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Urkullu proposes the concert as a reference for the new funding

The Lehendakari ensures that the viability of the autonomic financing model does not depend on the amount of the quota

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Urkullu proposes the concert as a reference for the new funding

The debate on regional funding has been poisoned after approval, on Thursday 23 November at Congress of Deputies, of update of economic concert (294 votes in favor and 36 against), and Basque quota (292 votes in favor, 36 against and two abstain Of deputies of EH Bildu). Despite support of majority groups — PP, PSOE and we can — regional leaders of se parties in Asturias, Andalusia, Comunidad Valenciana, Aragon, Galicia and Castilla y León were very critical, after two years of non-compliance with Government of Mariano Rajoy in area of regional finance.

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Urkullu, although it considers criticism unjust, argues in an article in country, that debate can be channelled in constructive terms to achieve a simple and clear system that allows communities to have sufficient resources of ir own, and to do so on basis To principle of fiscal and financial responsibility of concert, i.e. decentralizing tax collection to give more leeway to autonomous communities.

The Lehendakari explains that model of concert "is a transparent fiscal regime so that if Euskadi wants to spend more on services must proceed to raise taxes or cut or own expenses", and ensures that it does not favor " reduction of taxes or It allows Euskadi to be a tax haven. In fact, average fiscal pressure in Euskadi has always been superior to Hispaniola since year 1981 and today it is still in more than three points, ' he insists.

Faced with this view, critics of Basque system argue that everything is limited to central government paying PNV with an advantageous agreement that guarantees overfinancing for political support lent by Basque nationalists to budgets of 2017. Urkullu responds to formations as citizens and to regional leaders of PSOE, of PP and of Compromís, that " debate on system of financing of Autonomous Communities should not seek answer to ir eventual necessities in system of Concert" Because it is obvious that viability of model of autonomic financing does not depend, at all, on amount of Basque quota, "— amount that Euskadi pays for services provided by State — but that, indeed, y have more resources guaranteed through Taxes.

Financial singularity

A foral system. The Basque economic concert is framework that regulates financial relations between Basque Country and central state. The Spanish Constitution of 1978 recognizes singularity of two territorial territories, Basque Country and Navarre.

Payment for services. The quota is amount that Basque country has to pay each year to state for services it provides in its territory by powers not transferred under economic concert. It is reviewed and negotiated every five years.

Fundraising. The three provincial governments are responsible for collecting all taxes in Basque Country. The income tax, VAT, companies, special ... and n contribute to State for expenses agreed in quota.

For those who question opacity of quota, Basque president tells m that concert is not a regime of privilege, but a fair and solidarity system, in which Euskadi assumes a unilateral risk. "It is an agreed, efficient and transparent system of administration of tax resources that enjoys full legal support and a general consensus" in Euskadi, remarking Lehendakari. It emphasizes that "Euskadi contributes 6.24%" of non-assumed competencies like army or House of King among ors and "contributes that same percentage to fund of interterritorial compensation". In addition, it explains that 6.24% of Basque contribution to state "is well above both relative weight of Basque population, which represents 4.67% of total, as above relative weight of wealth or share in GDP, which is in 6%".

The PNV and PP have clung to law of concert, to Statute of Autonomy, and its anchorage in Constitution, to launch an internal message, to Catalonia, and anor external, to European Union (EU), if re was any doubt that you can have a different lace in Spain And do it within law with a bilateral relationship system. The two parties, — in Euskadi and Madrid — and two governments, both in minority, agree that questioning a system that has been operating since 1878, which was recovered in constitution of 1978 and has been endorsed by EU justice, is to create a problem where no and Xiste, in addition to detracting value to agreement and a bilateral relationship at a juncture like present, with government intervened, in which it should be more in mind.

"Soldering Point"

The Lehendakari defends in its article in country that system has served to support balance between state and Basque Country. "The management of bilateral relationship is based on recognition and mutual respect, so that neir party can impose its position on or," he says. And argues that "this system enshrines need for dialogue, negotiation and mutual benefit." In practice, during all se decades, Bilaterality has established a welding point between Euskadi and state. The unit of criterion and performances around concert have earneded PNV and PP harsh criticisms. In Euskadi, EH Bildu continues to press PNV to abandon " wake of PP", especially after party of Andoni Ortuzar has agreed on autonomic budgets with popular Basques.

PNV and PP, on path of regaining confidence

The PNV and PP have already taken path to give stability to Euskadi and state. If in 2017 Basque PP abstained to approve Basque budgets and PNV contributed ir seats to cabinet of Mariano Rajoy to get ahead those of Spain, scenario for 2018 again appears, as Catalan crisis is channeled and elections approaching December 21st in that autonomous community.

Popular and nationalist coincide, moreover, that regaining confidence is first step in reactivating national scenario. The agreement paves way for, with a new government in Catalonia and defused article 155 which intervened autonomous community, central and Basque executives, and parties that support m in Congress, reopen negotiations around budgets Generals of state for 2018.

In this process of recovery of confidence, ratification of concert and quota, and defense that central government made of constitutionality of both, adds pact that PP of Euskadi and PNV, toger with Basque socialists , y sealed last week to facilitate budgets of Basque Government and three deputies, especially Alavesa with PNV and PSE in minority.

The 2018 budgets benefit both Basque nationalists and PSE as y consolidate closed agreements between PNV and PP in 2017 and, in addition, would allow central government to end legislature in 2019 with stability, if it decides to advance one year Elections.


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