Tuesday, October 24, 2017

Why So Much Division in Europe?

When you look at various regions trying to separate themselves out of their nation-states in Europe....the question ought to come over why.

When you look at most countries in Europe (the bigger ones)....they were based on a language situation, and little else when they were incorporated as they look today.

But there's this odd problem that popped up in various countries (Belgium, England, Italy, Germany, Spain, France, etc).....as nations grew through the 1980s and 1990s....it was apparent that various regions made money, which turned into tax revenue.  And various regions of a country had marginal industry, tourism, agriculture and services....which translated into....well, lesser tax revenue.

Leadership in countries did this interesting thing with the socialism idea.  They had this big pot of money and they leveled the playing field across the country.  Everyone got roads, bridges, educatioal funding, and people services.

After a while, with economic information being more developed, people started to realize that various sections of a country....say with 20-percent of the population....were funding forty-percent of the national tax revenue pot of funding.  In a country like Spain....there were fifty provinces.  Four of these....make up what is called Catalonia today (Barcelona, Girona, Lleida, and Tarragona). That one region carries an enormous contribution of tax revenue that covers the rest of Spain (223 billion Euro a year flow from Catalonia to Madrid).  That's about 20-percent of the national spending. 

Having this economic information available for the public to read....makes for a very uncomfortable situation.  Most people in the higher revenue-making regions now ask questions.  Why do they have to support or sponsor lesser income regions?  On top of that, various political agendas are being created which actively pokes at this issue, and makes the political folks sweat over these discussions.

The politicians back at the central government?  Well...they'd just like to 'gift-out' everyone and get appreciated.  The idea that you'd ask about more services for your state or region....than another state or region....because you put more money into the pot?  Well....you are making this a bit complicated.

If any of these attempts are successful?

Now we get into the beef of the whole discussion.  Let's say that four of the most norther provinces of Italy (the wealth-making section of Italy) went off and separated into one single nation.  What remains is roughly 75-percent of what you see in Italy today.  Wealth-wise?  They'd only be able to generate about sixty-five percent of the income that this one northern region is making.  It would be difficult to hand out all of the fine wealth-redistribution money that typically goes out each month.  Within three or four years, you'd have this remainder of the nation looking at lesser revenues and unable to balance out the the system that they were used to enjoying. 

Around all of Europe?  There are probably a dozen regions which know their wealth potential and seem to be frustrated over the lack of return tax revenue into their state. Fixing this?  Just about impossible. 

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