The proposed Hard Rock leisure resort, the expansion of Barcelona airport. Two of the issues that have caused most division between Catalan political parties over the last year - and indeed, played their part in the early calling of the election to the Catalan Parliament on May 12th. Hardly surprising, then, that these were among the most contested issues, in the only economic debate offered by any media outlet ahead of Catalonia's election. ElNacional.cat's business brand ON ECONOMIA this Monday brought six political parties together in a debate entitled "Economic model, country model': Alícia Romero for the Catalan Socialists (PSC), Natàlia Mas for the Republican Left (ERC), Josep Rull for Together for Catalonia (Junts), Laure Vega for the pro-independence left-wing CUP, Joan Carles Gallego for the alternative left Comuns-Sumar and Santi Rodríguez for the conservative People's Party (PP), in a debate at our studio moderated by Xavier Alegret Vélez, deputy director of ON Economia.
Six parties that showed their economic discrepancies, as well as a lack of specific policies in many areas. But there were also several points of consensus, at least in the initial diagnosis. The need to increase the supply of public housing to guarantee access to homes at more affordable prices, to provide more economic resources for the finances of the government of the Generalitat through a new financing model, and to reduce and simplify bureaucracy and regulations to attract companies and investments were the main points were parties found common ground. On this last point, Junts's Josep Rull proposed that when dealing with the administration, "positive administrative silence should prevail" for companies. For their part, both the PSC and PP emphasised that companies "want stability".
Agreement on need for more public housing
But the differences between parties appeared in the "how". For example, in the case of housing, considered the main problem by much of the public, all parties showed themselves in favour of building more flats, except the CUP - which believes that it is not more that are needed, but rather, the need is to facilitate access. Housing, in fact, was one of the few points where the parties had specific proposals. Alicia Romero pledged that the PSC would build 50,000 homes "in the coming years" and offer 50,000 more through purchase, remodelling and upgrading. Mas (ERC), who is the current Catalan economy minister, recalled the recent agreement reached with the European Investment Bank (EBI) to allocate 500 million euros to housing in Spain - to be transformed into 10,000 rental flats over the next three years. Rull, on the other hand, recalled that the recent Spanish housing law, promoted by the PSOE with the support of ERC, removes competencies from Catalonia, and came out against imposing price caps, asserting that it was better to reactivate the sector by shortening timings and urban planning processes. The PP, similarly, wants to remove obstacles, and asserts that the Catalan administration needs to execute the power it has and expand the public housing supply. Commons-Sumar and the CUP also propose policies and tax measures so that empty flats, in the hands of large landlords and vulture funds, are put on the market. For the Comuns' Joan Carles Gallego, as for ERC's Natàlia Mas, the proliferation of apartments for tourist use and seasonal rental limits the overall supply, and prices and regulation is needed.
Junts and PP propose to lower taxes
Another point of consensus was the need for Catalonia to obtain access to more resources, through a new autonomous community funding model that is fairer, more transparent and that guarantees regularity. For ERC and Junts, the key is for Catalonia to collect 100% of the taxes paid in its territory and then reach agreement with Madrid on the share it pays to the Spanish state in solidarity - a model similar to those of the Basque Country and Navarra. The PSC and Comuns also recall that, while a new model is being agreed, the tax consortium plan, as already approved in Catalonia's Statute of Autonomy but not implemented, could be set in motion. The PP is the only party that refers to the funding model from a Spanish point of view: "It can be improved, yes, because there are autonomous communities that do not cover essential public services. Funding needs to be improved, but without privileges", said Rodriguez, the opposite of what the conservatives advocate in the two Basque territories. The Socialists' Romero appealed to the "unity" of Catalonia on the points of consensus to negotiate the new model with the state.
In terms of taxation, the left-right axis among parties predominated over the national (Catalonia-Spain) axis. Thus, both the centre-left PSC and, more clearly, the alternative left Comuns-Sumar recalled that the fiscal pressure in Catalonia - that is, the relation between the tax take and the GDP - is below the European average. ERC did not commit on this front but rather recalled that under its leadership no tax has been raised and personal income tax in some sections has fallen. Junts and PP, on the other hand, were in favour of lowering taxation levels. For Junts, Rull emphasized eliminating taxes on inheritance, wealth, reducing personal income tax and "promoting a shake-up of corporate tax". The PP's Rodriguez also asked for personal income tax be reduced for incomes below 45,000 euros. For its part, the CUP was in favour of raising taxes "for the top 10% of incomes and the wealthiest companies".
Clashes over the airport and Hard Rock
The biggest discrepancies and disputes arrived in the section on infrastructure. The PSC and Junts agreed that the Barcelona-El Prat airport needs to be expanded to become an international hub, the complete opposite of the Comuns and the CUP, which prioritize environmental sustainability. The Comuns' Gallego was more in favour of a model that connects the three main Catalan airports (Barcelona, Girona and Tarragona) and favours territorial rebalancing. For ERC, Natàlia Mas defends that the proposal that the current Generalitat government has recently put on the table, endorsed by several experts, is the most "balanced", while the PP's Santi Rodriguez reminded her that "everyone has rejected it". The Junts candidacy's Rull recalled that just as important as expanding the infrastructure is being able to manage it so that "international flights and the stopovers they make do not depend on Madrid".
As for the Hard Rock gambling and leisure complex, ERC accused both the PSC and Junts of making this year's budget depend on this project, a centre that the Republicans themselves say they reject, as do the CUP and Commons-Sumar. For the PSC, it is about giving legal certainty to companies, not about changing the rules of the game in the middle, and Alicia Romero recalled that this project was started by Convergència - predecessor to Junts - in 2012, and whose license was awarded by ERC when it held the economic vice-presidency of the Generalitat. ERC said that it was in favour as long as the tax limit on the project is modified upwards.