BASQUE COUNTRY: the WEALTHIEST region in SPAIN? – VisualPolitik EN

BASQUE COUNTRY: the WEALTHIEST region in SPAIN? – VisualPolitik EN

Spain is known as who your glazes country the land of the flamenco and high unemployment Rates even now and all of Europe is emerging from the crisis this country maintains a higher unemployment rate than Iraq or Albania in other words Spain isn’t exactly a role model as far as economics is concerned However, there’s a region that doesn’t fit at all in this category Yes dear viewer we are talking about the basque country also known as use katie along with navarro These are two of the richest and most prosperous regions in the entire of spain both of the Basque Country and Navarre usually at the top of every indicator far above by the way Catalonia in other words We could say that these two regions are something like a small Germany within Spain with an entirely different political system to the rest of the country and a business sector more typical of northern Europe than southern Europe Moreover this area has its own language This is called a scatter unlike Catalan ao Sierra sounds nothing like Castellon But that is not all like Catalonia the Basque Country also has an important separatist movement in fact ten years before catalan politicians began to demand independence For a secured governments had also tried to become a sovereign state This was known as the abara che Plan C prevent presidents of the Basque Country Boris is officially called the Basque lehendakari Juan Jose Eber ah Cheh tried to divorce from Spain and They went pretty badly much that is something. We are going to address in a whole other video So let’s get on to today’s question And that’s why is the Basque Country and Navarre? Richer than the rest of Spain why do we say that they have a different political system to the rest of the country well we? Are going to answer all of those questions today, but before we do. Let’s dive into the history Medieval heritage both regions the Basque Country and Navarre have a special status called the Basque Economic agreements many people think that this special status came from the Middle Ages, but the truth is that it did it See in the year 1200 the ancient kingdom of Navarre What are now known as the a larvae biscaia? And keepers queer Provinces in navara itself joins the castile crown as a condition for this union the Castilian King had to recognize these so-called Navarez Queiroz or laws That is to say that this kingdom would maintain an independent government with its own laws its own courts and its own taxes for example No navara citizen could be forced to do military service these Nevarez laws remained practically unchanged for centuries but don’t think that this is an anomaly every feudal or Absolutist political system be it in Spain France or the United Kingdom was full of regions with special rights and special laws however things changed in the 19th century at that time Spain was Consolidated as a modern state and it decided to imitate the model of Napoleon’s France that is a centrist model But that means that almost every law would be dictated from the capital and would apply equally Throughout the territory as you can imagine this did not please the Neva Ruiz and the Basque citizens Suddenly, that’s pay more taxes and do compulsory military service, not a great combination this explains Why during the 19th century Spain had not one not two, but three Civil wars these were these so-called Carlist Wars where the old regime supporters mainly Basques And neva Ruiz fought against the Spanish army then in 1876 when these Nevarez Basque troops were defeated the laws were abolished Suddenly these four provinces had to follow the laws that came from Madrid In addition they had to pay a percentage of their taxes to the central state in return Madrid allowed them to retain a special fiscal Status and this concession is what we call the Basque Agreement which as you can see wasn’t born in the Middle Ages, but was approved in exchange for abolishing of the laws But it doesn’t end there Decades later in 1939 Franco’s dictatorship eliminated this economic agreement But only in the two provinces that didn’t support him hooey boosts Goa and Disgaea as you can really see from all of this It’s a rather torturous story with Wars and demands from both sides both provinces Which lost their special fiscal conditions were especially hurt and this can be seen today where a huge percentage of Biscay ins and creepers Cohen’s Want independence from Spain and all this explains? Why in the 1970s the new democratic spanish constitutions writers wanted to combat said basque and Lavar the basque? agreements returns, but this time in a modernized version The mask quota, this is one of the most confusing Issues in Spanish politics see if a citizen lives in Malaga or or valid a lid he or she pays most of their taxes Directly to the central government of course there are some special taxes that depends on the city or the autonomous community But the vast majority goes to the National Treasury Afterward the state distributes this money among the different autonomous governments as ever they see fit These are the so-called Autonomic transfers and of course some regions tend to benefit from these transfers and others are harmed in Theory, and this is quite debatable the richer regions help the poorer regions however both Navarre and the Basque Country have a different system in this case the Provincial governments collect almost all of the taxes and notice here that I said Provincial this means that if a citizen lives for example in bilbao They do not pay taxes to the basque government But to the FISC iya provincial council and this provincial government has the autonomy to do things like this This kya will change taxes on company profits to increase competitiveness So maybe you remember in another video we told you why? Switzerland is so rich now one of the reasons for this is that in Switzerland Each can song can compete with each other by offering better fiscal conditions while something similar is happening in the Basque and the vara provinces and that explains why Taxation in these regions is a little lower than it is in the rest of Spain now you may be wondering Do these provincial councils pay nothing to the Spanish state well? No
