What does the ordinality criterion represent in regional financing?
The application of this concept would entail setting limits for the first time on inter-territorial solidarity.
BarcelonaThe Spanish and Catalan governments disagree on a key point of the new financing system: the ordinality criterion, which was included in the ERC-PSC agreement to invest Salvador Illa and which was endorsed by the PSC. Now the Spanish government is backing away and stating that it does not accept it, because it is something that should be discussed among all the autonomous communities. But what exactly is it, and what would the application of the ordinality criterion mean?
On paper, it is a very simple principle that stipulates that if a territory contributes the most per capita, it must also receive the most. And if it is second, it must receive the second; if it is third, it must receive the third; and so on. This criterion is currently not being met, resulting in the final distribution of resources being particularly detrimental to four territories: the Community of Madrid, the Balearic Islands, Catalonia, and the Valencian Community. Thus, according to 2022 data, the Community of Madrid is the one that collects the most (€4,328 per inhabitant), but when it comes to receiving, it is the eleventh (€3,233). The Balearic Islands are the second territory in terms of tax effort (€3,677), but the ninth in terms of receiving (€3,312). And Catalonia is the third in contributions (€3,565), but falls to tenth position after the application of the leveling system (€3,264). The case of the Valencian Community is significant because it is not a wealthy community, as it is eighth in terms of tax effort, but after the application of the system, it falls into the bottom of the ranking, in fifteenth position.
CAPACITAT FISCAL
FINANÇAMENT / RECURSOS
mitjana 3.033 €/hab
mitjana 3.341 €/hab
Madrid
Cantàbria
4.328 €/hab
4.215 €/hab
Illes Balears
la Rioja
3.677 €/hab
4.131 €/hab
Extremadura
Catalunya
4.018 €/hab
3.565 €/hab
Aragó
Castella i Lleó
3.250 €/hab
3.954 €/hab
Cantàbria
Aragó
3.175 €/hab
3.903 €/hab
Astúries
Astúries
2.964 €/hab
3.807 €/hab
Castella i Lleó
Galícia
2.954 €/hab
3.756 €/hab
la Rioja
Castella-la Manxa
2.952 €/hab
3.388 €/hab
País Valencià
Illes Balears
2.892 €/hab
3.312 €/hab
Galícia
Catalunya
2.692 €/hab
3.264 €/hab
Castella-la Manxa
Madrid
2.456 €/hab
3.233 €/hab
Múrcia
Illes Canàries**
2.427 €/hab
3.209 €/hab
Andalusia
Andalusia
2.406 €/hab
3.123 €/hab
Extremadura
Múrcia
2.177 €/hab
3.087 €/hab
Illes Canàries**
País Valencià
1.312 €/hab
3.054 €/hab
CAPACITAT FISCAL
FINANÇAMENT
mitjana 3.033 €/hab
mitjana 3.341 €/hab
Madrid
Cantàbria
4.328 €/hab
4.215 €/hab
Illes Balears
la Rioja
3.677 €/hab
4.131 €/hab
Extremadura
Catalunya
4.018 €/hab
3.565 €/hab
Aragó
Castella i Lleó
3.250 €/hab
3.954 €/hab
Cantàbria
Aragó
3.175 €/hab
3.903 €/hab
Astúries
Astúries
2.964 €/hab
3.807 €/hab
Castella i Lleó
Galícia
2.954 €/hab
3.756 €/hab
la Rioja
Cast.-la Manxa
2.952 €/hab
3.388 €/hab
País Valencià
Illes Balears
2.892 €/hab
3.312 €/hab
Galícia
Catalunya
2.692 €/hab
3.264 €/hab
Cast.-la Manxa
Madrid
2.456 €/hab
3.233 €/hab
Múrcia
Illes Canàries**
2.427 €/hab
3.209 €/hab
Andalusia
Andalusia
2.406 €/hab
3.123 €/hab
Extremadura
Múrcia
2.177 €/hab
3.087 €/hab
Illes Canàries**
País Valencià
1.312 €/hab
3.054 €/hab
CAP. FISCAL
FINANÇAMENT
mitjana 3.033 €/hab
mitjana 3.341 €/hab
Madrid
Cantàbria
4.328 €/hab
4.215 €/hab
Illes Balears
la Rioja
3.677 €/hab
4.131 €/hab
Extremadura
Catalunya
4.018 €/hab
3.565 €/hab
Aragó
Castella i Lleó
3.250 €/hab
3.954 €/hab
Cantàbria
Aragó
3.175 €/hab
3.903 €/hab
Astúries
Astúries
2.964 €/hab
3.807 €/hab
Castella i Lleó
Galícia
2.954 €/hab
3.756 €/hab
la Rioja
Cast.-la Manxa
2.952 €/hab
3.388 €/hab
País Valencià
Illes Balears
2.892 €/hab
3.312 €/hab
Galícia
Catalunya
2.692 €/hab
3.264 €/hab
Cast.-la Manxa
Madrid
2.456 €/hab
3.233 €/hab
Múrcia
Illes Canàries**
2.427 €/hab
3.209 €/hab
Andalusia
Andalusia
2.406 €/hab
3.123 €/hab
Extremadura
Múrcia
2.177 €/hab
3.087 €/hab
Illes Canàries**
País Valencià
1.312 €/hab
3.054 €/hab
On the contrary, there are regions that benefit especially from the current system. The most spectacular case is Extremadura, which is number 14 in fiscal capacity (2,177) and climbs to third in resources per capita (4,018). In other words, just as the Balearic Islands and Catalonia have dropped nine places, Extremadura has risen eleven. The opposite is true for Catalonia, which receives almost twice as many resources as it can collect and ends up with €750 more per inhabitant than the Generalitat (Catalan government). The distortion of the system is such that a wealthy region like Cantabria, which is fifth in fiscal capacity (3,175), ends up first in resources, with €4,215 per inhabitant, almost a thousand more than Catalonia.
What would happen if the ordinality criterion were applied? Well, the wealthy autonomous communities would continue to provide resources to the poorer ones, but with a limitation: these poorer autonomous communities could never have more resources per capita. However, this criterion must be made compatible with another, which is that no autonomous community can have fewer resources than before under the new system. And therein lies the difficulty, since, for example, Extremadura, which now receives €4,000 per inhabitant, should maintain that figure and remain in fourteenth place. This means that all those above it should obtain many more resources. In the case of the Valencian Community, for example, it should receive a minimum of €1,000 more per capita, that is, an increase of 25% of its current resources. To balance the numbers, the State would have to put between €20 and €25 billion extra on the table, almost half of which would be for Madrid and Catalonia alone. This figure would force the State to significantly reduce its size, hence its resistance to the concept of ordinality.
