The Basque Country: Spain's effective but expensive antidote to secession (This Oct. 9 story has been refiled to add a dropped word in the headline) By Sonya Dowsett BILBAO, Spain (Reuters) - As Spain and Catalonia head toward a constitutional collision over the region s claim to independence, lawmakers on both sides of the crisis are pointing to a way out: north, to Basque Country. Among the verdant mountains of Basque Country, which borders France, a once-violent campaign for independence has petered out, with generous fiscal autonomy from Madrid helping to keep popular agitation for independence in check.  We don t have that economic resentment,  Aitor Esteban, organizer for the Basque National Party in Spain s parliament, told Reuters in an interview at party headquarters in Bilbao.  People don t feel that need to act upon a grievance about money; that makes a big difference.  The Catalan government is not calling for a Basque-style deal, insisting instead on independence after declaring overwhelming support for secession in an Oct. 1 referendum banned by Madrid. But the most moderate lawmakers in the region s ruling coalition privately say they could drop independence claims if they were given the tax autonomy that Basque Country enjoys. In Madrid, some socialists have suggested it could serve as a model for a compromise that would defuse Spain s biggest political crisis since a failed coup in 1981, although the cost to the central government would be significant. Basque staged modest protests over Madrid s violent crackdown on Catalonia s referendum, but the crisis has failed to rekindle secessionist fervor on the streets of Bilbao, the Basque capital nestled on the banks of the Nervion. Catalan flags hang from balconies alongside the Basque flag in a sign of solidarity, but Bilbao is prosperous and peaceful. Where once unionist politicians needed bodyguards and car bombings were a constant fear, tourists now crowd the taverns of the old town and the world-famous Guggenheim museum. Just 17 percent of Basques want independence and less than half would like to hold a referendum on the issue, according to a poll carried out by the university of Deusto. Basque militant group ETA, which killed more than 850 people in a decades-long campaign to carve out a separate state, effectively ended its armed resistance this year when it surrendered its weapons. The region now has one of the highest economic outputs per capita and one of the lowest unemployment rates in Spain.  The independence debate is on standby in Basque Country because of great fatigue after years of violence and uncertainty after the economic crisis,  said Xabier Barandiaran, professor of sociology at Deusto University. Basque s fiscal autonomy is among the most generous of any region in Europe, dating back to the 19th century and enshrined in Spain s 1978 constitution. If it were to be extended to Catalonia, an economically more powerful region accounting for a fifth of national production, the Spanish state would lose about 16 billion euros, according to a 2014 study by research house CSIC. That would equal about 13 percent of next year s budget and affect Spain s deficit and borrowing costs. For that reason, Spanish Prime Minister Mariano Rajoy has ruled out such generous treatment for Catalonia. Under Basque s accord with Madrid, the region collects nearly all its own taxes, which are forecast to total 13 billion euros ($15 billion) this year. It is due to return 800 million euros to Madrid in what is known as an annual quota to cover the costs of national expenses such as defense or infrastructure. Rajoy has sweetened that arrangement since he regained power at the head of a minority government last year, as the price of securing Basque National Party support for his 2017 budget. It has proved unpopular with other regions who would almost certainly oppose any similar deal for Catalonia, as it would mean cutting their share of state revenue. Typically, regions pass taxes to Madrid which redistributes money back to them according to a formula that favors the poorer regions. Former Catalan leader Artur Mas tried to hold talks with Rajoy in 2012 about granting Catalonia powers to raise and spend its own taxes, but the prospect of negotiations in the current climate look bleak. Catalonia has long said it pays a disproportionate level of taxes to Madrid in relation to the central funding it receives. A study backed by the Budget Ministry says Catalonia pays to the state 9.9 billion euros more than it receives. The Catalan economy ministry says this is even higher. Economists say an overhaul of the fiscal relationship between Madrid and the regions is overdue because the current system has led to intense tax competition between regions. Some autonomous communities have become under-financed, resulting in cuts in public services.  Now the situation is so critical, there might just be the political momentum needed to tackle it,  said Antonio Garcia Pascual of Barclays Capital. worldnews