There’s none of that so that’s where these so-called Basque quota comes into play the Basque Quota is the percentage these regions pay to the central government in exchange for the common services. They enjoy for belonging to Spain For example the army embassies and roads all these are paid by Madrid But the Basques can also enjoy them they therefore have to pay part of the cost And not only that if for example Spain decided to increase their defense budgets the basket quota would also grow proportionally As you can imagine all of this is theoretical the truth is that the basket quota is the result of political negotiations? That’s a different story for a different day The truth is that unlike all the other autonomous communities the Basque Country in navara know Exactly how much money they pay for the common cause and how much remains and in most cases This is a fantastic advantage, but just wait a moment because this doesn’t end here In principle it might seem that the economic agreement is a fair system Everything in the negotiation is black and white but the truth is that the system is far from perfect jumera When I said that the central state distributes the money that it collects among the different autonomous communities while the truth is that both navara and the basque country Belong to this distribution and being such rich regions it would be logical to think that they would contribute more than they receive well That is totally not happening The basque country receives twice as many resources per capita as madrid catalonia or Andalusia and so now you may be asking yourself this and that’s well how is this possible the reason was purely political as I was saying Basque Nationalism is as important as Catalan nationalism that means that these autonomous communities have their own political parties parties such as the Basque Nationalist Party Which holds its communities government and has a strong representation in the national parliament Well every year the central government has to approve national budgets in Parliament for that They need an absolute majority the majority that in most cases requires support from these parties however This isn’t the only reason for the basque country’s prosperity not at all in fact There’s much more at play here and let’s look into it right now In Germany and Spain have you heard of a company called Oakley? Well if you have a gas stove you might earn some of their products. It’s the world leader in manufacturing Systems for preventing accidents and gas leaks and their headquarters are in order Zia a town in the deepest Cova province the same goes for Je ma if you have an armored door in your house It’s highly likely that both the lock and the keys have been manufactured by this company which is located in Mondragon, this is a small basque town. These are the so-called hidden leaders They are small hyper specialized companies that have become benchmarks in their niche and which have devastated the international markets in a previous video we told you how Germany owes part of its wealth to Mittal stance Well the Basque economic model is very similar moreover if you have the opportunity to travel by road through Yeti You’ll see factories dispersed throughout its landscape in fact its population is Much more scattered than anywhere else in Spain of course there are large cities But most people live in urban centres of less than 40,000 inhabitants And most of these municipalities have business hubs that employ locals in the Basque Country economic activity isn’t only Concentrated in large cities, and now you may ask yourself well why does this kadhi have such a homogeneous business network for this we return to the same principle and that’s decentralization by having four different Treasuries with autonomy to collects taxes and make investments There’s a higher tax competition than in any other part of Spain this means that public investments aren’t Concentrated in a specific place that are distributed evenly Vesting in startups will have a 30% deduction in buscar in other words It’s true both the Basques and the Nevarez have a huge advantage because they receive money from the central state But that money has been invested much more efficiently than in any other region in fact It’s no coincidence that these two communities are the least Indebted in all of Spain and that in addition. They have hardly any of the corruption cases that have poisoned the rest of the country So now the question is do you think some elements of the Basques and Navarre ease models could be rescued and replicated in other countries Do you think it would be possible to apply the basque agreements to other regions? Well, let us know in the comments section below. Also as always Thank you for watching and please do leave a like and do subscribe we have brand new videos every Monday and Thursday also Let me
Thank our friends at the reconsider media podcast they provided the vocals in this episode that were not mine and as always Thank you for watching

