Key to the safe? The new Catalan financing model explained
Durada: 22 min
28/09/2024
This summer, the Catalan Socialists agreed to a deal with the pro-independence Esquerra Republicana to create a new financing model in Catalonia, to be implemented in 2026. The deal would give Catalonia more economic independence and create what some call a "fairer" system. Other, more critical voices have called it "poison for the welfare state". But what exactly does this new model entail and how does it differ from the current tax system?Lorcan Doherty and Lea Beliaeva Bander break down everything you need to know about the fiscal model, from what the changes will mean for Catalonia and Spain to how Spanish and Catalan politicians have reacted. Núria Bosch and Maite Vilalta, the co-directors of the Fiscal Federalism Observatory at the Barcelona Institute of Economics explain how the new Catalan model compares to federal tax systems in other countries. The Catalan phrase of the week is "la clau de la caixa," which means "the key to the safe".