Regional governments carving up secret deals

Even though they are hiding it, the Ministry of Finance and the Catalonian government's Economic Council are holding meetings aimed at increasing the region's deficit objective beyond 1.2% for 2013.

Mas-Colell wants the objective between 1.8% and 2%, but Montoro is leaning toward 1.5%. Madrid leader Ignacio González reiterated his disapproval yesterday to the deficit objective change, and other regions backed his view.

"This involves our national deficit objective, so everyone should be treated the same," he said. The Ministry of Finance is wrong if it believes that it can quell Catalonia's sovereigntist efforts by cutting a deficit deal for the region. Others have used this kind of low political maneuvering with short-lived results and dire later consequences. Will the same happen here?