100 thoughts on “BASQUE COUNTRY: the WEALTHIEST region in SPAIN? – VisualPolitik EN

  1. The capitalist part of Spain is rich while the socialist part of Spain is poor. Hmm, I'm not surprised.

  2. Can you make a video that explains the differences between the northern regions of Italy and the ones in the south, that would be nice also if you connect this argument with the recent results of the national elections. Thanks, keep doing these amazing videos 🙂

  3. Hi man. I really love your work. Please talk about a country called Swaziland a small country in Southern Africa next to South Africa which is Africa's last absolute Monarchy. It is lead by a Multi-Millionaire Dictator by the name of King Mswati 3. His family rose to power in the 1960's on democratic election and later banned political parties and elections. It is completely run on Monarchy rules and African traditional practices. Its the only country in the world that is still run like this. Message me if you need to know anything more about it.

  4. Sorry @VisualPolitik, the point you are missing is called "revolutionary tax". Without it this video is way far from reality. You would need to analyze this part of the Basque economy to present the full picture. This "tax" has an enormous impact on the companies investing there. This illegal "tax" with the exception of El Corte Ingles makes the picture completely different.

  5. Basque Country has more independence and autonomy from central Spain than Catalunya because they are willing to resort to terrorism to get what they want, terrorism works. If Madrid starts thinking about imposing more controls on Basque Country then Basque people start thinking about what things to blow up in Madrid.

  6. Late to the party but just to comment: The basque tax model can benefit a region enourmously but is also very risky, if the region loses money it doesn't get bailed out by the central government, which is exactly why even though the model was proposed for Catalonia, it said no.

  7. Something to ponder, how did that little Catalonia insurrection a few months back affect these other regions and how the central government dealt with them?

  8. expert on the history of Greece in the Middle Ages, and in particular on the role of Slavic and immigration there. His two-volume treatise “Geschichte der Halbinsel Morea während des Mittelalters” (History of the Morea in the Middle Ages), Stuttgart 1830 & 1836, caused consternation and protest in philhellenic circles as he sought to show that Greece, and the Morea (Peleponnese) in particular, were not primarily populated by the descendents of the ancient Greeks, but by hellenized Slavs , i.e. that there was no genetic continuity between ancient and modern Greece. In the first volume, provocatively subtitled “Untergang des peloponnesischen Hellenen und Wiederbevölkerung des leeren Bodens durch slavische Volksstämme” (The Fall of the Peloponnesian Greeks and the Repopulation of the Empty Land by Slavic Tribes), he stated: "The race of the Hellenes has been wiped out of Europe. Physical beauty, intellectual brilliance, innate harmony and simplicity, art, competition, city, village, the splendour of column and temple – indeed, even the name has disappeared from the surface of the Greek continent… for not even a drop of noble and undiluted Hellenic blood flows in the veins of the Christian population of present-day Greece.”

  9. Because they're not lazy Andalusians and they like to work.

    Menos "fiesta" and "siesta". I want independence from you.

  10. If Switzerland's wealth were down to merely competition between cantons, then why hasn''t every other country implemented this strategy? I believe the UK has something similar with the capital cities of each country, but not every city. Imagine if the UK had actual taxation competition between all cities & towns! I think that would be incredibly exciting and offer great opportunities but would de-centralise power away from London, and the the Queens palaces may drop in value… slightly. They don't like that sort of thing.

