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Catalonia already approved its own spending limit through a law of its own last September. The Spanish Vice President, Soraya Sáenz de Santamaría, explained that the new Budget Stability and Sustainability Law will introduce “mechanism corrections” and “almost automatic” sanctions for public administrations that do not meet the deficit objectives. In addition, before approving their budget, the Autonomies and large city town councils will have to commit to a spending limit and present detailed reports on several aspects of the budget. However, she stressed that each autonomous government will have the freedom to allocate resources.

Two goals from Alexis and Sergi Roberto gave Barça a 1-2 win in Pamplona against Osasuna which safely sees them through to a Spanish Cup quarter final clash with Real Madrid. The first leg, the first ‘clasico’ is set for 22h00 CET January 20th.

CaixaBank and Visa Europe will begin installing the system enabling “contactless payments” to be made throughout Barcelona. The system consists of paying for goods valued at less than €20 by passing a special credit card in front of a sensor, with no need of actually introducing the card anywhere or typing any code. The system will become fully operational to coincide with the Mobile World Congress, which starts on February 27th. Barcelona will be the first city in Europe where the contactless payment method can be used, ahead of London, which aims to have it ready for the Olympics this summer.

The Catalan airline will invest €325 million in increasing the number of destinations and frequency of its flights from Barcelona El Prat Airport. Vueling will base 28 planes at Barcelona, after having bought 5 new aircraft. These initiatives demonstrate that Vueling continues with a strategy to consolidate Barcelona Airport as “a true hub” for intercontinental flights. The Catalan airline expects that up to 2 million of its passengers will change flights at Barcelona.

In the last number of weeks, regional governments in Spain have been taking the blame for the deficit, and in the past week have done so at an international level. However, Spain’s Central Government is responsible for 63% of the country’s deficit and 75% of public debt, despite controlling less than half of public expenditure and having far greater control over revenue. Regional governments have produced less than 20% of Spain’s public debt and in 2011 were responsible for 33% of the country’s deficit, despite representing around 40% of the public expenditure total and managing the most expensive and socially-rooted policies (healthcare, education, social grants, public transportation, etc.).

The Brazilian player travelled to Paris, with FC Barcelona’s permission, to finalise his contract with Paris Saint-Germain. The PSG made him an offer that he wants to accept it. Barça Manager, Pep Guardiola, gave him a free hand.

The Spanish Finance Minister, Cristóbal Montoro, announced that the Central Government might heavily fine the governments of Autonomous Communities that do not meet the deficit objective. Montoro, from the People’s Party (PP), met with the regional governments run by his party to prepare a common position on the issue. On the same day, the Centre-Right Catalan Nationalist Coalition (CiU) gave its support to the Spanish’s Government decree to cut public spending and increase taxes, announced at the end of December.

The Irish low cost airline, Ryanair, has announced it will transport 3 million passengers through the Girona-Costa Brava Airport, where it will operate a total of 59 routes. Ryanair’s Vice President, Michael Cawley, explained that after a long negotiation process an agreement has been reached with the Catalan Government. “It’s not 100% our agreement, it’s not 100% the Government’s agreement, so it’s probably a good agreement” he said ironically. Ryanair and the Catalan Government have been arguing over the last year about the airline’s presence in Girona and Reus airports.

‘Black Bread’ (‘Pa Negre’), which was shot in Catalan, will represent Spain at the Oscars. Literature Nobel Prize winner Mario Vargas Llosa, chef Ferran Adrià, soccer player Gerard Piqué, tenor Josep Carreras, artist Miquel Barceló, filmmaker Isabel Coixet, chef José Andrés, psychiatrist Luis Rojas Marcos and dancer Rafael Amargo are some of the celebrities who have participated in a video sponsoring the film in its quest to win an Oscar nomination. The film depicts the horrible period after the Spanish Civil War through the experiences of a young boy living in rural Catalonia.

Barcelona City Council launched a plan to improve street cleaning. The plan aims to change the perception of residents and visitors of the city by fostering street irrigation, better waste collection and increasing the frequency of cleaning teams, among other initiatives. The city’s downtown and other entertainment areas will also have more police on patrol to prevent people urinating on the streets.

The Catalan President, Artur Mas, has met with the UK Deputy Prime Minister, Nick Clegg at a summit of European Liberal leaders. He stressed that Catalonia is doing “its homework” despite the excessive and “continuous fiscal drainage” from the Spanish State, which “is unprecedented in Europe”. “European leaders must understand” Catalonia’s situation, Mas said. “We need to explain ourselves” […] “because otherwise the only image that is received abroad is distorted”. He also explained that Catalonia’s GDP is the size of Portugal’s and Finland’s, and has an export level similar to Denmark. Mas also criticised Rajoy’s recent tax increase.

Hoteliers around Catalonia faced a difficult Christmas tourist season with occupancy rates that were below 50% in some areas. The only exceptions could be found in areas where snow attracted skiers, such as Val d’Aran and adjacent counties. In those areas there was an occupancy rate of between 70% and 85%. Rural tourism suffered its poorest results and does not forecast a recovery for 2012.

The Argentinean star is named by FIFA as the best player of 2011. This is Messi’s third straight Ballon d’Or Award. Messi equals Platini, Cruyff and Van Basten, the only players to ever win three Ballon d’Or titles. The Barça boss, who won 5 titles with FC Barcelona in 12 months, beat last year's winner, José Mourinho, and Sir Alex Ferguson. Guardiola dedicated the title to his assistant coach, Tito Vilanova. Besides, 5 Barça players are in the FIFA's Best Eleven of the Year: Alves, Piqué, Xavi, Iniesta, and Messi. Two of them are Catalan and four are home grown players.

Espanyol and Barça shared the points in the season’s first Catalan derby after FC Barcelona hit the woodwork on three occasions. Cesc Fàbregas opened the scoring within the first quarter of an hour and Alvaro hit a late equaliser. The draw leaves Barça five points behind Real Madrid in second spot.

The Spokesperson for the Catalan Government has said that the new Spanish Economy Minister’s proposal goes against the Constitution and Catalonia’s self-governance. The Basque Country is also against the measure announced by Luís de Guindos in an interview with the Financial Times. He said that the crisis “was an opportunity to impose hard conditions and measures” on the Autonomies; he also added that before the Autonomies pass their budget, the Spanish Government will have to approve it. The next day, the Spanish Vice President refused to go into detail on the issue but stated that every administration has to commit to the deficit objective.