Catalonia and the perils of fiscal redistribution
Self-determination is all very well; but what if it masks fiscal selfishness?
POPULISM is the weapon not just of the downtrodden. As the crisis in Catalonia demonstrates, the rich have economic anxieties of their own. Catalonia has an identity distinct, in important ways, from that of the rest of Spain. But the recent drive for independence has been energised by anger over the flow of fiscal redistribution from rich Catalans to their countrymen: people seen, in parts of the restless north-east, as thankless and lazy as well as alien. Paradoxically, globalisation has inflamed separatism around the world by raising the question Catalans now confront: to whom, exactly, do we owe a sense of social responsibility?
This article appeared in the Finance & economics section of the print edition under the headline “Who is my neighbour?”
Finance & economics November 4th 2017
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