Chivite and Pradales defend their tax agreements in the battle for regional financing

This Wednesday, the first meeting between President María Chivite (PSN) and Lehendakari Imanol Pradales (PNV) was held at the Palace of Navarra (Pamplona). They did not know each other personally, but in this first meeting the good harmony that exists between the two leaders was appreciated, both on a personal and institutional level. The two autonomous governments are coalitions and, in them, the PSOE and the PNV are main partners – in Navarra, the PNV is part of a larger coalition, Geroa Bai. This is a first circumstance that favours inter-institutional relations between the two communities, in addition to cultural, linguistic and economic proximity. Navarra and the Basque Country have a very industrial economy and their own financing system: the Navarrese economic agreement and the Basque agreement. Both tools are protected by the Spanish Constitution. However, they have returned to the fore following the controversy over the special financing agreed with Catalonia and the two leaders have staunchly defended their respective systems.

The president of Navarre has claimed that both the Navarrese agreement and the Basque agreement are “solidarity tools” and has defended the need to educate about this issue. The lehendakari has also insisted that the two instruments are “constitutionally” protected and that the European Union has “valued” them. The community defends the solidarity of these instruments, for example, in the annual contribution that Navarre makes to the Government of Spain it includes its participation in the inter-territorial compensation funds, its contribution to the payment of the state debt and the expenses for the powers not assumed. This contribution is calculated based on the contribution of the Navarrese economy to the state GDP (1.6%) and not of the population (Navarra accounts for 1.35%). The Basque agreement also has its own solidarity agreement and has a risk component because the central government does not participate in the collection obtained by the provincial councils, but neither does it cover the public expenses of the community if these revenues are not sufficient. Furthermore, the so-called quota, the annual contribution of the Basque Country to the national coffers, is not calculated solely according to the income collected in the community, but also depends on other variables, such as expenses for powers not assumed (for example, customs).

Opening the melon of financing

Chivite has expressed her support for opening the debate on regional financing, but doubts the effectiveness of applying the same system in all regions: “I don’t know what the one-size-fits-all proposal is. We have an agreed financing model, included in the Constitution and endorsed by the European institutions. We understand that other communities, such as the Canary Islands, have unique financing, and I understand that a debate should be opened on the financing model, but the system has not been able to be renewed even with absolute majorities of the Popular Party.”

However, Pradales has not commented on the matter. He has pointed out that his “occupation and concern has to do with ensuring that the Basque agreement is respected, that it is not used as a weapon in a debate that the State must maintain with the rest of the autonomous communities of the common regime and that its solidarity, its uniqueness, the scrupulous management and the rigor with which we have historically worked to never request a bailout from the State are respected.”

Beyond the regional financing system, other issues were discussed at the meeting, such as the Cantabrian-Mediterranean High Speed ​​Corridor. The Ministry of Transport is currently preparing the technical reports that will determine the final route with which the TAV will connect to the Basque Y and, at the moment, there are two options: via Ezkio or via Vitoria. There are also opinions for all tastes. However, neither Chivite nor Pradales wanted to express their preference and have reiterated that they will wait to have all the technical documentation before deciding. This decision, they have insisted, will be adopted jointly by Navarra, Euskadi and the central Government.