the barque country spain effective expensive antidote secession this story refined add dropped word headline by sony rowlett biblio spain reuters as spain catalunya head toward constitutional collision region claim independence lawmakers sides crisis pointing way north barque country among verdana mountains barque country borders france campaign independence retired generous fiscal autonomy madrid helping keep popular agitation independence check we economic resentment actor stefan organizer barque national party spain parliament told reuters interview party headquarters biblio people feel need act upon grievance money makes big difference the catalan government calling deal insisting instead independence declaring overwhelming support secession referendum banned madrid but moderate lawmakers region ruling coalition privately say could drop independence claims given tax autonomy barque country enjoys in madrid socialists suggested could serve model compromise would defuse spain biggest political crisis since failed coup although cost central government would significant barque staged modest protests madrid violent crackdown catalunya referendum crisis failed rekindle secessionist fervor streets biblio barque capital nested banks version catalan flags hang balconies alongside barque flag sign solidarity biblio prosperous peaceful where unionist politicians needed bodyguards car bombings constant fear tourists crowd tavern old town guggenheim museum just percent bases want independence less half would like hold referendum issue according poll carried university dust barque militant group eta killed people campaign carve separate state effectively ended armed resistance year surrendered weapons the region one highest economic outputs per capita one lowest unemployment rates spain the independence debate standby barque country great fatigue years violence uncertainty economic crisis said xavier barandiaran professor sociology dust university barque fiscal autonomy among generous region europe dating back century enshrined spain constitution if extended catalunya economically powerful region accounting fifth national production spanish state would lose billion euros according study research house csi that would equal percent next year budget affect spain deficit borrowing costs for reason spanish prime minister marino major ruled generous treatment catalunya under barque accord madrid region collects nearly taxes forecast total billion euros billion year it due return million euros madrid known annual quota cover costs national expenses defense infrastructure major sweetened arrangement since regained power head minority government last year price securing barque national party support budget it proved unpopular regions would almost certainly oppose similar deal catalunya would mean cutting share state revenue typically regions pass taxes madrid redistributed money back according formula favors poorer regions former catalan leader artuk mas tried hold talks major granting catalunya powers raise spend taxes prospect negotiations current climate look bleak catalunya long said pays disproportionate level taxes madrid relation central funding receives a study backed budget ministry says catalunya pays state billion euros receives the catalan economy ministry says even higher economists say overhaul fiscal relationship madrid regions overdue current system led intense tax competition regions some autonomous communities become resulting cuts public services now situation critical might political momentum needed tackle said antonio garcia pascal barclays capital worldnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: The Basque Country: Spain's effective but expensive antidote to secession (This Oct. 9 story has been refiled to add a dropped word in the headline) By Sonya Dowsett BILBAO, Spain (Reuters) - As Spain and Catalonia head toward a constitutional collision over the region s claim to independence, lawmakers on both sides of the crisis are pointing to a way out: north, to Basque Country. Among the verdant mountains of Basque Country, which borders France, a once-violent campaign for independence has petered out, with generous fiscal autonomy from Madrid helping to keep popular agitation for independence in check.  We don t have that economic resentment,  Aitor Esteban, organizer for the Basque National Party in Spain s parliament, told Reuters in an interview at party headquarters in Bilbao.  People don t feel that need to act upon a grievance about money; that makes a big difference.  The Catalan government is not calling for a Basque-style deal, insisting instead on independence after declaring overwhelming support for secession in an Oct. 1 referendum banned by Madrid. But the most moderate lawmakers in the region s ruling coalition privately say they could drop independence claims if they were given the tax autonomy that Basque Country enjoys. In Madrid, some socialists have suggested it could serve as a model for a compromise that would defuse Spain s biggest political crisis since a failed coup in 1981, although the cost to the central government would be significant. Basque staged modest protests over Madrid s violent crackdown on Catalonia s referendum, but the crisis has failed to rekindle secessionist fervor on the streets of Bilbao, the Basque capital nestled on the banks of the Nervion. Catalan flags hang from balconies alongside the Basque flag in a sign of solidarity, but Bilbao is prosperous and peaceful. Where once unionist politicians needed bodyguards and car bombings were a constant fear, tourists now crowd the taverns of the old town and the world-famous Guggenheim museum. Just 17 percent of Basques want independence and less than half would like to hold a referendum on the issue, according to a poll carried out by the university of Deusto. Basque militant group ETA, which killed more than 850 people in a decades-long campaign to carve out a separate state, effectively ended its armed resistance this year when it surrendered its weapons. The region now has one of the highest economic outputs per capita and one of the lowest unemployment rates in Spain.  