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For instance, Andalusia received enough resources to increase its annual budget
by 10%from2001 to 2002. 29
The results of the Catalan elections in fall 2003 and the national elections in
March 2004 produce yet another change in the political conditions surrounding
conflicts over fiscal structures reform. For the first time since the democratic
transition, CiU loses its majority in Catalonia. A coalition government between
the Catalan socialists (PSC-PSOE) and the left-wing nationalist party Esquerra
Republicana de Cataluny (ERC) arrives in office. Shortly thereafter, the PP lose
the national election, and Zapatero leads a minority government supported in
Parliament by, among others, a number of left-wing nationalist organizations
(ERC, BNG).
From 2004 onward, the two factors undermining the centripetal nature of
the system of representation reinforce each other: a minority government in
Madrid, and a decentralized branch of a national party competing against
nationalist forces to champion Catalan interests in Barcelona. The door was
wide open for a new push in the pursuit of fiscal autonomy. “Espa na Plural,”
the socialist leitmotif against the monolithic conception of the state relished by
Aznar, reached power and reopened the process to accommodate nationalism
politically and, once again, reform fiscal arrangements economically.
Pasqual Maragall, president of the government of Catalonia, and his allies
quickly launched the process to draft a new CoC, which included several pro-
visions further increasing Catalonia's fiscal autonomy (as detailed in Table
7.5 ). In addition, this CoC affirmed the identity of Catalonia as a nation
and included a wide ranging expansion of its political and judicial auton-
omy. Zapatero stated, to his later regret, that he would accept whatever
draft was approved by the Catalan Parliament. Unsurprisingly, the conser-
vative party (PP), yet again, beat to quarters in defense of national unity.
The draft was endorsed by 90% of the Catalan Parliament and incorpo-
rated many demands of the nationalist parties. Contrary to Zapatero's ear-
lier promise, the national Parliament intervened to ensure that this new draft
fitted within the constraints of the national constitution. The process evinced
the differences between the Catalan (PSC) and the national (PSOE) socialists.
Table 7.6 contrasts the original language of the draft approved by the Par-
liament of Catalonia with the text finally approved by the Parliament in
Madrid.
Reaching an agreement on these modifications as well as on the specific
terms listed in Table 7.5 was far from straightforward. Moreover, the fact that
these discussions were intertwined with disagreements about the denomination
of Catalonia as a nation and the architecture of judicial power did not make
things easier. Catalan socialists (PSC-PSOE) were trapped between the demands
of their coalition partners in Barcelona, in particular the left-wing nationalist
party (ERC), and the constraints imposed by the socialist party in Madrid. In
the end, the PSOE decided to change partners in Madrid and secure the passing
29
Source: El Pais , October 9, 2001.
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