  11. While it's, of course, nice, that you see Germany in such a good light, I would like to mention, that Germany, as of now, has a lot of Problems, with the two biggest parties suffering from lobbyism and a distribution of wealth, that could be a lot better.
    Lately, the importance of the "social market economy" (is it called like that?) steadily declined.
    Furthermore, the Government slowly but steadily shifts toward supporting big companies instead of the "Mittelstand". Not to mention, that Germany exports way too many goods, hurting other European economies.

  12. Super cool loved this video, me myself am from Vizcaya close to Bilbao, and part English to, you kind of butchered the names but it’s OK
    Thanks for the video.

  13. You perfectly explained despite forgetting Iparralde which is part of the Basque Region but it belongs to France. I am American from California but my mom is Basque, I cannot wait to see the Basque Republic formed by Euskadi, Navarre and Iparralde as an official European country.

  14. This guy is way too in love with his own voice and presentation style. It comes off as snooty, opinionated and bias especially with more historical or political exposes. Take 2 steps back from the lens and dial it down bud. There is a reason why no presenter fills 80% of screen real estate with their face…it creates a feeling of imposition.

  15. Of course not! Mediterraneans are very dramatic! Those things would never work on the south

  16. Europe (and specially Spain) are too small to be despised by a country as big as the USA, but their history are too big and complicated to be understood by a mind as small and simple as an American's.

  17. I love how ( politically correctness ?) you reiterate Basque Country and Navarre as if mutually exclusive . That dichotomy ( Basque-Navarrese) had never existed prior to an enhormous political and mediátic exhibit of the last 50 of so years, courtesy of you know who
    Aldiz Eskerrik asko

  18. The wealthiest region in Spain is the Community of Madrid

  19. We need this in Catalonia, the independence it´s a mess and independentists would agree this.

  20. The basque contry is also navarra, and part of france which you didn't say enything about it.

  21. Can you do the same with Galicia/Galiza? I would apreciate very much a comparison of that region with other Spanish regions. My father is a galego/gallego imigrant here in Brazil… Thank you!

  22. ‪#Basquecountry similar to #Catalunya is a device to shatter #Spain declining economic State‬.

  23. can't this fucking donkey fuck just speak normally without that dumb face and dumb sounds couldn't understand shit from the way he talk and it pisses me off i wish i can fucking stomp on his fucking face

  24. Quite good. But…

    5:18 “… a citizen lives in Malaga … pays most of their taxes directly to the central government…” and 5:28 “…the vast majority goes to the National Treasury…”

    6:03 “… (basque and Navarre) Provincial governments collect almost all of the taxes …”

    6:59 “… basque Quota is the percentage these regions pay to the central government in exchange for the common services … for example, the army, embassies and roads …”

    11:16 “… It’s true both the basques and the Navarre have a huge advantage because they receive money from the central state …”

    Ok. So, the last assertion isn’t true. Basque Country and Navarra don’t receive money from the central state, they pay money to the central government. They collect almost all of the taxes (and whit this money they pay almost all services like health service, education system or police) and then they pay a percentage for “common services” like army, embassies or some roads (because others are directly supported by basque and Navarra provinces), and this is especially important, a percentage of a national compensation fund (Fondo de Compensación Interterritorial) approved by central government and used for support poorest regions.

    P.S.: The system has a risk: Basque Country and Navarra provinces have to pay almost all services with their own money. If the collect taxes under expected, is their problem and the central government or other regions will not help them. And Basque Country and Navarra provinces have to pay the percentage for common services approved unilaterally by central government; so, if they don´t collect enough money is, again, their problem.

  25. I'm from Spain, my best friend is from the Basque Country (In the Basque country Spanish is still spoken A LOT too) , even she can't speak Euskera fluently kind of, its literally so hard, I'm daring to say harder than chinese e.e Every word can switch entirely if you add a verb or another word + words have strange pronunciation

  26. You neglected to mention, the Mondragon Cooperative is the 10 largest business group in Spain, and it is owned by the workers. When workers own the business and these workers hire the managers, there is no moving the factories overseas and devastating a community.

