Opinion: Catalonia’s Lessons for a European Fiscal Union

Spanish cohesion is currently facing a severe test in the chaotic conflict surrounding the referendum on Catalan independence. Of particular importance is the fiscal dimension of the issue. A highly influential argument of the independence movement is pointed to the financial burden placed on the region combined with Catalonia’s limited budgetary autonomy. EconPol network member Friedrich Heinemann/Centre for European Economic Research (ZEW) shows: This is an experience that Europe should pay extremely close attention to, given the ambitious reform proposals currently discussed for the EU and the euro area many of which point to greater centralisation.