Download Basque Institutional and Financial Framework

Basque institutional and financial framework
Focusing on local institutions and their financial system
1.
Historical snapshot
-
the Tree of Gernika
the power of identity
Basque code of laws, “Fueros”
history determining the current framework
2.
Framework; recognition of historical agreements
3.
Institutional reference model
- Powers
- Funding
4.
Local institutions in the global framework
5.
Conclussions
Basque institutional and financial framework
Historical snapshot: the power of identity.
The town of Gernika was bombed in
1936 by german (Condor) and italian
(Legionary) airforce guided by
Franco’s rebel forces.
Basque institutional and financial framework
Historical snapshot: the Tree of Gernika.
Representatives from different
zones in Biscay, used to meet
under the tree of Gernika to take
decisions like those that are taken in
the current parliaments (1053 first
documented reference).
Basque institutional and financial framework
Historical snapshot: Basque code of laws, “Fueros”.
In 1476 “Ferdinand the Catholic”
swears the Fueros under the tree of
Gernika.
Biscayans kiss the hand of the Lord
of Biscay, Ferdinand, having sworn
the Fueros.
Basque institutional and financial framework
Historical snapshot: history determining the current situation
1053
Basque Usage and Habits
reflected in General Assemblies
1454
“Fueros” Basque Code of Laws
1878
Economical Agreement
1936
1975
Franco’s dictatorship
1979
1980
Spanish Constitution recognizes
Basque historical rights:
• Statute of Gernika
• Provincial Governments
• Provincial Norms
• Provincial Assemblies
Updating of the Economical
Agreement and its Quota
Basque institutional and financial framework
Framework: recognition of historical agreements.
Statute of Autonomy
Establishes the capacity of self-government
and regulates the powers of the Basque
Country and its institutional structure.
Basque Economical Agreement
Three main agreements: the Statute of Autonomy
(Powers), Economical Agreement (tax collection)
and Quota (unilateral risk).
Autonomy
Statute (1979)
Gives the ability to the Basque Country
to collect and manage all taxes
through provincial governments.
Quota
The amount to be paid by the Basque
Country to finance the powers not
delegated yet. It fixes a percentage,
6.24%, of the global budget of the Spanish
State, and supposes a unilateral risk for
Basque institutions.
Economic
Agreement
(1980)
Quota
Spanish
Constitution
(1978)
Basque institutional and financial framework
Institutional benchmark model; powers
Local Governments
and Councils
Provincial Governments
and Assemblies
Basque Government
and Parliaments
Urban
Social care
maintenance (dependence)
Tax
collection
Provincial
transports
Health Care Universities
and Education
System
Culture &
Sport
Local
taxes
Roads and Social Care
Highways
(elderly)
Security
Employment
€
Spanish Government
and Parliaments
EU Affairs
Airports
and Ports
Pensions
Defence
Education
Infrastructure
Water
Supply
Urban
planning
Refuse and
recycling
Economical Agriculture
promotion
Industrial Environment Social care
General
policies
(exclusion) infrastructure
Local
Police
Basque institutional and financial framework
Institutional reference model; funding
Tax collection power
Distribution of the collected taxes (Provincial Tax Offices)
The Economic Agreement and the Statute of
Autonomy empowered the provincial authorities to
levy and manage taxes for each province.
4
Quota payment
5
Regardless of the state budget and the weight of
the Basque Country in state GDP, the provincial
tax offices pay the 6.24% of total budget.
1
3
Basque Financial
Committee
Distribution
The Basque Financial Committee meets to agree
the distribution of the incomes for each
institutional level, approximately 70% goes to the
Basque Government, 18% to the Provincial
Authorities and 12% to the Municipalities.
1
2
Municipalities
Provincial Governments
Madrid
Basque Government
Tax collection by
Provincial Tax Offices
2
6.24% Quota
to the State
3
70% Basque
Government
12% Municipalities
4
5
18% Provincial
Authorities
Basque institutional and financial framework
Local institutions in the global framework
Basque Financial Committee
The Basque Country Local
Institutions Act closes the gap in the This council decides how to distribute
collected taxes for each institutional level.
institutional architecture.
3
3
3
Local Government Committee
This council works as an early warning
system for local self-government. Whenever
a bill affects to the local autonomy, the
council issues an early warning.
12
Board of Managers
of EUDEL
Representatives of the Executive
carry one common mandate to the
cooperation bodies.
Local Public Policies Council
The committee meets when a bill is proposed
to provide a local perspective on it.
6
6
6
Basque Population
2,164,311 inhabitants
6
(2%)
> 50,000 inhab.
36
10,000 - 50,000 inhab.
(14%)
63
(25%) 2,000 - 10,000 inhab.
146 < 2,000 inhab.
(58%)
251 local institutions
Grouping of
municipalities
Basque institutional and financial framework
Conclussions
Expenditure (per inhab.)
1
2
3
Funding
Debt (per inhab.)
Competences
Consolidated
Framework
67,223 MM €
Total taxes collection
13,080 MM €
Unemployment
Income per inhab. (%EU)
Identity
274 €
Basque GDP
Public debt (%GDP)
Cooperation bodies
1,100 €
15,6%
12%
119 %
Investment on R&D
2.03 %
Risk of poverty rate
10.9 %
Equality index (EIGE)
58.5 %
From the singularity to the identity, from the
identity to the union, cooperation and
empowerment.
Basque institutional and financial framework
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