Business

The economic recession has meant that Catalonia’s industrial production index decreased by 2.7% last year, according to the Spanish Statistics Institute (INE). In addition, the note indicated that the Catalan industrial sector has contracted for the last 10 consecutive months. However, Catalan industry had been less affected than the Spanish average, which plummeted by 5.9% in 2012. One severely affected sector was the production of long-life goods, in which car manufacturers are included, which decreased by 7.1% in December, accumulating 28 consecutive months in the red. Another sector with problems is the means of production, with a 7.3% decrease in December and 11 consecutive months of accumulated drops.

After having reached an agreement on the measures to increase competitiveness with the trade unions last week, the Japanese multinational car manufacturer finally confirmed on Monday that its Barcelona plant will be building Nissan’s new saloon car model as of July 2014. The decision will bring in a direct investment of €130 million, creating 1,000 direct positions in the Nissan factory and 3,000 indirect jobs in the Catalan automobile parts supply industry. After seven months of talks, including a critical period when Barcelona seemed to be out of the race, the Nissan managers and trade unions finally reached an agreement early last week, based on a 20% salary reduction for new workers and guaranteeing the oldest jobs. The President of the Catalan Government, Artur Mas, emphasised that Nissan’s announcement confirms that Catalonia is “an attractive and reliable country”.

The CaixaBank President, Isidre Fainé, is optimistic about 2013, which “will be better than the year left behind”. The attributable net profits of CaixaBank, Spain’s main bank, decreased by 78.2% in 2012 compared to the previous year, as the Catalan financial entity focused on fully restructuring its business and purchasing other financial entities in order to enlarge its customer base and reach 13 million clients. The Catalan bank’s customer funds increased by 19.6%, up to €288.57 billion and its loans portfolio grew by 20.1%, reaching €223.45 billion. Furthermore, CaixaBank allocated €10.3 billion for provisioning charges and write-downs. The Barcelona-based financial entity had an income of €6.74 billion and a net operating income of €3.17 billion. In addition, CaixaBank will keep its €500 million budget for its social work foundation.

After having ruled out Barcelona because unions refused to sign Nissan’s final offer of modifying working conditions and reducing salaries in order to increase competitiveness, the unions made an about-turn. With the Catalan Government’s mediation, the main union signed Nissan’s final offer and the two others (CCOO and UGT) presented their own cost reduction plan, accepting almost all of the company’s requirements, including the dual salary scale. After a day-long negotiation between the Catalan Business Ministry and the unions, CCOO and UGT agreed to sign Nissan’s agreement if the company guaranteed the jobs of the existing workers. Nissan has accepted and now the European branch will put its Barcelona plant forward to the Japanese headquarters, which will soon allocate the new car production.

The Barcelona-based company transported 14.8 million passengers in 2012, a new record for the airline. Vueling, created in 2004, transported 20% more passengers compared to 2011. The 14,794,857 customers meant a 77.7% occupancy rate over 108,433 flights, a 17.6% increase on the previous year, which led to the company closing with a profit for the fourth year in a row. Vueling is today the second biggest airline in Spain after Iberia and the third one in the number of customers, after Ryanair and Iberia.

After Nissan’s announcement that Barcelona would not build its new car model, the Catalan Government and the trade unions have been trying to persuade the Japanese company to change its mind. The six-month negotiation was derailed ten days ago, when Nissan considered the talks to be over as the unions refused to sign its final proposal. However, the company has not announced where the new car will be built yet. The union representing the majority of the Catalan plant’s workers has already signed Nissan’s proposal, but the unions CCOO and UGT – the main ones in Catalonia – have insisted on presenting their own proposal, based on Nissan’s need to make reductions of €30 million. A few days ago, Nissan stated that it was too late, but now it says it will study the union’s proposal to look at the details.

After an 8.3% drop in car sales in 2012, SEAT announced it would lay off 400 temporary workers and it would reduce administration and commercial costs, to the equivalent of 340 additional jobs. Finally, after three days of negotiation, the car company and the workers’ representatives have signed an agreement by which the workers will lose part of the extra hours accumulated but there will not be additional layoffs or a salary reduction. However, the 400 temporary workers will be made redundant and will have to leave the company. Additionally, the Spanish Government has announced that it will double the public budget to stimulate car purchases.

