The new regional financing system 2002-2007

Abstract

The development of the autonomous financing system, which began in September 1977 with the provisional reestablishment of the autonomous government of Catalonia, was conditioned by a wide range of factors such as the process of territorial reorganization of the State; the economic and political imbalances that existed between the nationalities and regions of Spain; the recessionary cycles, particularly that of the period 1973-1985; the diversity in terms of the capacity for self-government of each region; the economic and fiscal guidelines established by the European Union even before accession; the negotiating capacity of each region; and even the first mechanisms used for the transfer of competences and economic resources to the so-called "autonomous regions"; the economic and fiscal guidelines established by the European Union even before accession; the negotiating capacity of the nationalities and regions and even the first mechanisms used for the transfer of competences and economic resources to the so-called pre-autonomies, which were very deficient as they were based on negotiations, since the Constitution was approved a year later, in October 1978, and the Organic Law on Autonomic Financing (LOFCA), which would regulate the financing system, was not approved until September 1980.