Catalonias Split With Spain Is About Identity, Not Just Money

As recently as July, secessionists in Catalonia seemed to be in retreat. Spain was the fastest-growing of continental Europe’s big four economies, creating jobs at a rapid clip. A poll that month by the Catalan government showed that support for independence had fallen to 35 percent, its lowest level since 2012. It appeared that Enric Millo, the Spanish government’s representative in Catalonia, might have been right when he predicted in 2012 that once removed from the flame of financial crisis, “separatism would sink like a soufflé.”

What’s sinking instead is the reputation of Prime Minister Mariano Rajoy. Acting on his orders, Spanish police used batons and rubber bullets against those who took part in an Oct. 1 referendum on independence that Spain’s constitutional court had declared illegal. Hundreds were injured in the melees.

The Catalan government claimed that despite Madrid’s attempts at suppression, 2.3 million people voted—about 42 percent of the total electorate—and about 90 percent of them chose to separate from Spain. The Spanish government cast doubt on the result, pointing out that the referendum, in addition to being illegal, lacked certified voter lists and wasn’t overseen by an official election board. And many of those who opposed secession heeded Madrid’s reminder that the vote was illegal. Spain’s King Felipe VI said in a televised address that separatist leaders showed “unacceptable” disloyalty.

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Photographer: Juan Teixeira/Redux

The groundswell of separatist sentiment in Catalonia has shown Spain and the world that money isn’t everything. A strengthening economy may have quelled Catalan nationalism a bit, but the desire many have for independence had deeper sources and never went away. Then Rajoy, playing to his conservative base, badly miscalculated. He thought a show of force would keep voters at home. But his attempt to stop the vote just pushed more Catalans into the separatist camp. “In the longer term, the divisions in Spain become more entrenched,” says Antonio Barroso, a political risk analyst at Teneo Intelligence in London.

Economics probably did matter in Catalonia, just not in the way that Spanish optimists were thinking. The reality is that the region hasn’t fully recovered from the global financial crisis, which pushed the economy into a double-dip recession and sent unemployment in the so-called autonomous community as high as 24 percent. (It’s still more than 13 percent.) “The financial crisis brought to the fore the fact that so much of our money is transferred” to the central government, says Jordi Galí of Barcelona’s Center for Research in International Economics, known by its initials in the Catalan language, CREI. “In a context of high growth and prosperity, this may be more easily forgotten. But during the crisis the Catalan government had to undertake huge cuts in services: health, education.”

The transfers issue might not have been enough to stir secessionism all by itself. After all, there’s little call in Connecticut to break away from the U.S. even though the state gives more than it gets. The difference is that the northeastern corner of Spain has its own language, traditions, and aspirations to national greatness. Its history is a seesaw of autonomy and what some see as subjugation. Catalans still commemorate the fall of Barcelona to King Philip V of Spain on Sept. 11, 1714. In 1939 the city fell to the Nationalist forces of Francisco Franco, who suppressed Catalan culture during his 36-year rule.

In recent years, independence-minded Catalans have focused their anger on a 2010 ruling by Spain’s constitutional court that erased parts of a legislative deal that accorded the region broad autonomy. In 2012 the Catalan economist Xavier Sala-I-Martin likened Spain to a possessive husband who reacts wildly when his wife asks for a divorce. “We Catalans have tried to explain during 30 years that we were uncomfortable and the replies have been no’s, scorn, indifference, and contempt. And now they’re surprised!” the Columbia University professor wrote on his blog.

The marriage is far worse now. “People are extremely disappointed, and I would say shocked, by the activities of the Spanish police,” says Giacomo Ponzetto, an Italian who teaches at CREI in Barcelona. “It was absurd, unacceptable behavior, and I would add extremely stupid.” Stupid as in self-defeating, he says. “The Catalan government was looking for this. It’s very obvious. They wanted to provoke a response.”

Like it or not, Catalonia has been very much part of Spain—not least because it’s a fifth of the national economy. It exports more to the neighboring region of Aragon than to France, and more to Madrid than to Germany or Italy, says Pankaj Ghemawat, who teaches at the New York City branch of IESE Business School, which also has campuses in Madrid and Barcelona.

Many economists think Catalonia would be worse off economically on its own. The outcome hinges on whether it would assume a share of Spain’s national debt, whether it would be permitted to join the European Union and adopt the euro, and how much it would cost to replicate services—such as defense—it gets from Madrid. Further complicating matters, Spain could throw up legal obstacles to secession. One reason many Catalans have shied from independence in the past is that they weren’t ready to take a leap into the unknown.

But the violence that marred the Oct. 1 vote has focused Catalans’ minds on issues other than euros. “At some point the economic considerations start to be irrelevant and identity becomes paramount,” says Ghemawat. On Oct. 1, he says, “we took a giant step in that direction.”

    BOTTOM LINE – A long and painful downturn fanned separatist sentiment in Catalonia, which, contrary to predictions, didn’t die down with the recovery.

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