Funding and entrenchment

Every negotiation regarding Catalonia's financing stems from the same deficiency: a structural problem is being discussed, the premises of which are circumstantial, depending on the political moment. The structural problem is, and always has been, the fiscal deficit carried and accumulated by the regions that contribute the most to the Spanish Treasury, such as Catalonia and the Balearic Islands (Madrid, as always, is an exception, and as always, manipulates its figures: the reality is that it contributes, but also receives much more than the others). The premises of the current moment are, above all, the need for Pedro Sánchez, the PSOE, and the Spanish government to reaffirm the majority that brought them to power, with the aim of getting through this new year and reaching the Generalitat, if not in July 2027, then as far ahead as possible. Then there are also the needs of the others: Salvador Illa's need to approve the Generalitat's budget; After two years of extending them, ERC's aim is to show itself as a demanding partner capable of securing good funding for Catalonia, even if it means applying the principle of ordinality without mentioning it in the text of the agreement; Junts' aim is to play the role of patriotic and inflexible negotiators who are not satisfied with anything (unless it suits Junts, of course).

The structural problem isn't just about numbers: the fiscal deficit is the financial expression of a disconnect that is political, social, cultural, and linguistic. The fiscal deficit is the raw, monetary reflection of the ultimate goal of Spanish nationalism: to make Spain a Jacobin and homogeneous nation-state, modeled on France. As we know: one country, one flag, one king, one language. The debate, the row over funding, to reduce or eliminate the fiscal deficit, is further proof of the failure of Spanish nationalism to achieve this goal. They don't succeed, and that's why Spain is condemned, time and again, to confront what its nationalists detest most: the fact of being a state made up of several nations, with different languages, cultures, and political traditions. All of this is what stirs, pulsates, and makes noise behind the discussion about funding, beyond figures and clauses (which, of course, are fundamental). Economics is not a cold science: it is connected to, and influences and is influenced by, the rest of the human actions and emotions that intervene in politics.

Pedro Sánchez and the PSOE know that, as soon as funding for Catalonia is mentioned, the PP will respond by raising the banner of the grievance this represents for "the rest of the Spanish people." It is a false and absurd banner, but it is effective because it feeds on long-standing xenophobic prejudices and on inferiority and superiority complexes, which reinforce each other. For now, we know that Sánchez has taken a further step (as Aleix Moldes explains) in the recognition of the Catalan partners and their demands. But where that step leads, or doesn't lead, will depend on how well the urgent issues of the moment are resolved.