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Posts Tagged ‘spain’

That’s the title of a very good article by Princeton political scientist Carles Boix and J.C. Major. The article provides background to the Catalan self-determination movement but also discusses recent developments and the reasons for them. One takeaway is the enormous role that the Spanish government’s response to the last Catalan autonomy statute, essentially gutting it, played in provoking the growth of the independence movement. As I noted in a piece in Electoral Studies 10 years ago, when the central government spikes decentralization, secessionists strengthen, but when a referendum on independence or autonomy fails (the failure being internal rather than external in origin), secessionists weaken. The article also contains important information on what the Catalan government plans to do if the central government forbids it to hold a referendum, as seems likely. I won’t spoil it; just read the article.

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1) Polls continue to point to a significant “yes” victory in a future referendum on independence in Catalonia.

2) If the Catalan government backs down from a referendum, even if the Constitutional Court declares it illegal, as it certainly will, it will pay a heavy price at the polls. Therefore, it is locked into holding a referendum, unless it can negotiate a sufficiently advantageous fiscal settlement with the Spanish state. A negotiated settlement averting a referendum remains the most likely outcome, although p<0.5.

3) Some Catalans think the Socialist Party of Catalonia, which is linked with the main Spanish opposition party (PSOE) and has been trying to straddle the self-determination issue, will implode soon over the issue.

4) Catalonia and Spain may both be more viable as separate states than together. Spain's political economy is dysfunctional. Catalonia’s would not be (the largest Catalan party is centrist with some classical liberal elements). A functional state can carry a larger debt burden than a dysfunctional one. Therefore, the European Union might pressure Spain to accept a post-referendum settlement by which Catalonia is allowed to go free while taking on a disproportionate share of Spain’s debt. (On this point I am indebted to Jaume Lopez Hernandez of the Universitat Pompeu Fabra.) This is the second most likely outcome.

5) Spain’s threat to arrest Catalan leaders and prevent secession by force is not credible. (Although some autonomists and secessionists in Spain insist that the central government would indeed send in the tanks.) Therefore, it is unlikely that the Catalan government will be deterred. A “yes” vote followed by suppression is the least likely outcome, even less likely than a “no” vote.

6) If the Catalan referendum is held, regardless of the result, it would set a powerful precedent for Basque nationalists. The precedent is not that secession is easy or desirable, but that the possible legal framework will be recognized. The Basque Premier backed down from holding a referendum on his “Ibarretxe Plan” for free association after threats of arrest and a negative vote in the Spanish Cortes. The reason why I argued, in this interview, that Ibarretxe should have gone ahead with the referendum is not so much that I endorsed the Plan itself (on which I am agnostic), but that I fear his backing down set an unfavorable precedent for the “right to decide,” which I do favor.

7) Nevertheless, even if Catalonia secedes, the Basque Country Autonomous Community is unlikely to follow, at least right away. Pan-Basque independentists are a powerful force and would insist on bringing along Navarre (and later the French Basque provinces). But Navarre would vote “no” in a referendum held today or at any time in the near future. No other region of Spain is likely to hold a referendum either, and thus there is likely to be no “harmful precedent” for secession or “contagion” from Catalan secession.

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If you see corruption in the upper tiers of government as a major problem for an economy’s health in the long run (and the balance of evidence suggests that it is, at least at high levels in capitalist countries), then externally imposed austerity might be the only way to root it out. Syracuse prof Glyn Morgan passes along this story from Spain:

Rato, Castellanos and others jointly own a commercial lot near Madrid that is leased to a third party, according to Ayala’s Jan. 10 statement to the court. They also controlled a company together while Rato, 64, was running Bankia, Ayala said.

At the same time, Lazard billed Bankia 9.2 million euros ($12 million) for work either assigned or executed during Rato’s 27-month tenure at the bank, court documents show.

Their relationship exemplifies how a network of leaders from the governing People’s Party helped their associates among the financial elite to profit while the country’s savings banks, known as cajas, racked up losses. That toxic combination flourished during the boom fueled by Spain’s entry into the euro in 1999 and served to deepen the crash that resulted in a 41 billion-euro bailout of Spanish lenders, according to Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute for International Economics in Washington.

