Island in Madrid: a normality that is not such
The visit of the President of the Generalitat (Catalan government), Salvador Illa, to Madrid this Thursday has generated considerable excitement in economic circles, as evidenced by the fact that those attending his conference included everyone from the president of BBVA, Carlos Torres, to the president of Repsol, Antoni Brufau, and the president of Enagás, Antonio Llardén. Illa's speech, as he has long maintained, was intended to promote Catalonia as an investment destination, arguing that the political conflict has been overcome and the new normality that his presidency represents. "Don't be afraid of Catalonia," he insisted, "because investing in Catalonia is investing in a better Spain." He also highlighted the differences between the Catalan model, which is more oriented toward cohesion and social justice, and the Madrid model of Isabel Díaz Ayuso.
The truth is that the data supports Isla. Just this Thursday, Idescat confirmed Catalonia's GDP growth of 3.6% during 2024, four-tenths of a percentage point above the Spanish average, figures that debunk all the stereotypes about Catalonia's supposed decline. But it's also true that the "normality" Isla seeks to defend still has elements that are too reminiscent of the past and that were one of the causes of the Process. We're referring to the endemic problems of public services and their financing. For example, in the Cercanías network. The argument is that many improvement works are being carried out, which is true, they are turning the service into a real ordeal for users. The problem of Catalonia's underfunding has not been resolved either, on which there should be significant news before July, although for the moment, there doesn't seem to be enough progress.
The structural problems in the relationship between Catalonia and Spain remain unresolved, and competition with territories like Madrid is severely skewed, as the capital has benefited for many years from increased investment and the overfunding afforded by the capital status effect. However, the resilience of the Catalan economy over all these years, even when the political conflict was at its most acute, has been heroic, and is improving even now, taking advantage of political stability.
The Isla government has much work to do. Not only in terms of commuter rail and financing, but also in defending the business and labor market. Today, a key institution for Catalonia's industrial fabric, such as Banc Sabadell, could be taken over, which would reduce the business community's financing capacity. It would be good for Sabadell to feel that the rest of the Catalan business community, the political establishment, and civil society are aligned in the goal of preventing the operation and safeguarding the bank's existence.