  27. Pero cuántas tonterías. La manera que tiene el pavo este de pronunciar Valladolid te puede dar una idea de la calidad del resto del contenido. Con independencia de que Bilbao sea un sitio cojonudo, España es uno de los mejores países del mundo en niveles de desarrollo humano, siendo realmente la aportación vasca al conjunto irrelevante. En fin que se crean su propia basura antiespañola.

  28. the video has been one of the most complete a non-basque has produced in YouTube but I object several point of views mentioned in the video:
    1)new autonomy Treaty of the Parliament Of Euskadi of the period of President Ibarretxe Lehendakari's was not mean to separate Euskadi from Spain, but was aimed to MARRY it with Spain in free and equal condition, as two sovereign states, plus clarify that Euskadi of not the Basque Country but aims to be by giving the hand to Navarre or the French Basque Country join Euskadi in democratic ways (by referendums of their respective parliaments). Basque Country is cultural and Euskadi is mean to be the Political structure. Nowadays the basque territories are part of spain (and France) by military force, and not by democratic means. The current Spanish constitution was only approved by 30 % of the census. catalonia's independence was approved by 34 % of the census. If the percentage of Catalonia was not enough to get independence, far less is the Basque percentage to be part of Spain.
    2) On the nineteenth century the absolute and feudal states don't become "modern" (in the way the word is understood nowadays "transparent and based in human rights"), instead they become "nationalist" states (actually ultra nationalist,,the kind that rejects ,,kills and marginalized any other nation or people that rejects to be assimilated by the culture and nation of those ruling the military power). In the way you mention it, is sound like Spain was or is modern and the Basque rejected to be modern by not wanting to give up their medieval way of doing democratic politics. Those ways were far more modern than that Spain was then and now.
    3) The way of doing politics and self ruling of each Basque territory (4 in current Spain and 3 in client France) has always been based on the fueros or in Basque "Lege Zaharra" (old law) . Each territory had its own , and actually the navarrese fueros were not the oldest , but biscayan fueros (from the 11th century). And no citizen of any Basque territory had to do military service, coz they were all considered to be Lords.
    Things just changed when Spain decided to become nationalist in the nineteenth century. The Basque Coutas (called in Spanish "cupo" in Euskadi and "mejoramiento" in Navarre) are the price given by the 1st republic and 1st "democratic monarchy" of Spain to obligate Basques to be Spanish nationals in a glimpse of pseudo democratuc way. because democratic would be to do a referendum on statehood of the Basque territories. The first republic rejected it first (in the first presented Basque Trade in which Navarre approved to be part of it and have its capitol city as the capitol city of Euskadi) and then have it so the Basque would fight against Franco…. The final approval took place would the battle was started in Navarre, this the reason why the Navarre territory of the Basque Country is not currently part of Euskadi. The second time that the Quota was given was in the contemporary Spain when the Spanish condition was being elaborated, to convince Basque territories to get assimilated by Spain, but in Euskadi only 30% of the census approved the Spanish constitution. However the Basque autonomy treaty was approved by 62% of the census, but has not been fully implemented yet and was completely stop by all the Spanish governments in the 90s, this the need of the Basque Parliament to renew the Treaty , wrongly known as Ibarretxe Plan. Without the Basque Autonomy Treaty been fulfilled by Spain, the Basque citizens of Euskadi are no longer Spanish. Not because they don't want to be so, but because Spain rejects the Basques to be Spanish in the terms Basque choose to be Spanish citizens.

  29. I mean, be sure they have enough money, to at least buy 32 ‘Audi’ cars for the local police in Bilbao.

  30. I have always thought it was the climate that makes the difference between the diverse regio's as it is the same in Italy with a more prospering north and a lesser competive south.

