Why Public Finance Matters: Evolution of Independence Movements in Catalonia and the Basque Country during the Twenty-First Century

Abstract

This paper analyzes trends of regional devolution throughout Spain’s modern history—as well as equivalent trends of public favor for such devolution—to inform ongoing discussions on how the country can maximize its political and economic efficiency, while accounting for constituencies’ preferences and a federal affirmation of sub-state identities. The article describes evolution of public support for secession in the Basque Country and Catalonia; assesses the historical-institutional framework of region-state relations following Spain’s transition to democracy; and evaluates economic motivations of political interest groups across the Basque and Catalan regions. Having considered these frameworks, the piece concludes by discussing obstacles toward secessionist movements in Spain within the EU and United Nations frameworks.