Tensions within the system Autonomous communities of Spain

many in galicia, basque country, , catalonia view communities nations , not nationalities , , spain plurinational state or nation of nations , , have made demands further devolution or secession.

in 2004 basque parliament approved ibarretxe plan, whereby basque country approve new statute of autonomy containing key provisions such shared sovereignty spain, full independence of judiciary, , right self-determination, , assuming competences except of spanish nationality law, defense, , monetary policy. plan rejected spanish parliament in 2005 , situation has remained largely stable in front far.

a particularly contentious point -especially in catalonia- has been 1 of fiscal tensions, catalan nationalists intensifying demand further financing on last few years. in regard, new rules fiscal decentralisation in force since 2011 make spain 1 of decentralised countries in world in budgetary , fiscal matters, base income tax split @ 50/50 between spanish government , regions (something unheard of in bigger federal states such germany or united states, retain income tax exclusively federal one). besides, each region can decide set own income tax bands , own additional rates, higher or lower federal rates, corresponding income accruing region no longer has share other regions. current level of fiscal decentralisation has been regarded economists such thomas piketty troublesome since, in view, challenges idea of solidarity within country , comes down playing regions against each other, particularly problematic when issue 1 of income tax supposed enable reduction of inequalities between richest , poorest, on , above regional or professional identities .