By June, the PSC and ERC must present a proposal for financing the Generalitat (Catalan regional government) that specifies what they agreed upon in the second point of Salvador Illa's investiture agreement, entitled "Agreement for a new, unique financing model." This specification can take two forms: underscoring the uniqueness of the proposal or constituting a general reform of the financing of the regional governments under the common system.
A good way to grasp the difference is to review two very recent conferences. The first, led by former Minister of Economy of the Generalitat (Catalan Government), Antoni Castells, took place on May 15 in Barcelona; the second, four days later in Madrid, was given by Jesús Fernández Villaverde, a renowned academic who is becoming one of the most notable ideologues of the contemporary Spanish right.
Castells's essay lasts 46 minutes, which the author spends reading an elegantly written, thoughtful, and eloquent text. The exposition begins with the observation that the precedents of the process now about to begin are discouraging, since all the reforms to the common regional financing system have been led by Catalonia; they have automatically unleashed a barrage of furious criticism from Spanish nationalists with two spurious arguments: that Spain is breaking up and that Catalonia is unsupportive; they have led to tortuous negotiations in which the proposal was watered down and have ultimately yielded an agreement that was accepted by the rest of the regional governments to the extent that it also benefited them. Inevitably, the process has ended up generating anti-Catalan sentiments there and frustration here.
Castells's thesis is that in Spain there is an asymmetry in popular sentiments toward autonomy that has given rise to a singular conflict, demanding a singular response, and that only this singularity can restore institutional stability, exactly as in Quebec or Scotland. Consequently, Castells advocates the unity of all Catalanist forces—with explicit reference to Junts—to impose an exclusive model on the state.
For his part, Villaverde's exhibition continues with the publication of a book significantly titled The Catalan quota bill. which he co-wrote with Francisco de la Torre, a tax inspector and former Ciutadans MP, and is very different from Castells's. To begin with, it's exactly half the length, which he uses admirably to make clear that his position is solidly based on objective data and to express it transparently and without fear of raising eyebrows: "Bilbao is stealing from us," "the Catalan elites are trying to build a proto-state and want others to pay for it," etc. The language is direct and the message is clear: the Basques have a privilege, and what the Catalans want is to share it to the detriment of the rest of the Spanish people.
Castells' approach has three problems. First, the unity of the Catalanist forces around the PSC-ERC agreement is a pipe dream, as made clear by the TV3 interview with Carles Puigdemont last December (starting at minute 26). Second, the asymmetry must be manifested in the number of powers, not in the funding of the same powers. Third, it's not about convincing the Spanish government (i.e., the PSOE and Sumar), but rather that the reform, to move forward, must be supported by, among others, Compromís, the BNG, Podemos, and, if possible, Coalición Canaria. Is it reasonable to think that these parties will vote in favor of a proposal unique to Catalonia? No, especially if we remember that Valencia is well aware of being the worst-funded region.
Much to our chagrin, the proposal can only be passed if it meets two conditions. First, it must be part of a reform of the financing system for the autonomous communities under the common regime. In fact, the initial proposal, drafted by the Aragonese government, already made it clear that it could be extended to the rest of the autonomous communities that wished to adopt it. Second, the proposal must be based on the principle of ordinality: no community can be worse funded than another that has made a smaller fiscal effort. This principle is championed by experts, easily understood by ordinary citizens; its implementation would be extraordinarily beneficial for Catalonia and automatically create allies (starting with Valencia and the Balearic Islands).
That both alternatives are incompatible is demonstrated by the fact that, despite the principle of ordinality being one of the key elements of the PSC-ERC agreement, Castells did not refer to it even once during his presentation. We'll see which approach our representatives favor.