The independence debate is on standby in Basque Country because of great fatigue after years of violence and uncertainty after the economic crisis,  said Xabier Barandiaran, professor of sociology at Deusto University. Basque s fiscal autonomy is among the most generous of any region in Europe, dating back to the 19th century and enshrined in Spain s 1978 constitution. If it were to be extended to Catalonia, an economically more powerful region accounting for a fifth of national production, the Spanish state would lose about 16 billion euros, according to a 2014 study by research house CSIC. That would equal about 13 percent of next year s budget and affect Spain s deficit and borrowing costs. For that reason, Spanish Prime Minister Mariano Rajoy has ruled out such generous treatment for Catalonia. Under Basque s accord with Madrid, the region collects nearly all its own taxes, which are forecast to total 13 billion euros ($15 billion) this year. It is due to return 800 million euros to Madrid in what is known as an annual quota to cover the costs of national expenses such as defense or infrastructure. Rajoy has sweetened that arrangement since he regained power at the head of a minority government last year, as the price of securing Basque National Party support for his 2017 budget. It has proved unpopular with other regions who would almost certainly oppose any similar deal for Catalonia, as it would mean cutting their share of state revenue. Typically, regions pass taxes to Madrid which redistributes money back to them according to a formula that favors the poorer regions. Former Catalan leader Artur Mas tried to hold talks with Rajoy in 2012 about granting Catalonia powers to raise and spend its own taxes, but the prospect of negotiations in the current climate look bleak. Catalonia has long said it pays a disproportionate level of taxes to Madrid in relation to the central funding it receives. A study backed by the Budget Ministry says Catalonia pays to the state 9.9 billion euros more than it receives. The Catalan economy ministry says this is even higher. Economists say an overhaul of the fiscal relationship between Madrid and the regions is overdue because the current system has led to intense tax competition between regions. Some autonomous communities have become under-financed, resulting in cuts in public services.  Now the situation is so critical, there might just be the political momentum needed to tackle it,  said Antonio Garcia Pascual of Barclays Capital. worldnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: the barque country spain effective expensive antidote secession this story refined add dropped word headline by sony rowlett biblio spain reuters as spain catalunya head toward constitutional collision region claim independence lawmakers sides crisis pointing way north barque country among verdana mountains barque country borders france campaign independence retired generous fiscal autonomy madrid helping keep popular agitation independence check we economic resentment actor stefan organizer barque national party spain parliament told reuters interview party headquarters biblio people feel need act upon grievance money makes big difference the catalan government calling deal insisting instead independence declaring overwhelming support secession referendum banned madrid but moderate lawmakers region ruling coalition privately say could drop independence claims given tax autonomy barque country enjoys in madrid socialists suggested could serve model compromise would defuse spain biggest political crisis since failed coup although cost central government would significant barque staged modest protests madrid violent crackdown catalunya referendum crisis failed rekindle secessionist fervor streets biblio barque capital nested banks version catalan flags hang balconies alongside barque flag sign solidarity biblio prosperous peaceful where unionist politicians needed bodyguards car bombings constant fear tourists crowd tavern old town guggenheim museum just percent bases want independence less half would like hold referendum issue according poll carried university dust barque militant group eta killed people campaign carve separate state effectively ended armed resistance year surrendered weapons the region one highest economic outputs per capita one lowest unemployment rates spain the independence debate standby barque country great fatigue years violence uncertainty economic crisis said xavier barandiaran professor sociology dust university barque fiscal autonomy among generous region europe dating back century enshrined spain constitution if extended catalunya economically powerful region accounting fifth national production spanish state would lose billion euros according study research house csi that would equal percent next year budget affect spain deficit borrowing costs for reason spanish prime minister marino major ruled generous treatment catalunya under barque accord madrid region collects nearly taxes forecast total billion euros billion year it due return million euros madrid known annual quota cover costs national expenses defense infrastructure major sweetened arrangement since regained power head minority government last year price securing barque national party support budget it proved unpopular regions would almost certainly oppose similar deal catalunya would mean cutting share state revenue typically regions pass taxes madrid redistributed money back according formula favors poorer regions former catalan leader artuk mas tried hold talks major granting catalunya powers raise spend taxes prospect negotiations current climate look bleak catalunya long said pays disproportionate level taxes madrid relation central funding receives a study backed budget ministry says catalunya pays state billion euros receives the catalan economy ministry says even higher economists say overhaul fiscal relationship madrid regions overdue current system led intense tax competition regions some autonomous communities become resulting cuts public services now situation critical might political momentum needed tackle said antonio garcia pascal barclays capital worldnews