The Galician Economic Forum estimates that the Galician community could lose up to 634 million euros in a Concert for Catalonia scenario in which this community would not make any solidarity contribution to the system. This is reflected in the study ‘The economic impact for Galicia of the extension of two concert systems, presented by economists Santiago Lago and Xoaquín Fernández Leiceaga in which different simulations are carried out on possible scenarios depending on the degree of solidarity that Catalonia would provide after the pact between PSC and ERC.
In this way, the fork goes from one level of solidarity of Catalonia from 0% (with an impact for Galicia of 634.1 million) to a solidarity level of 100% (with an impact of zero euros because similar to the current model.
The study also includes levels of Catalan solidarity in this concert of: 25% (impact of 475.6 million for Galicia), 50% (317 million) and 75% (158.5 million). These figures are calculated with 2022 datawithout taking into account subsequent inflation.
Additionally, the study carries out a theoretical simulation exercise on what would happen if the concert model were transferred to all communities. In the event that the autonomy collected all taxes and made a contribution based on GDP, the damage caused to Galicia would amount to a loss of 2.128 million on the current model.
Precisely, last week, Facenda’s advisor, Miguel Corgoswarned that Catalonia’s exit from the common regime would result in a loss of 628 million euros for Galicia, a figure similar to that presented Thursday by the Economic Forum.
Common model
The director of the Economic Forum, Santiago Lago, describes this document as “very necessary” and specifies that this entity “does not enter into the political dimension, it enters into the figures”. Lago thus warns that “any model that cuts redistribution and solidarity from the current system is not good for Galicia”. in financial terms.
He emphasizes that this is normal because “the fiscal capacity of Galicia “is less than 90% of the average” and the services cost more than the average, about 110%. In summary, Santiago Lago and Xaquín Fernández Leiceaga agree that what harms Galicia the least is if it follows the common model.
For his part, Fernández Leiceaga, who is also a member of the current executive of the PSdeG and was a candidate for the Xunta for the Galician Socialists, showed himself review with a concert for Catalonia. He assures that he finds it “very good” that Illa was sworn in as president of the Generalitat, but “not the agreement”, even if it is part of the political options.
Given that the text of the agreement between the PSC and the ERC “is subject to interpretation” and that it is not possible to know “what it will be”, the Forum chose to proceed different simulations depending on how it would be applied.
You delete
About a generalized extension of the concert modelLeiceaga warns that “we have no interest in achieving a model of this type” when Galicia loses up to 2.128 million, so he says that “those who defend it will have to explain why they do it”, he said. -he criticized
Asked whether a reduction would benefit Galicia, Santiago Lago expressed the opinion that there could be two possible levels. At the first level too,” he said. In a second scenario, he commits to similar reductions per capita so that there is no discrimination between communities.
