Spanish fiscal federalism at the crossroad: A survey

Xoaquín Fernández Leiceaga, Santiago Lago Peñas and Alberto Vaquero García
Authors registered in the RePEc Author Service: Santiago Lago-Peñas

No 1601, Working Papers. Collection A: Public economics, governance and decentralization from Universidade de Vigo, GEN - Governance and Economics research Network

Abstract: In just over three decades Spain became one of the most decentralized countries in the world, at least in the tax area. This paper aims to conduct a detailed analysis of this unplanned process, showing the successful aspects, but also its shortcomings and failures. Furthermore, this analysis will also help to understand current political tensions in Catalonia, and, to a lesser extent, the Basque Country. Our second aim is to review the way in which the Spanish sub-central levels of government have responded to the so-called “great recession”. Spain is a good laboratory for what actually works and what does not in the area of stability and fiscal sustainability in decentralized states, for two reasons. First, it is by far the country which has suffered the brunt of the economic and financial crisis most acutely among those with a federal structure. And second, subsequent different solutions for tackling the fiscal crisis of sub-central governments have been tested.

Keywords: Fiscal Federalism; decentralization; fiscal stability; intergovernmental relations; Spain. (search for similar items in EconPapers)
JEL-codes: H70 H71 H72 H73 H74 H77 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016-01
New Economics Papers: this item is included in nep-eur, nep-tre and nep-ure
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http://infogen.webs.uvigo.es/WP/WP1601.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:gov:wpaper:1601

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