Catalan Independence & Spain's Future Economic Collapse

[John L]

My favorite economist and political prognosticator, Dr. Walter E. Williams, points out the rank hypocrisy of certain European States and even the EU, for their attitudes on allowing regions to go their own way and seek independence.  

Independence Hypocrisy

Fallon notes the hypocrisy of Spain, Germany and Italy, as well as the entire European Union. Back in 1991, the EC -- the precursor to the EU -- "issued its conditions for recognizing the unilateral declarations of independence by states seceding from Yugoslavia and the Soviet Union." Fallon argues that these same guidelines should be applied to the states of Catalonia, Bavaria and Veneto. Isn't it double talk for members of the EU to condemn independence movements today, given that they welcomed and supported independence movements for states that were members of the communist bloc?

Catalonia, Bavaria and Veneto are relatively prosperous jurisdictions in their countries. They feel that what they get from the central governments is not worth the taxes they pay. Each wants the central government off its back. They think they could be far more prosperous on their own. That should sound familiar. Some of the motivation for secessionist movements in Europe is similar to the motivation found in the Confederacy's independence movement of the early 1860s.

Throughout most of our nation's history, the only sources of federal revenue were excise taxes and tariffs. In the 1830s, the North used its power in Congress to push through massive tariffs to fund the government. During the 1850s, tariffs amounted to 90 percent of federal revenue. The Southern states were primarily producers of agricultural products, which they exported to Europe. In return, they imported manufactured goods. These tariffs fell much harder upon the export-dependent South than they did upon the more insular North. In 1859, Southern ports paid 75 percent of federal tariff revenue. However, the majority of the tariff revenue generated was spent on projects that benefited the North.

Tariffs being a contributing cause of the Civil War is hardly ever mentioned. Using the abolition of slavery as an excuse for a war that took the lives of 620,000 Americans confers greater moral standing for the Union.

One other note here.  For years now I have been stating that the Real cause of the Secession of the Southern States was not primarily over the Slavery issue.  It was mainly over economics.  The South was shouldering the overwhelming majority of the federal government's spending in the form of protective tariffs.  And Dr. Williams is absolutely right here.  Slavery was simply the "cover page" that hid the Real Issue.  And to this day almost everyone goes around with the mistaken impression that economics had nothing to do with this.  

[Fredledingue]

No. the EU is not opposing independance of Catalonia or any other new entity.
It's the Spanish governement who is opposed. The EU has nothing to do with that.
If Spain agrees to give Catalonia independance, the EU won't be against it.

The EU didn't issued any statement for a month after the referundum. They finaly did it because nobody understood why they didn't even comment on it.
The final official EU position is that it's Spain's internal matter.

Less formaly however, they support a united Spain because for the moment there is no legal basis to recognize Catalonia as a state and because there is no agreement about independance between Spain and Catalaonia.
Should Catalonia and Spain reach an agreement of secession, the EU will not do anything against.

Same with any other independantist movements. So far there is no reason to recognize any new country in Europe.

The EU also never recognized the splitting of Yugoslavia.
There was a war that last 10 years and killed tens of thousands. The EU and its memeber states just recognized the countries which emerged from this conflict.

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The Catalonian independantists won the snap elections by a landslide, inflicting an humiliating defeat to Rajoy. So they have more chance to obtain independance one day, but not today.

More precisely: The votes were distributed almost evenly to four parties (+- 25% each).
3 pro-independance parties and one anti-independance party.

It's not yet clear if the newly elected Catalonian governement will claim independance again.
Two pro-independance parties are for a more rational approach. Only one party is for open confrontation.

We will see what will happen.

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The economic argument is not valid because it will cost them more to be on their own than the tax revenue difference they can gain.
The proportion of amount lost by staying is too small to make a valid point for independance.

Catalonians have seldom if ever mentioned economics for they claim of independance.

You will just have two governements spending more than one.

Also Catalonia will start as one of the most indebted country in the EU. Not only will they inherit Spain's debt, proportionaly but they will be in debt toward Spain for being granted independance.