Catalonia’s Economy, Society, and Territorial Organization in the EU

Society and Economy in Catalonia within the EU

The European society is a post-industrial society, where the services sector generates more jobs and wealth. Post-industrial economies have evolved from industry-based to service-based economies. This process is known as the tertiarization of the economy. The transition to this new society began with the emergence of new information and communication technologies (ICT). The domain of information and the development of creativity are key elements in this new economy and society.

The GDP per inhabitant in Catalonia in 2007 was 30% higher than the EU average. The rate of GDP growth in Catalonia is usually greater than the whole of the EU, and should be equal to or slightly lower than the GDP of the whole state. Another important indicator of a country’s economic development is the volume of exports and the annual increase (71% of exports were made within the EU itself). The strategic situation is also positive. However, indicators show that we are below the European average in important aspects: first, public spending on education as a percentage of GDP. The second indicator is the gross expenditure on research and development (R&D), one of the key sectors of most advanced countries. Unemployment is also an important indicator.

Catalan Economy in the Spanish Context

In the period 1850-1950, Spain was a leading region thanks to its industrialization. In 1979, Catalonia regained its self-governance. Catalonia holds the 4th place in PPP GDP per sq CAAC (2007), contributing 19% of the national GDP and 26% of exports. The EU has reduced economic and social differences among Spanish regions with structural and cohesion funds and an inter-territorial compensation fund.

Spanish Economy in the Context of the EU and the World

Spain is among the leading countries of the EU in terms of economic output, with a tendency to grow above the average. It is the fifth largest EU economy, after Germany, France, the United Kingdom, and Italy. Spain has one of the highest rates of unemployment, particularly affecting women and young people under 25. Another aspect to consider is inflation, the overall increase in prices, usually measured with the CPI (consumer price index, harmonized with the EU). The causes are: price increases in petroleum products and raw materials such as cement or steel in international markets. This is caused by increased demand, but also by speculative activities in stock markets. When these prices rise, inflation increases, and the more dependent a state is on imports from abroad, the more inflation will increase.

Spanish foreign trade is mostly carried out with the rest of the EU, accounting for 59.1% of imports and 69.3% of exports, with more trade with France, Germany, Italy, the United Kingdom, and Portugal. Spain is a country issuing equity through the activity of its multinational companies, and is the second world power in terms of tourist arrivals. Spain is the eleventh economic power in the world, in terms of GDP by purchasing power parity or PPP.

Delineation of Spain: Borders and Territorial Disputes

The surface of Spain is 505,990 km², including the peninsula, the Balearic Islands, and possessions in northern Africa. The Kingdom is historically significant as a bridge between Europe and the African continent, with remarkable political and social significance. Part of the national territory includes the airspace and waters, which is a strip of sea 12 nautical miles around the coasts. Spain has a 2,032 km border with 5 states. There are some border disputes: On the border with France, the enclave of Llívia, a town belonging to Spain, is totally surrounded by French territory, but is internationally accepted and not subject to any discussion. The overseas territory of Gibraltar is a territory of the British Crown, which came into their hands during the War of Spanish Succession. The residents have rejected a proposal for co-sovereignty. Olivenza, a town with Portuguese culture in the province of Badajoz, on the banks of the Guadiana, is not recognized by Portugal as Spanish territory. Ceuta and Melilla, the Peñón de Vélez de la Gomera, and the islands and rocks of Alhucemas and Chafarinas are claimed by Morocco because of their location in African territory, but these spots were transferred to the Kingdom of Spain, which considers itself the legitimate owner.

One consequence of Spain’s political position between Europe and Africa is that it has become an external EU border. The Schengen Area removed borders between EU states, now known as internal borders. There is increased vigilance at the borders with countries outside the EU, in the fight against illegal immigration. Spain is key in these external borders as it is the natural gateway from the African continent.

To coordinate actions to control all external borders, the EU created the agency Frontex to coordinate and facilitate the implementation of necessary measures to implement Community policies and external security of borders. It also focuses on training border police and establishing European standards and criteria to analyze and assess risk situations that may occur. Spain participates in NATO (North Atlantic Treaty Organization, a military alliance with the U.S. to protect member countries), and there are five military bases integrated into the structure of NATO in Spanish territory.

