Spain fails to deliver promised investment in Catalonia

Spain’s financial chokehold on Catalonia has been much explained and analyzed. However, there are new data that help us to understand why there have been so many complaints over the years: the percentage of compliance with budgeted investments. We already knew that Spain´s investment in Catalonia is far below average, if you take into account variables such as population, for example. This investment deficit is severe and has been amply condemned without, thus far, having convinced Spain’s incumbent finance bosses. Most worrying of all, however, is not only that public spending is low, but also that, on top of this, only 70% of the budgeted investments were delivered in 2015.

Last week the Spanish government published the latest report on public investment broken down by region —which is published biannually— with figures from 2015. It shows the real investments made compared to what had been budgeted. According to these data Catalonia is well below average. If we look at this on a per capita basis, while Madrid spent €163 per Spanish citizen in 2015, the expenditure was only €99.50 in the case of Catalonia.

Only three other regions in Spain are below the average. In addition to the Canary Islands, which has less investment but also has its own tax privileges, we coincidentally find Valencia (€93.90 per resident) and the Balearic Islands (€106.80). The Mediterranean axis, then, is the area most punished by Madrid in terms of public spending. This area is also the source of a good deal of the wealth that ends up in Madrid’s coffers and never returns. This is hardly news, but the data have once again confirmed it.

We wonder if this is what Mariano Rajoy referred to on Saturday on his trip to Barcelona when he talked of "loyalty" to Catalonia. Not only has Madrid failed to show any loyalty with respect to the culture and language of our nation, but it has also reduced public spending that is necessary for the proper functioning of the economy, blocked the possibility of increasing our own resources via legal challenges and rulings, and is slowing down the possibility of further financing in a way that favors stricter control over Catalan finances. This is hurting the economy and welfare of Catalans and, indirectly, of all Spaniards.