Whether harsh spending cuts are a good idea or not for countries like Spain, Italy, and Greece depends in part on how one values the long run versus the short run. Also from the story:

“The things that we need to do to make Spain work require pulling the rug out from under the core interests of everyone” in power, Ken Dubin, a political scientist who teaches in Madrid at IE business school and Carlos III University, said in a May 22 telephone interview. “This is a political racket run for the benefit of politicians who suck the marrow out of the citizenry.”

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Catalonia Update

The Monkey Cage is carrying an interesting update on the Catalonia situation from Duke political scientist Laia Balcells. Catalonia is heading to elections, called by the premier Artur Mas, from the Convergence and Unity (CiU) party, a moderate Catalan nationalist party on the center-right. The CiU has always favored a “right to self-determination” for Catalonia, but now they favor holding a referendum on independence, unless Spain agrees to a new fiscal pact giving Catalonia broader powers.

She lays out three possible post-election scenarios:

1. A secessionist process scenario: a combination of Catalan nationalist parties (e.g. CiU ERC; CiUERC+SI) obtains a majority of the seats. Mas calls for a referendum. Despite the fact that the referendum is not likely to be recognized by Spain, it gives democratic legitimacy to the self-determination process. The medium-term outcome of this path is highly unpredictable at this point: Rajoy is not Cameron, and the PP government is making threats to deter Mas from the referendum (e.g. declaring it illegal). Some members of the Spanish military have even mentioned armed intervention in Catalonia to defend the “inviolable unity of the Spanish State”. The EU, on its end, delivers ambiguous messages regarding the permanence of Catalonia in the union if there is a breakup.

2. A fiscal pact scenario: CiU obtains a majority of the seats. Mas makes a credible threat of a self-determination referendum to Rajoy, who concedes on an agreement that improves Catalania’s fiscal capacities. CiU then renounces its secessionist demands, and ERC and other minority parties remain as the only ones asking for independence.

3. A stalemate/centralization scenario: Catalan nationalists do not obtain sufficient support in the elections and things remain at a standstill. Mas has a hard time governing given the economic and political gridlock. This scenario would probably imply asking for another bailout to the Spanish state and new attempts at centralization. (Given the results of the polls, this is however the least likely scenario)

Let’s look down the game tree to see what is likely to happen.

I think we can rule out 3 as a likely scenario, if the polls are right. Apparently 57% of poll respondents now say they would vote “yes” in an independence referendum and only 20% no. That’s a dramatic increase in secessionist sentiment even over the last few months. Catalan nationalist parties have frequently won significant majorities in the past, and I see no reason why they would not in the upcoming election with the radical turn in Catalan opinion.

So what happens after the election if nationalists win a majority? I think it likely that (more…)

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A pro-secession protest in Catalonia on September 11th brought out 8% of the region’s entire population, The Economist reports. Opinion polls have support for independence at about half of the electorate, possibly more. The moderate nationalists in power in Catalonia have even radicalized their platform. In the past, Convergence and Unity was a moderate nationalist, center-right party coalition dedicated to greater autonomy for Catalonia and a recognized right to self-determination. While refusing to rule out independence in the long run, they rejected secession as attainable or desirable in the near term. Now, they explicitly advocate eventual sovereignty (effectively, independence within the European Union).

In addition to Convergence and Unity, there has been, since the mid-1980s, a significant independentist strain within Catalan nationalism. The Catalan Republican Left (ERC) has been the main exponent of this current. In the early 2000’s, ERC actually formed the regional administration along with the regional Socialists. They helped put together Catalonia’s new autonomy statute that, among other things, defines Catalonia as a “nation” rather than a “nationality” for the first time. (Yes, this sort of symbolism seems to matter to nationalist voters.) Over time, ERC support has been growing, and so has broader support for independence. Thus, this most recent outbreak is nothing new, rather the last expression of an upwelling of  “fed-up nationalism” that has been going on for at least a decade.

In one sense, Catalan nationalism is easily explicable as the (more…)

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