Spain: Catalonia votes for new fiscal system

Catalonia's Parliament approved yesterday a new tax agreement providing for the creation of its own fiscal agency, a day after the announcement of a possible bailout request to Spain. The objective of the proposal by government party Convergencia i Union (CiU) is a self-financing model which, contrary to the fiscal autonomy of Basque countries and Navarra, would allocate funds to extra-territorial solidarity plans. The initiative presented by regional president Artur Mas was approved yesterday by Catalonia's Parliament with the support of CiU, of the pro-environment Communist party Icv-Euia, of the pro-independence republicans of Erc, secessionist MP Joan Laporta and Socialist Ernest Maragall. The remaining lawmakers with Psc abstained while the PP and constitutionalist parties Si and C's voted against. Catalonia's government will now have to negotiate with the central government chaired by Mariano Rajoy the implementation of the fiscal agreement which will not come into force until 2014, when the current system financing the region's autonomy will expire.