The Port of Barcelona, one of southern Europe’s main transport infrastructures, continues to bring positive results. Over the last year the Catalan harbour unveiled two new container terminals, an investment to consolidate the trend of attracting greater container traffic, as the 8.7% increase shows. In addition, the number of cars transported increased by 9.8%. These figures are to be added to the 12% increase in container exports and 25% growth of car exports through Barcelona’s harbour in 2011. Besides, the port in the capital of Catalonia continues to lead the cruise ship sector in Europe, transporting 2.4 million passengers and almost reaching last year’s record high of 2.6 million cruisers.

The world’s main event showcasing cell phone and mobile technology, the Mobile World Congress, is starting the final countdown to open its doors in one month’s time in Barcelona, as it has been doing each year since 2006. In its 8th year in the Catalan capital, the MWC, which is organised by GSMA, will move from Montjuic to the Gran Via venue of Fira de Barcelona, in order to increase its space by 30%. Between, the 25th and 28th of February, this trade fair, expert conference and industry meeting point will host more than 70,000 visitors from 200 different countries, 300 speakers and 1,500 companies, 70 of which are Catalan. The congress will bring in more than €300 million to Barcelona’s economy and will create 6,500 temporary jobs.

Out of the 57.7 million foreign tourists who visited Spain last year, 25% of them went to Catalonia, which was the most visited destination. 14,447,814 foreign visitors travelled to Catalonia in 2012, a 9.9% increase compared to the 2011 figures. This figure is particularly relevant compared to the Spanish average: the total number of foreigners visiting Spain only increased by 2.7% last year. The largest market sending tourists to Catalonia continues to be France. Regarding the data for December, the number of foreign tourists visiting Catalonia only that month was 622,258 people, a 7% increase compared to data from December 2011.

The Barcelona-based brand, which is part of the Volkswagen group, had announced an 8.3% drop of car sales in 2012, compared to 2011, due to the recession in Spain, which is Seat’s main market. The increase of sales in foreign markets could not balance out last year’s results. In order to recover from this drop in sales, the company has decided to slow down the production of new cars and 400 workers are to be made redundant. Seat hired 600 temporary workers a few months ago due to positive results in 2011, two thirds of which will be laid off. The company will discuss its plans with the trade unions.

Trade unions refused to sign the Japanese company’s final offer to increase the competitiveness of Barcelona’s plant by reducing salaries and changing working conditions, so Nissan announced the end of the talks after 6 months of negotiation and meditation by the Catalan Government. Before Christmas, the Japanese company had already warned the unions that talks were coming to an end as the production of the new sedan car needed to be allocated. Back then Nissan presented a final offer, which has however been modified in the last few days. Once the agreement seemed to be imminent, Nissan floated the idea of a two-day reduction in holiday days, which the unions immediately rejected. Nissan warned that its Barcelona plant might now face “a slow-death scenario”.

The main Catalan airport is increasing the number of intercontinental flights in terms of both destination and frequency, one of the strategic drives implementing its expansion plan. Barcelona’s Airport already has 31% of the intercontinental traffic in Spain, despite the fact that the partially state-owned Iberia’s international flights abandoned the Catalan airport years ago in favour of Madrid Barajas. Barcelona Airport has attracted other airlines, such as Emirates, Qatar Airways and Turkish Airlines, and has specialised in connections to the Middle East and Asia, although it also has flights to the Americas. Last week, there was a press release that stated that 35.15 million passengers went through Barcelona Airport in 2012.

Combined with the salary reductions and the taxation increase, the rise in inflation means that Catalans have lost purchasing power. The spending of the average Catalan family increased by some 110 euros per month compared to 2011 in order to buy the same amount of goods and services, while the net revenue decreased. In the whole of Spain, the inflation rate for the last 12 months was 2.9%, affected by the VAT increase approved by the Spanish Government. In Catalonia, it was higher due to fees adopted by the Catalan Government in order to reduce the public deficit: namely those affecting drug prescriptions and university education.

Grimaldi will build a new short-distance terminal in Barcelona Port and run it for a 15-year period, which has the possibility to be extended for a further seven and a half years. The Italian company wants to increase its presence in the Catalan capital, from where it currently runs four regular ferry lines linking Barcelona to Civitavecchia (Rome), Livorno (Florence), Porto Torres (Sardinia) and Tanger (Morocco). The new building will be ready by next summer and will be able to serve 1,800 passengers. It will cover 3,750 m2, have three stories and three boarding bridges, and it will be surrounded by a large esplanade where cars can wait before they board the ferry.