Basque Territorial Articulation and Economic Agreement

Territorial Articulation and Historical Provinces

5.1.1 Territorial Articulation: This section addresses projects with a common distribution across Navarre and the Basque Autonomous Community (comprising the provinces of Alava, Guipuzcoa, and Vizcaya). These are the common institutions of government. In addition to participating in the Basque Parliament (Legebiltzarrea) and the Basque Government, each province has its own specific historical bodies: the General Assembly (Juntas Generales) and the Provincial Council (Aldundiak).

The Law of Historical Territories (LTH)

With Foralite restored, these entities have significant powers at their disposal, especially regarding financial affairs. This situation has occasionally acted as a conflict trigger (piztarazi dituelarik). To define and regulate the common institutions of the Basque Autonomous Community and the regional bodies, the Law of Historical Territories (LTH) was approved. This law governs the relations between the Government and the regional powers and functions of different organizations.

Governance and Economic Control

Theoretically, the General Assembly is the main body of the province. However, in practice (praktikan), real power is often held by the Provincial Council, as the Boards may lack the actual capacity to fully control economic matters.

The Economic Agreement and Fiscal Autonomy

5.1.2 Economic Agreement (Kontzertu): As mentioned, following the disposal of the Provincial Economic System in 1876, the system has continued without interruption in Alava and Navarre, even during the years of the Franco dictatorship.

Tax Collection and the Basque Treasury

Under the Economic Agreement system, each region's Provincial Council sets and collects taxes (obratzen dituena). Taking into account criteria such as per capita income, a portion of the funds is sent to the Basque Government Department of the Treasury. All financial decisions are coordinated through the Basque Council of Finance, where the Basque Government and the Councils must reach a majority agreement.

The Quota and the Mixed Commission

The Basque institutions must provide a specific payment to the central government known as the Quota (Cupo). The calculation of the Quota is managed by a Mixed Commission consisting of representatives from each Regional Council, the State Department, and the Administration. This system is updated periodically and is supported by law.