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Conclusion: unilateral risk

The quota concept implies, that its quantification depends absolutely on the Central Government expenditure, regardless of the revenue of the Historical Territories. Therefore, it is a payment to the Central Government to fund its expenditure but not a participation of the State in the revenue of the Historical Territories of the Basque Country None of the elements taken into account to determine and quantify the quota is affected by any decision adopted by the Basque Administration. This means the Basque Country assumes the risk of obtaining lower tax revenues due to a worse relative economic situation, to a decrease in the revenue caused by its own legal decisions when designing its tax regime or simply due to being less efficient in the administration and collection of taxes. The annual update of the Quota is also linked to variables exclusively dependant on the Central administration. This feature is known as “unilateral risk” and assures the full responsibility of the Basque Country for its decisions.

For the purposes of checking that none of the variables taken into account for the calculation of the quota depends on the Basque Institutions’ decisions, press the following link:: Quota elements.

For the purposes of observing the evolution of the relative Gross Domestic Product of the Basque Country in relation to the attribution rate, check the following chart: GDPmp and attribution rate 2002-2019.