Friday, September 7, 2012

Diada & Finacial Times

"Alongside the eurozone crisis and Spain’s worsening public finances and chronic lack of economic growth and jobs, Madrid looks to be sleepwalking into a constitutional crisis that could lead to the break-up of Spain.

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Next Tuesday, Catalans celebrate their national day, or Diada, in a year when the clamour for independence for the first time commands the support of more than half the population – including figures such as Jordi Pujol, the mainstream nationalist who ran the restored Catalan autonomous government from 1980 to 2003, and Pep Guardiola, the former manager of Barcelona’s football team.

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The centre-right government of Mariano Rajoy evidently aims to use the present financial crisis not just to shrink the state but to recentralise it.

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Using as its pretext the fiscal incontinence of several regions, it is threatening to take over their governments unless they adhere to unfeasibly tight budget targets.

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The genteel nationalists who run the Catalan government are in a quandary. The Rajoy government is ideologically opposed to any extension of fiscal federalism. But any government in Madrid will need the Catalan subsidy to meet the health and pension liabilities of an ageing population. I la conclusió, claríssima: To keep the Catalans inside Spain, Madrid would need to offer them a similar deal. That looks most unlikely."

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