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The European Commission has warned Spain that 6 Autonomous Communities, including Catalonia, should cancel their tax on large-sized shopping centres because it may represent indirect State aid benefiting smaller shops and therefore damaging free competition. The Catalan Minister for Business and Employment, Felip Puig, announced legal actions to defend this tax, which was validated by the Constitutional Court. Catalonia’s shopping model has a great presence of small and local shops, mostly run by families with a small number of employees. In order to protect this model and make it compatible with new shopping malls and large-sized international shops, in 2000 the Catalan Parliament created a tax on shops larger than 2,500 square metres. Currently, it is set at €17 per year per square metre. The revenue collected is devoted to actions promoting local retail.

The Spanish Prime Minister, Mariano Rajoy, who is also leader of the conservative and Spanish nationalist People’s Party (PP), strongly criticised the announcement of early elections made by the Catalan President, Artur Mas, the evening before. Mas announced elections in Catalonia for 27 September this year, transformed into a ‘de facto’ referendum on independence. These elections are the only way Catalans can vote on this issue, taking into account the Spanish Government’s total opposition to even talking about self-determination demands, which were backed by an absolute majority of citizens in the last Catalan elections (held in November 2012) which themselves were already a plebiscite on having a legal vote on independence. However, as opposed to the British Government, Rajoy refused to even discuss these demands, has not made any concessions, and has showed total opposition, which has even involved the criminal prosecution of the Catalan President.

Catalonia ended 2014 with an annual inflation rate of -0.7%, the lowest rate since 1978, when records for the Spain’s Autonomous Communities began, according to data published on Thursday by the Spanish Statistics Institute (INE). The previous month, at the end of November, the annual consumer price index registered a rate of -0.3% in Catalonia. In the whole of Spain, the annual inflation rate at the end of December 2014 was -1%. This is the lowest rate registered since December 1961, when comparable data started to be collected. At the end of November, prices were decreasing by -0.4% in annual terms in Spain as a whole. Therefore, both in Catalonia and in Spain overall, last year ended with a significant price drop, mostly due to falling fuel prices.

The President of the Catalan Government, Artur Mas, has announced early elections to be held on the 27^th of September this year, which will become a ‘de facto’ referendum on independence from Spain. Before then, the Catalan Government and Parliament will continue to develop some basic state structures, such as Catalonia’s own tax administration and Social Security system. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing pro-independence party ERC have now “rebuilt” their parliamentary stability pact for the current term after weeks of public disagreements and confusion over the next steps of the self-determination process. After a long meeting on Wednesday evening between Mas, the ERC’s President Oriol Junqueras and representatives from the main civil society organisations supporting independence, they have also agreed on running separately but sharing the same road map to build an independent state from the day after the elections, if a majority of Catalans vote for this option. 

The number of passengers going through Catalonia’s main airport grew by 6.7% in 2014 compared to 2013. In total, some 37,559,044 people travelled through Barcelona El Prat Airport, the first time this has broken the 37 million mark. The number of flights also increased, by 2.7%, with 283,850 involving the Catalan capital’s main airport. Furthermore, the amount of transported goods increased by 2.4%, with more than 102,000 tonnes of cargo. The type of passenger that registered the highest increase was travellers from within the European Union, which grew by 10.5% in 2014. All the markets registered positive figures except European flights from outside the EU and the Schengen Area, due to a drop in Russian tourists. The Asian market grew by 18.4% and those of the Middle East and Africa by 14.8% and 13.8% respectively.

Despite a decrease in Russian visitors, Catalonia increased the number of international tourists it hosted during 2014. Some 16.7 million foreigners travelled to Catalonia last year, which sets a new historic record. In addition, it represents a 7.2% increase on 2013 figures. International visitors spent more than €15 billion during their stay, 6.1% more than in 2013. Therefore, foreign tourism accounted for some 7.5% of Catalonia’s entire GDP during 2014. Each tourist spent an average of €900 during their stay. The Catalan Minister for Business and Employment, Felip Puig, presented the figures on Wednesday and emphasised that the objective for future years is not so much to increase the number of tourists but rather to increase the revenue which they bring in. 

The Barcelona-based car manufacturer Seat, which is part of the Volkswagen group, ended 2014 with a 10% growth in sales. During last year, Seat sold 390,500 vehicles worldwide, which are produced in its factory in Martorell (Greater Barcelona). This plant increased production by 13.5%, reaching its highest level for 12 years. The factory has now achieved 5 consecutive years of growth. The company’s shining light during 2014 was the León model, sales of which increased by 50%, reaching 154,100 units sold, breaking its sales record. This type of car has become “the brand’s second pillar” after the Seat Ibiza, stated the company’s President, Jürgen Stackmann. During the last 2 years, Seat global sales have grown by 21.7%, surpassing their 2007 pre-crisis levels.

