Study shows Catalans have 30% less purchasing power than Extremadura
In purchasing power parity, Catalans are also 8.5% poorer than the average Spaniard, according to the report
BarcelonaA study by the Catalan Ministry of Economy that analyzes for the first time the purchasing power of Spain’s autonomous regions --following the method of buying power parity-- indicates that a resident of Catalonia has 8.5% less purchasing power than the Spanish average, and nearly 30% less than a resident of Extremadura.
The Minister of Economy, Andreu Mas-Colell, believes that purchasing power should be taken into account in the new regional funding model, which in theory will begin to be negotiated in the coming months.
Mas-Colell said that, taking into account purchasing power, Madrid and Catalonia happen to be in positions 1 and 3 for contributions to the tax system, while dropping to the bottom of the list --at 15 and 14, respectively-- in terms of resources received, without taking into account the two regions with special financial agreements (the Basque Country and Navarre). The minister has proposed an agreement with the Madrid region to jointly negotiate the new funding model.
