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Unemployment has fallen by 15,400 people in Catalonia during the second quarter according to the latest Labour Force Survey published this Friday by the National Statistics Institute. The overall totals indicate that 821,600 of the working population in Catalonia are unemployed at a rate of 20.95%, 130,700 more than a year ago. The state total shows an increase in unemployment in the second quarter, bringing Spain’s total to 5.7 million people without work, 24.6% of the working population. With nearly a quarter of the working population unemployed, the figures are higher than the historical record reached in 1994 during the last crisis.

The Minister for the Economy, Andreu Mas-Colell, warned the Spanish government that the Generalitat "will never accept political conditions" in exchange for capital from the Regional Liquidity Fund (FLA). He repeated the phrase three times after revealing that the Catalan government has accepted financing from the FLA and has so far employed “all available instruments of liquidity” but “only” those that are linked to exclusively economic conditions. The minister admitted that the Catalan government will welcome the FLA due to “the liquidity pressures” that the Generalitat is facing. The specific amount of funding has not been revealed but Mas-Colell assured that “it will be what is necessary.”

Catalan Parliament approved on Wednesday the proposal for a new fiscal pact for Catalonia by an overall majority. The proposal defends the creation of an independent tax agency with powers to raise and manage all taxes in Catalonia. According to the Catalan President, Artur Mas, it involves starting a “difficult” negotiation with the government of Spain but it was either “now or never”. If achieved, this new fiscal arrangement would be similar to the one enjoyed by the Basque Country, that collects its own taxes and has been able to keep its debt under control. Therefore, it could help Catalonia getting out of the crisis. Currently, out of the all the territories, Catalonia is ranked third for the amount it pays in taxes, but is ranked tenth for the amount it receives in return. The new arrangement would see Catalonia leaving the common system established by the Organic Law on the Financing of the Autonomous Communities (LOFCA) and establishing bilateral fiscal relationships with Spain.

After several controversies regarding the possible transfer of the Zoo to outside Barcelona, management has opted for new breeding programs of species such as the Komodo dragon and also welcomes a new elephant. They have also decided to build a dolphinarium alongside the Zoo with private funding, which would end the project to create a marine zoo at the Forum.

Catalan interior minister Felip Puig said that weather conditions have improved for dealing with the fires in the Alt Empordà region, saying this morning that he was “reasonably optimistic” that the it would be under control this Tuesday. The fires are currently in a reasonably stable state. The blaze was started on Sunday by a discarded cigarette butt, affecting an area of 13.000 hectares. Weather conditions were favourable for tackling the blaze and remained so for much of Tuesday.

The Pro-Language Platform, an organisation that works to promote the Catalan language, reports that only 6% of products sold in supermarkets meet the Consumer Code of Catalonia, which requires that products are labelled in Catalan. In a study, the organisation revealed that the market is not yet standardised, claiming that 94% of products do not meet the law’s requirements and that this is disrespectful to the consumer. The organisation reports that although large multinational companies such as Danone, Nestle, Coca-Cola, Gillette and Philips respect the laws of other linguistic areas, they do not abide by the labeling requirements in Catalonia.

Catalonia has not asked for a rescue from Spain, said the spokesman of the Catalan government, Francesc Homs. At a press conference, Homs denied reports that Catalonia is seeking a full bail-out, but admitted the government is considering participating in the Regional Liquidity Fund. “This is a treasury mechanism”, said Homs, who added that by using the fund Catalonia would not have to meet “any new set of conditions”. When presenting the €18bn fund last week, the Spanish government said the aid will be only offered under “strict conditionality”.

Barcelona is overcoming the effects of the economic crisis. So says, the President of Tourism of Barcelona, Joan Gaspart, who revealed spending by tourists in Barcelona in 2011 came to on average 741 euros, 124 euros more than in 2010. In the first six months of 2012, the number of tourists has increased by 1.69%, overnight stays by 2.26%, and credit card spending has increased by 27.08%, compared to the same period of 2011. Gaspart stressed that these increases, although "modest", show that the industry "is doing a good job" to the point where predictions given for the second half of the year also indicate an improvement.

