Thursday, 31 May 2012
When Catalonia sneezes.. the crisis of regionalism
Catalonia, Spain's richest region, appealed last week to the Spanish government for assistance in meeting its short-term liabilities http://www.telegraph.co.uk/finance/financialcrisis/9290206/Catalonia-calls-for-help-from-central-government-to-pay-debts.html, and it is clear that the debt burden of Spain's regional governments has contributed to the emerging crisis in Spain's public finances.
So far most of the burden accountability has fallen at national level. But I raised the question last month (Does Damscheid need a Mayor - 22 April 2012) of whether the financial crisis has exposed the tension between decentralisation and fiscal responsibility. It is structural issue, and one which is an issue certainly not confined to Spain (or to Catalonia, as the attached articles make clear)
But it remains one the many answered questions about the functioning of the EU
Posted by Mike Burnett at 17:07