Catalonia had €117m trade surplus before losing control over its finances
Madrid took over Catalonia’s finances as it represented a "threat" to budgetary stability
When Spain’s Ministry of Finance took over Catalonia’s finances on September 15, it stated that recent events in Catalonia were "threatening its financial sustainability and, ultimately, its budgetary stability, generating doubts as to the Catalan government’s intention to comply with its public debt payments". Spain, therefore, applied its law on budgetary stability, which is ultimately based on the need to ensure that every administration meets the deficit targets (which remain under Brussels’ control). However, less than two months before Catalonia lost control over its finances, it had achieved a surplus of €117 million, meaning it had managed to reduce its deficit and thus contributed to the administrations fulfilling their objectives as a whole.
This is shown by the data published today by the Ministry of Finance, which reveals that Catalonia went from a deficit of €233 million in July last year to a surplus of €117m this year. A total of nine autonomous communities managed to eliminate their deficit up until July, achieving this feat as a whole: they saw a surplus of €35 million. However, it ought to be pointed out that payments owed to government suppliers are often due towards the end of the year, which may reduce this figure.
According to the statement issued by the Ministry of Finance, the autonomous communities have managed to reduce their deficit to such an extent thanks to the final payment of monies dating back to 2015, which they received as part of the current financing system. This sum is €989 million more than they received in July last year from 2014. In addition, there was also an increase in advance payments over the previous year.
The regions that managed to register a surplus were the following:
The Balearic Islands: 332 million
Valencia: 186 million
Catalonia: 171 million
The Canary Islands: 165 million
The Basque Country: 78 million
Galicia: 74 million
Asturias: 36 million
La Rioja: 31 million
Cantabria: 12 million.
In contrast, Andalusia balanced its budget, while the rest of the regional governments continued to register a deficit, starting with Madrid, with €429 million, followed a long way behind, by Murcia, Navarre and Castilla-La Mancha.
