Catalan Independence: Can cash-strapped Spain afford the most-treasured jewel in its crown?

Catalans pay more tax than anywhere else in Spain. As the eurozone crisis deepens, the independence movement is gaining strength. Will this put-upon region break away?

Share

The tide is turning, Catalan filmmaker Josep Citutat tells me. "Something is changing so fast. A lot of people around me, family and friends, who weren't independent – now they are." Record numbers marching on the streets outside his flat in Barcelona confirm his judgment.

Around 1.5 million people were thought to have filled the streets of the Catalan capital last earlier this month. Independentistes poured in from around the region, creating a sea of yellow and red up and down the famous boulevards.

The strength of the protest was no surprise given the dire economic condition in the debt-addled region of a country suffering the worst of the eurozone crisis. As Europe has seen before, economic suffering is feeding nationalist sentiment.

History aside, a portion of this growing antagonism has its origins in the imbalance between what Catalans contribute to central government in Madrid and what they get back in return. The idea that they are supporting the rest of Spain, which is close to collapse, breeds resentment and mirrors similar reactions in northern Europe over the eurozone crisis in general.

In the UK, UKIP is now a force to be reckoned with, giving leader Nigel Farage a sturdier platform than ever from which to question the country’s relationship with the EU. Like the parties of Geert Wilders in Holland and Marine Le Pen in France, UKIP has exploited an economic crisis that threatens to undo 60 years of international cooperation.

Laid bare, Catalonia accounts for approximately 20 per cent of Spain’s economic output, but holds 15 per cent of the population. Economists estimate that Catalonia pays €12bn more in taxes per year to Madrid than it gets back to spend. Many Catalans put this estimation as high as €16bn.

Catalans also pay more than anywhere else in Spain, on average, for property conveyances, health care, vehicle registration, highway tolls and income tax (which rests at 49 per cent in the highest bracket).

Just last month the region asked Madrid for a €5bn bailout, despite cutting faster and deeper than many of the other 17 autonomous regions.

And all this amid Catalonia’s own crisis. Just last month the region asked Madrid for a €5bn bailout, despite cutting faster and deeper than many of the other 17 autonomous regions. The anger caused by the cuts makes Catalans feel they are subsidising Spain more than ever - galvanising the independence movement further.

This imbalance is one of the many things which has led to record numbers joining a call for independence. Nonetheless, Spanish president Mariano Rajoy dismissed the march as an unnecessary distraction in a time of hardship.

Rajoy should perhaps take heed more than ever. The prospect of Catalan independence should bring him out in a cold sweat. To lose such a massive chunk of the economy and still be left with the worst performing regions in the South would spell tragedy.

It could also set a dangerous precedent elsewhere in Europe where austerity at home coupled with contributions to bailouts and stability funds abroad are sources of rising nationalism too.

With its own unity, and that of Europe in mind, Madrid needs to readdress its relationship with the most treasured jewel in its once glorious crown. There needs to be sensible compromise with the Catalans, or Spain faces the reality of a disastrous split which is certain to draw the attention of an already precariously united Europe.

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
iJobs Job Widget
iJobs General

Recruitment Genius: Account Manager / Media Sales - OTE up to £30,000

£20000 - £30000 per annum: Recruitment Genius: This award-winning company, whi...

Recruitment Genius: Senior Software Developer

£40000 - £50000 per annum: Recruitment Genius: This is a unique & exciting opp...

Recruitment Genius: UX Consultant

£35000 - £45000 per annum: Recruitment Genius: You will be working with a 8 st...

Recruitment Genius: Part-time Editor

£8000 - £12000 per annum: Recruitment Genius: A unique opportunity has arisen ...

Day In a Page

Read Next
 

The economics of the stock market is simple really: buy and hold

Ben Chu
Jeb Bush's campaign will emphasise both his conservative record as a former governor of Florida and his commitment to building a more inclusive Republican Party  

American democracy is up for sale, and it’s a warning to us all

Shirley Williams
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests
Mexico: A culture that celebrates darkness as an essential part of life

The dark side of Mexico

A culture that celebrates darkness as an essential part of life
Being sexually assaulted was not your fault, Chrissie Hynde. Don't tell other victims it was theirs

Being sexually assaulted was not your fault, Chrissie Hynde

Please don't tell other victims it was theirs
A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border