The agreement between ERC and PSC that enabled the investiture of Salvador Illa includes the idea that solidarity should be limited by the “principle of ordinality,” a concept that has long been debated in Catalonia. This principle, or rather criterion, states that redistributive actions of the public sector should not alter the ranking observed in the distribution before redistribution. While this principle is widely accepted when considering individuals and incomes, it becomes more complex when applied to Autonomous Communities and their public services.
When it comes to income tax, the principle of non-reordering seems reasonable; that those who earn more should pay more without altering the ranking. However, when discussing Autonomous Communities and their fiscal capabilities, questions arise about whether it is fair for wealthier regions to have more resources per capita for public services than less affluent regions. This disparity is not perceived in the same way as income, as public services are viewed through a lens of equal access rather than income inequality.
The perception of public services as catering to the needs of citizens rather than market logic leads many in Spain to advocate for equal access, even if it requires redistributing more resources to regions with higher costs of service provision. This challenges the principle of non-reordering, showing that its application is contingent on the country and historical context, as seen in federal nations like the US, Canada, and Switzerland, where differences in public services among states are accepted to varying degrees.
The application of the principle of non-reordering to individual incomes is widely accepted in OECD countries with mixed-market economies, while its application to public services depends on constitutional balances and historical origins of decentralized states like Spain. Catalonia’s proposal to apply this principle to regional financing is legitimate, but it cannot solely rely on comparisons to individual redistribution and must be approached as a discussion on the state model and constitutional principles.
Ultimately, the debate on the principle of non-reordering in the context of regional financing is a complex issue that goes beyond individual income redistribution and must be addressed within the framework of the constitution and historical context of each decentralized state. Santiago Lago Peñas, an expert in Public Economics at the University of Santiago de Compostela, highlights the importance of approaching this debate with a focus on the constitutional implications and agreements that shape the model of the state.
