Macroeconomic effects of Catalan fiscal deficit with the Spanish state (2002-2010)

Jordi Pons-i-Novell and Ramon Tremosa-i-Balcells

Applied Economics, 2005, vol. 37, issue 13, 1455-1463

Abstract: According to Eurostat Regional data for the period 1996-1999 Catalan convergence with the EU's most dynamic regions has been blocked. In this paper, with the aim to analyse how Catalonia can converge with the EU in the forthcoming years, some simulations of Catalan GDP growth in the 2010 horizon have been estimated, considering different reduction scenarios of Catalan fiscal deficit with the Spanish state (between 7-9% of Catalan yearly GDP). Looking at the results obtained, the current Catalan stagnation will persist for the next few years if the above-mentioned fiscal deficit does not change. Thus, Catalonia will only converge with most dynamic EU regions if there is a significant reduction of Catalan fiscal deficit with the Spanish state.

Date: 2005
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DOI: 10.1080/00036840500109134

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