Catalan message
The eurozone crisis has brought down more than one government but until now it has not called into question the survival of the nation state itself. Yet that is what appears to be happening in Spain, a development dramatised by this week’s outpouring of separatist fervour in Catalonia.
On Tuesday, up to 1.5m Catalans rallied in the streets of Barcelona behind the slogan “Catalonia, a new state in Europe”. The plurinational Spain, built upon a highly devolved system of regional government after the end of the Franco dictatorship, now risks break-up.
The eurozone crisis is partly to blame. It has mercilessly exposed the fragility of Spain’s fiscal arrangements. In this case, the relatively rich Catalans are outraged that they have to contribute up to 9 per cent of annual economic output to the central pot in Madrid, but then go cap-in-hand for a bailout to meet their debt and payroll commitments. Catalonia wants fiscal autonomy: the right to collect its own taxes like the Basques, who contribute proportionally much less to Spanish coffers.
Yet Spain, where prime minister Mariano Rajoy is agonising over whether to seek a full eurozone bailout, needs Catalan fiscal transfers to meets its pensions and welfare liabilities. Mr Rajoy’s rightwing Partido Popular government, which is ideologically hostile to devolution, is trying to use the crisis to recentralise Spain, creating a dangerous cocktail of fiscal penury and national grievance.
More than half of Catalonia’s citizens now believe its future is in peril if they remain tied to a Spanish state they feel can no longer accommodate their own sense of nationhood. By contrast, Spanish nationalists disdain Basque and Catalan identity as narcissism, and regard the unity of Spain as sacred.
Both sides need to realise that mainstream nationalism has been outflanked in Catalonia. Artur Mas, the Catalan president, has a decisive meeting with Mr Rajoy next week. He will demand fiscal autonomy, either as the bridge to enhanced home rule or a building block for full independence.
Ideally, both leaders would agree on a better fiscal model, which would include fairer transfers from richer to poorer regions. This should be explored – but not now, when the priority must be to address the economic emergency. Mr Mas will more probably come away empty-handed, and call an early election that will become a referendum on Catalan independence. A constitutional crisis looms