Counties of Spain

The current Spanish territorial organization is based on the Constitution, which establishes three territorial areas: the municipality, the province, and the autonomous region. The municipalities are the basic local administration and the oldest in origin. According to the census, there are 8,111 municipalities, with various extensions based on the historical circumstances in which they were formed. The government and administration correspond to the councils of the municipalities, which have a range of skills that are their own and are recognized in the Basic Law of Local Government. Some of these powers are safety in public places, public transport, protection of public health, protecting the environment, or the recruitment of works and services. The alteration of municipal limits, whether by merger with another party or segregation from another, must be approved by the government of the autonomous region concerned. The province is a local entity with its own legal personality, which is composed of the grouping of municipalities. The state considers the province as its body of territorial administration, and therefore all state actions are organized within the province. The government and administration of a province corresponds to the county council, in which a set of provincial deputies, elected from among the mayors and councilors in the province, represent their districts. The alteration of a province is under the territorial jurisdiction of the state and must be approved by Parliament through an organic law. The autonomous region appears in the Constitution of 1978, which recognized and guaranteed the right to autonomy of the nationalities and regions, which are formed by integrating neighboring provinces that have historical, cultural, and economic characteristics, or provinces with a historical entity. There are 17 autonomous communities and 2 autonomous cities. They have a certain capacity for self-government with legislative and administrative autonomy in various aspects specified in the Constitution: planning and urban development, agriculture, livestock and fisheries in inland waters, forestry, environmental protection, monuments, tourism, sports, welfare, health and hygiene, etc. The basic institutional norm is the statute of autonomy, which recognizes and protects them as part of its legal system. Each one must specify the powers assumed by the community. A federation between different communities is forbidden.

Other Territorial Organization Units

The constitution recognizes the possibility of establishing other forms of territorial organization. The autonomous communities can establish sub-municipal entities such as parishes in Galicia and Asturias. Also, clusters of towns and counties in Catalonia, Galicia, and Aragon. In the Balearic Islands and the Canary Islands, there are island councils and town councils. The autonomous communities can create administrative metropolitan areas, and municipalities can be grouped into commonwealths. In Galicia and Asturias, the town is called concello or conceyu. In Navarre and Alava, there are consejos, which are peoples who have a certain autonomy within their town, with administrative demarcations similar to the Asturian and Galician parishes. In the Valencia region, the equivalent is called homologated territorial demarcations (DHT). In Navarre, there are merindades, but they have no administrative value. In the Basque Country, each province has its own Provincial Council with the powers of the province, but they have broad powers in tax matters, urban planning, and social services. They also have a provincial legislature, the General Councils, which have regulatory capacity in areas where the historical territory is competent, participating in the election of the deputy general or deputy heads of the Provincial Government and the approval of the territory’s budget.

The Delimitation of the Catalan Territory

Catalonia is located on the shores of the Western Mediterranean. It has an area of 36,020 km² and a very complex terrain, with peaks over 3,000m, some flat areas, and cut coasts. Northern Catalonia is part of France. It does not have its own autonomy, but forms the Pyrenees Orientales department and is incorporated into the region of Languedoc-Roussillon. The Principality constitutes one of the autonomous communities of Spain and has its capital in Barcelona. Catalonia is part of the territories of Catalan culture, along with the regions of the Aragon Franja, much of Valencia, the Balearic Islands, and the city of l’Alguer, which are called the Catalan Countries.

The Organization of Territorial Autonomies in Catalonia

The Generalitat was assembled in the territory of the country in districts, a paper founded in 1931. In 1936, the study of the division of Catalonia was agreed, territorially divided into 9 regions and 38 counties. It was not passed until 1936 and remained in force until 1939. The current territorial division has its legal basis in the Organization Law of the division and county of Catalonia, where the county is defined as a local territorial character, consisting of the grouping of municipalities with its own personality. Each region has a council composed of councilors elected from among the various municipalities in the county, with powers such as planning, health, social services, culture, sports, education, or the environment. The regional division was created in 1987, with three new counties and the recognition of the personality of the Aran Valley with the creation of the Conselh Generau d’Aran, an autonomous body with wide powers to administer this region of Occitan culture. From 2004, the Government proposed the creation of seven regions or groups known as vegueries, which define specific territorial areas for government and inter-local cooperation. They coincide with the seven areas of work defined by the General Territorial Plan of Catalonia. This may involve the modification of some counties and the creation of new ones. It also involves changes in the constituencies and alterations in the concept of region and its boundaries, which is not in the hands of the autonomous community.