The Economic Agreement

Its genesis and historical evolution

Gregorio MONREAL ZIA, Roldán Jimeno Aranguren

Following the abolition of the charters during the Carlist war (1872-1876), the President of the Central Government, Cánovas del Castillo, negotiated an Economic Accord with the Provincial Council of Vizcaya (1878), which was subsequently joined by the provincial councils of Álava and Guipúzcoa. This preserved an important residue of the region’s special status and consisted of establishing a specific sum for each of the provinces raised for the state in relation to each of the major taxes. The total sum of the contributions to be paid to the central government was known as the quota. The historical Accord was renewed in 1887, 1894, 1906 and 1925. The Franco regime abolished the institution in Vizkaya and Guizpúzcoa (1937) but maintained it in Álava, where it was renewed in 1952 and 1976. With the arrival of democracy, the Economic Accord was reinstated in the Guernica Statute of Autonomy (1979) and legally articulated via Law 12/1981, of 13 May.

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The Economic Agreement