  31. Estás contando la versión española, que nace de un total desconocimiento de la realidad. El famoso "cupo" no es lo que la CAV o Navarra contribuyen al Estado, el "cupo" sólo es una parte de lo que ambas comunidades deben pagar al Estado, aproximadamente un tercio de la obligación total a pagar.

  32. Bueno, la versión española es producto de no querer reconocer ante los votantes españoles que hay otra manera de gestionar la res pública que no sea la de la perpetua corrupción y achacan a lo "injusto" del cupo las diferencias de gestión entre España y Euskalherria (Navarra y la CAV)

  33. Navarre joined in 1512, yes. But the Basque country had joined many centuries before. Throughout most of history the Basques were with western or central Spanish kingdoms (especially Castille), whereas Navarre was usually alone or united with Aragón. Aragón was & is indeed Navarre's brother. The story is too long to explain now.

  34. also, the basquepeople are not spainards…..genetically they are a seperate race…..similar to the Berbers in Morocco

  35. You said "Castalan" with an S but you meant "Catalan" w/o an S in the beginning. I know it's difficult to differentiate between "castellano" and "catalán". Gipuzkoa, and Álava are NOT Navarra.

  36. We receive more money than Catalunya and Madrid, but we give too. In the end, we give a little bit more that what we receive.

  37. Although the Basque Country has the lowest employment rate of Spain with 9.6% above Madrid with 11.5%. The wealthiest region in Spain is Madrid with 33.809€ income per capita and Euskadi is second with 33.088€. Also, as you explain in your video, their special fiscal situation virtually means they don't pay a penny to the poorer regions. Actually that's one of the demands of Catalan nationalists, to have the same tax system as Euskadi. You should also mention that Spain placed the bulk of industry in the Basque Country and Catalonia, because both of them had coast and were the access to Europe by land. Before the industrial revolution, the wealthiest parts of Spain were in the South, because it was the commercial centre to connect with America. The Basque Land in France is mainly rural.

  38. I hope that someday Europe will accept the confederation as its foundation. Not as individual countries but as regions. With its internal laws and charges, but with equal political rights in the union. Whether this would lead to much greater competition within the Union itself.
    Is not the policy more efficient divided smaller regions united into one large structure? Is not democracy more direct?
    Whether it would make policy more dynamic and take decisions that reflect actual needs more effectively. I think.
    I know it's science fiction, but …
    Well … look at the possibilities for the European Union, from your point of view, it will be great. 🙂

  39. Basque is the most successful diaspora group in the world at around 60 million with 5th generation ties back to the old country according to Masaman . Cool says the Balck Irish guys Enjoying our 9000-year-old original ice age refuge DNA, smartest people Europe, ethical Atlantian values from even earlier times. . Thanks Simon. Geology is a match as well.

  40. I think that the rest of comunities do not want the agreement because it will make them responsible of its own failures, so they would not be able to, for example, loan money from Madrid, instead, they would have to lend government bonds, which needs a much more responsible administration of finances.

  41. Not sure about the statements about basques receiving capital from the central goverment. Some months ago I read an article about the basque economic system, written by the one who created it, which shown that the basque goverment didn't reive a single euro from goverment aids in years. But I also saw the news title in your video stating otherways. So I guess there is some complicated matter regarding this, might need to research more about this.

  42. The absortion of basque territories by the Castillian kingdom is oiverly sdimplified. I understand you did this because of time, but its important to know that basque provinces were "annexed" gradualy over the time with more or less support form local nobles. The last one, Navarre, was simply conquered by force, although a part of it (Lower Navarre) would survive thanks to french support and would become part of France.

  43. I cant understand why other spanish comunities can not copy the efficient Basque model and learn from Basque prosperity.

  44. To all those who are complaining about his pronounciation, please don't activate the subtitles!… You will cringe.
    I saw probably all the possible letter combinations for each euskera word he used; it's quite hilarious.

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