Urkullu defends the Basque funding model as a reference for all autonomies



Iñigo Urkullu

The Lehendakari, Iñigo Urkullu, in the Basque Parliament. DAVID AGUILAR / EFE

The Lehendakari, Iñigo Urkullu, has defended the Basque Economic Agreement as a model of regional financing because, he says , “it is not a privilege regime”, but “a fair and solidary system”, which “can be a reference for the financing system of the communities. “

Urkullu makes these reflections in an article published on Monday by the newspaper El País, where, under the title of unilateral risk and solidarity, the Lehendakari argues that the Economic Agreement and the Basque quota “come from a historical relationship based on the pact and the fiscal and financial self-responsibility “and constitute” an efficient and transparent system when managing resources “.

He believes that “the really constructive” when establishing a model for the rest of the autonomous communities would “analyze” the Basque Concert as “a reference that allows us to move forward in a new decentralized system of financing that is more efficient, fair and supportive” .

To reach this conclusion, the Lehendakari reviews the historical origins of the Concert – “instrument of economic and financial relationship between Euskadi and the State since 1878″ – and how the 1978 Constitution recovered and recognized the Historical Rights ” as a singularity and way of anchoring Basque self-government in a plural state model “.

It emphasizes that the Concert is endorsed by the European Union and that it also has the “unanimous support of the Basque institutions”.

“Nothing we ask the State”

According to Urkullu, the Concert is “a transparent fiscal regime”, whose effectiveness “depends on an adequate exercise of responsibility, budgetary rigor and financial equilibrium”, and stresses that it is not a “privilege” compared to the rest of the autonomy because “the Basques we pay our competitions with what we collect, we do not ask the State, “he stresses.

It also recalls the obligation and priority to provide the so-called Basque quota that is intended “both to cover the general burdens of the State, its basic functions, and to contribute to the Inter-territorial Compensation Fund” and “to compensate the less favored autonomous communities economically or more deficient “.

The Basques pay our skills with what we collect “Euskadi contributes to the State’s competencies with 6.24% of all expenses related to competitions’ not assumed” by the Basque Country, the Basque president maintains in his article, and assures that the Concert “does not favor the reduction of taxes nor does it make Euskadi a tax haven”.

He even recalls that the average fiscal pressure in this region “has always been superior to the Spanish since 1981″ and that it follows “by more than three points”.

According to Urkullu, the Concert is “a system of unilateral risk because Euskadi depends on its own capacity to collect taxes” and the quota is “the first obligation” of this Community, “regardless of the evolution of the collection” and depending on a State calculation.

The amount of 6.24% of the “non-assumed charges” that Euskadi pays to the State is for the Lehendakari much higher than the “relative weight of the Basque population, which represents 4.67% of the total” · and is “above of the relative weight of the wealth or participation in the GDP, which is at 6% “and is the same as that contributed to the Inter-territorial Compensation Fund,” he adds.

The Lehendakari emphasizes that the quota is a system “backed, negotiated and agreed” for years and an “absolutely transparent” procedure that involves “a ‘point of welding’ between Euskadi and the State.”