the effect on Catalan GDP that a policy of public spending balanced with its productive capacity could have. According to his calculations, a policy of non-discrimination in the past 10 years would have increased the stock of public capital by 16.1%, a figure that would rise to 26.4% if we go back 20 years. "This has a clear effect on people's welfare, but also on the productivity of the private sector." For Galí, the rise in Catalan GDP would be 8% if public spending had been "fair" in the past 10 years, and 13.2% in the past 20 years.
"Even if we wanted to leave the euro and the EU, they wouldn't let us"
Another renowned economist, Miquel Puig, focused his speech on dispelling the doubts over the continuity of an independent Catalonia in the euro and the European Union (EU). Puig reminded his audience that even the British arguments against the independence of Scotland did not threaten exclusion. In fact, "they were threatened with the imposition of the euro and the Schengen Area. To impose that on us would more than likely leave us unmoved," he said ironically. In his understanding, the only clear thing would be the need to establish a framework for negotiations, "a paradise for the lawyers and the economists".
Beyond his irony, Puig reminded his audience that "theoretically, states are autonomous, but they are only truly so when solvent, and that is not the case of Spain and nor would it be of Catalonia." Thus, he insisted that "even if we wanted to leave the euro and the EU, they wouldn't let us. There are so many industrial and financial interests that what is sure is that we would continue to be part of it." As an example, he wondered if "anyone could imagine Volkswagen giving up its industrial interests in Catalonia? Or BBVA leaving all of its commercial network in Catalonia outside of Europe?"
"David was not so weak, nor Goliath so strong"
Xavier Sala-i-Martín used the popular metaphor of David and Goliath to talk about Catalonia and Spain, insisting that "very often what seems powerful in reality isn't". For the professor of the University of Columbia and the UPF, "Spain is an ill state that is increasingly weaker thanks to those who govern it. When they rush through changes to the laws, put pressure on judges and manipulate documents, they show enormous weakness."
Sala-i-Martín reminded his audience that "one of our major strong points is the business system, the capacity to innovate and export, in short, economic vitality. There is no chance that that will disappear if we are independent." In his opinion, in an independent Catalonia "we will continue to have good businesses and good universities." However, he concluded that "Catalonia's great strength is its hope. In any debate there are those who look angry and those who smile. Without any sound, just looking at the faces, it is clear who is an independent and who is a unionist."
Business people want nothing of fear
Antoni Abad, chairman of Cecot, offered the speech that was most clearly in favour of independence. "The quality of democracy and the separation of powers favour economic growth and generate confidence. The right to vote seems to us an element of democratic quality," he said. Abad insisted that "democracy does not cause anxiety to business people. What worries us is intolerance and ignorance."
The Cecot chairman was blunt in stating that "we can see with some concern that Spain has not been willing to talk since the Transition, something that creates tension and harms the working of the economy." For Abad, the aspiration of attaining "an internationally recognised state" is "a positive challenge". At the same time, he made it clear that "what generates tension and concern are the truths that are produced, what has happened and what is happening." And he expressed his hopes for "the chance to build a business oriented, competitive and socially oriented country from zero."
The rest of the representatives of the business sector, whether adopting such a clear stance on 'yes' or 'no', made their commitment and respect for the right to decide of the citizens of Catalonia at the ballot box clear. Josep González, chairman of Pimec, demanded that "this process be taken seriously". At the same time, he called on all those involved, whether here or abroad, to "make things easy". For González, it is fundamental to "avoid tension and apocalyptic statements that distract us and that do not help to develop the normal path of democratic activity. On 27th September we want peaceful elections."
At the same time, the Pimec chairman said that "we do not understand so much fear, worry and interference." And he expressed himself completely against "senseless comparisons that we have had to listen to in the past few days. Nor do we understand how some organisations dare to tell business people what they have to do or say to their employees in relation to this process, or how political figures can make lamentable historical comparisons," referring to the recent stance of Foment del Treball and the former prime minister, Felipe González.
Ramon Carbonell, chairman of FemCat, reminded his audience that the role of his organisation is "to provide business people with tools so that Catalonia can become a leading country in Europe." Carbonell insisted that FemCat "restates its commitment and accepts that the decision of the Catalan public has to be respected and, what's more, it is not linked to any economic risk." The organisation's head reminded his audience of the Catalan economic potential in the field of exports, tourism and research, insisting "we will continue opening companies abroad because it is our vocation, and democracy will not prevent that. We do not take decisions based on political criteria, but rather on rationality." Carbonell concluded saying that "we will continue working as hard or harder on 28S, whatever the results of the elections."
Finally, Domènec Espadalé, vice chairman of the Consell General de Cambres de Catalunya and chairman of the Girona chamber of commerce, said that his organisations "defend the general interests of the economy and companies, respecting the different opinions of everyone. We have always clearly seen the need to respect and accept the majority will of the Catalan people." For Espadalé, "we must not stop working for the economic progress of our country. The debate is not whether an independent Catalonia would be viable, as has been shown. The question is whether it is worth it due to the risks this change supposes." The representative of the chambers of commerce put continued membership of the EU as a sine qua non condition. Espadalé showed himself in favour of dialogue with the State, while recognising that "if there is no willingness on behalf of the Central Government, it is impossible."