Primavera Sound, Sónar or Cruïlla BCN. These are some of the music festivals that the city of Barcelona hosts. However, according to Marcelo Rosero, director of the Salsa & Latin Jazz Festival, the city “lacked high quality salsa and latin jazz music”. This new festival is taking place in a square at Poble Espanyol (Barcelona). Rosero has compared the programme of the festival with a restaurant saying that it has an “exquisite menu” and a “buffet where all is jewellery”. The festival will have “top-level bands” and its “musical acts are very important internationally”, Rosero has concluded.

The Spanish Economy minister said on Monday that the state will “absolutely not” require a full rescue package such as the one taken by Greece, Ireland or Portugal. Speaking at a parliamentary hearing, De Guindos said that the Spanish economy is competitive and has “capacity to grow” unlike other struggling European countries. However, markets seem unconvinced by Luis de Guindo’s remarks, pushing the ten-year Spanish bond yields to more than 7.5%. Doubts about the autonomous communities financing capacity are also affecting the situation, especially after Valencia announced that it will ask for about 3,500 million euros from the Spanish Liquidity Fund. Catalonia, the most indebted community in Spain, is still considering whether to use the money from the fund, and will only decide after studying “the set of conditions” attached to it.

The death toll of the devastating wildfires in the Alt Empordà region, in north-east Catalonia, has risen to four this Monday, after a 64 year-old Frenchman died in hospital from his burns. He suffered 80% burns to his body. A father and daughter died on Sunday after jumping off a cliff to escape the flames in Portbou. A third man died of a heart attack in the small town of Llers. Eight injured people were admitted in hospitals in Catalonia. Six of them are in a critical condition, according to the Health Department. In total, forty-seven people have been treated for injures during the fires, although only eight remain in hospital.

All inhabitants in Alt Empordà, North-East Catalonia, are told to stay at home as forest fire rages out of control. A man and his daughter were killed in Portbou after jumping off a cliff to escape the flames. A third person died of a heart attack. Main roads and train lines in the area, including connections to southern France, have been cut off. Strong winds of up to 90 km/h have fanned the blaze, which started in the town of La Jonquera, near the border with France. There are already 13.000 hectares affected.

A combination of Spain’s economic predictions and Valencia’s formal request to the central government for financial assistance shook the markets on Friday, despite the stringent the austerity measures passed this week and the approved deal to lend up to 100bn euros to the Spanish banking sector. The Spanish government expects an unemployment rate of 24.3% and a fall in GDP of -0.5% in 2013, expecting to be out recession by 2014 and 2015 with a GDP growth of +1.2% and 1.9% respectively. The Valencian Government has requested assistance from the Spanish Government, making it the first autonomous community to ask for emergency financing from the regional liquidity fund.

Ryanair, the low cost Irish airline, announced this Friday the closure of four flights from Barcelona due to the rising costs approved by the Spanish government and imposed by the AENA, the institution responsible for Spanish airports and aerial navigation. Ryanair has also cancelled eleven flights in Madrid, including a service from Girona. Michael O’Leary, the Chief Executive of Ryanair, announced that the services will stop from November. Barcelona Airport will lose connections to the East Midlands, Leeds Bradford, Hamburg and Trieste.

The Spanish Congress has ratified a new austerity package this Thursday with 180 votes from People’s Party (PP), 131 votes against made up by the other parties and one abstention from the Unión del Pueblo Navarro (UPN). The new measures include the suspension of the Christmas bonus for public sector officials, an increase in VAT, and a reduction in unemployment benefit after the sixth month. The Spanish finance minister, Cristóbal Montoro, defended the measures on the grounds that they are "necessary sacrifices" to enable economic recovery and that "giving up is not recommended or possible". Various groups have protested against the measures, with over 80 demonstrations across the country.