The President of the Catalan Government, Artur Mas, assessed on Tuesday the Executive’s work during 2014, which he found to be “positive” overall, although he admitted there are still many people in great need and many social and economic challenges ahead. Referring to the current debate on whether to call early elections transformed into a ‘de facto’ referendum on independence from Spain, Mas promised immediate decisions to be announced on Thursday. Before taking the definitive decision and after weeks of admitted “confusion”, the Catalan President wants to hold a last round of talks with the main civil society organisations supporting independence and the left-wing pro-independence party ERC – with whom the governing centre-right pro-Catalan State coalition CiU has shared a parliamentary stability agreement for the last 2 years. “I will not slack” in the self-determination process, Mas stated.

After weeks of negotiations, the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, and the President of the left-wing pro-independence party ERC, Oriol Junqueras, have still not reached an agreement on whether to call early elections and whether to run together or separately. These elections should become a ‘de facto’ referendum on Catalonia’s independence from Spain. On Friday, it seemed they were close to an agreement, but in the evening it was obvious they had still some issues to discuss. During the weekend representatives from both the CiU and the ERC called on each other to close the deal. However, on Monday, the deal was yet to be closed and the main civil society organisations behind the massive pro-independence demonstrations from 2012, 2013 and 2014 are starting to lose their patience. Furthermore, the rest of the political parties have been highly critical of the long weeks of talks.

The Fundació Gala-Salvador Dalí, which runs the surrealist genius’ museum in Figueres (near Catalonia’s Costa Brava and the French border), has purchased ‘Violetes imperials’ (‘Imperial violets’) from a private collector. The piece from 1938 is a dark creation, painted during Spain’s Civil War and just before the start of the Second World War. It will be on display at the museum from Tuesday onwards. The painting, the price of which has not been disclosed, belongs to the Catalan artist’s surrealist period, but does not employ the colours regularly used by Dalí. Nonetheless, ‘Violetes imperials’ does depict some of the symbols used by one of the world’s most important artists of the 20^th century. 

The left-wing pro-independence party ERC has accepted the last proposal put forward by the President of the Catalan Government, Artur Mas, to run separately in early elections but with a large part of civil society representatives and independents being included in the President’s candidacy. However, the ERC has not ruled out the possibility of also including civil society representatives in its own list and wants elections in March. Any such elections should become a ‘de facto’ referendum on independence. The Catalan President accused the ERC of “twisting” his proposal. Furthermore, sources of the Catalan Government criticised the ERC’s “intransigency” because “they have not moved from their initial stance” of running separately in elections taking place this winter. Mas initially wanted to run together but was not particularly in a hurry to call the elections. 

The President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, has sent a letter to the President of the opposition left-wing pro-independence party ERC, Oriol Junqueras, in which he has proposed 3 different formulas for early elections being transformed into a ‘de facto’ referendum on independence from Spain. Mas and Junqueras disagree about whether to run together or separately, and also whether these elections should be to firstly negotiate independence with Spain and later ratify independence through a referendum, or to directly proclaim independence and draft a Constitution. On Friday, after weeks of negotiations between Mas, Junqueras and the main civil society organisations backing independence, the Catalan President is making a public move to unblock the current situation, which is discouraging many pro-independence supporters. 

The Andorra-la Seu d’Urgell Airport kicked off its public and commercial activities on Thursday, and is able to host aircraft of up to 40 seats. The old La Seu d’Urgell’s airfield, in the middle of a Pyrenean valley and only 15km away from Andorra, has been updated to go beyond being a facility merely used by recreational light aircraft. From now on, small commercial airliners, charter flights and air taxis will be able to operate from this mountain airport very close to Catalonia’s and Andorra’s main ski resorts. The new facilities will be managed by the Catalan Government and Andorra, which will meet half of its operational costs. The Catalan Executive is currently negotiating with 8 companies that may be interested in flying from the airport. Furthermore, the permits needed to host flights from outside the Schengen Area are expected to be granted by the Spanish authorities during 2015.

Catalonia’s Supreme Court (TSJC) has stated that there are “signs” that the President of the Catalan Government, Artur Mas; the Vice President, Joana Ortega; and the Education Minister, Irene Rigau, “did not obey” the Constitutional Court’s ban on the symbolic independence vote, which took place on 9 November. On Thursday, 3 weeks after it accepted all the criminal complaints filed against Mas, Ortega and Rigau for having authorised and co-organised the non-binding vote, the TSJC issued the notifications justifying its decision. The Court considers there to be evidence suggesting they may have committed disobedience, perversion of the legal process and embezzlement offenses. Therefore, the high judicial body is launching a corresponding investigation, which will focus on the vote’s preparation between the Constitutional Court’s ban and the day of the vote itself.

On Wednesday evening, spontaneous demonstrations were organised in front of the French Consulate in Barcelona and in other places across Catalonia in solidarity with the victims and in condemnation of the Jihadist slaughter that killed 12 people in the Paris headquarters of the weekly satirical magazine ‘Charlie Hebdo’. On Thursday morning, hundreds of citizens gathered in front of the main Catalan town halls as well. Furthermore, Catalan authorities have also paid tribute to the victims on the day after the massacre. The President of the Catalan Government, Artur Mas; the Mayor of Barcelona, Xavier Trias; and the political groups of the Catalan Parliament all stood in front of their office buildings and observed a minute’s silence to pay homage.