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The Catalan Government will reduce department expenditure by 3.8%, public sector prices will increase and real estate assets will be sold. In addition, a symbolic tourist tax and a universal fee for each drug prescription will be introduced. The Catalan Finance Minister, Andreu Mas-Colell, insisted that next year’s budget continues with the two-year adjustment plan, which has been designed to reach a 1.3% deficit objective in 2012. Basic welfare services and security and judicial policies are the areas least affected by the reductions. In the next few weeks, parliamentary negotiations will take place to approve the final budget.

In order to foster transparency, almost all the Catalan Members of the European Parliament have asked the European Commission to supervise the Catalan Government's budget, and other “regions of systemic importance”. Catalonia’s GDP is as big as that of Finland and Portugal. MEPs from CiU, ERC, ICV, and the PP believe that this procedure will prove Catalonia’s reliability and rigour, and will subsequently have a positive effect on the international financial markets. The PSC is looking at possibly joining the initiative.

The winner of the Spanish Elections, Mariano Rajoy, outlined his government programme at the parliamentary debate on his approval before being officially appointed Prime Minister. Rajoy, without revealing any details, talked about redefining public powers, reforming public administrations, homogenising welfare policies and ensuring market unity. The Centre-Right Catalan Nationalist Coalition (CiU), the Catalan Socialist Party (PSC), the Catalan Green Socialist and Communist Coalition (ICV-EUiA) and the Left-Wing Catalan Independence Party (ERC) warned Rajoy of not affecting Catalonia’s self-government with his reforms.

Just like every Christmas, traditional Living Nativity Scenes around Catalonia are on show, this year with an expected increase of attendance despite cuts in public subsidies. Towns are unwilling to let budget cuts affect them and they have combined imagination, volunteer work and citizen involvement to maintain the tradition.

La Masia, FC Barcelona’s football school, dominated Club World Cup. Barça won the final against Santos with 9 home grown players in starting line up. Three home grown players also the scorers: Messi, Xavi and Cesc Fàbregas.

Santos FC vs FC Barcelona: Barça becomes legendary after winning the FIFA Club World Cup. The Catalans were three up at half time after goals from Messi, Xavi and Cesc, with the Argentinean rounding the game off with a fourth after the break.

The Catalan Socialist Party (PSC) is holding its 12th congress to renew its leadership and discuss its entire political project. After having lost the last elections, the Catalan Government and many town halls throughout Catalonia, the PSC feels detached from the majority of voters with many believing that it has lost its way regards it political project. Its attachment to social-democratic values, its connection with the Catalan municipalities, its defence of Catalan interests in Madrid, and the relationship with the Spanish Socialists are the main issues. Three mayors announced their candidacy to lead the party, which means that a synthesis looks more likely than a full renovation.

The away leg of the UEFA Champions League will be played in Germany on February 14th and the return leg will be played at the Camp Nou on March 7th. Ballack is the marquee player for Bayer Leverkusen, the team that finished second to Chelsea in Group E, beating out Valencia and Genk.

Sant Joan de Déu Hospital in Greater Barcelona has become the first facility in the world to assist a woman who lost her two ovaries to get pregnant. A decade ago she had to have her ovaries completely removed because of two tumours. Ovarian tissue was frozen, kept for ten years and now re-implanted. The patient has had her period again and, thanks to in vitro fertilisation, is now pregnant.

The Catalan Minister for Finance, Andreu Mas-Colell stated in a press conference that because of the Spanish Government’s refusal to pay them the promised €759 million, the Catalan Government will be short of cash for the remainder of the year. Mas-Colell explained that Catalan public employees would receive most of their Christmas bonus with a one week delay. In addition, service providers will also be paid later. Visibly angry and arguing that they had not been previously informed about the measures, union representatives decided to leave the negotiation table with the Catalan Government where talks had been taking place about next year’s salaries, working conditions and staff numbers.

The Catalan theatre group Comediants, famous for its magical performance at the closing ceremony of the Barcelona Olympics, simulate their rebirth through the myth of Persephone. Faithful to some of the elements that have characterised the group’s trajectory, for the first time they play a musical. Persèfone encourages the audience to travel between life and death together with extravagant characters and fears.

FC Barcelona vs Al-Sadd ended with goals from Adriano (2), Keita and Maxwell. The goals put an end to Qatari club Al-Sadd’s participation in the competition, and Barça will face Santos FC from Brazil in Sunday’s title decider. However, Barça’s striker David Villa broke his tibia and might be off for 4 to 5 months.

Public employees have taken to the streets to put pressure on the Catalan Government during the negotiation of next year’s budget. The Government proposed 19 measures affecting public employees and aimed at saving €625 million in 2012. They include salary reductions, modifications in working conditions and review “of temporary staff”. Negotiations began on November 30th and, despite some temporary suspensions, they are on-going. The Catalan Government wants to close a deal as soon as possible, and unions want to keep negotiating until next year’s budget approval.

Prices have increased by 3% over the past 12 months. This represents a fall in the annual inflation rate compared to that registered in October (3.1%). In Spain as a whole, November’s annual inflation rate was set at 2.9%. The decrease in the price of medication and fuel is behind the slight annual price reduction. However, in Catalonia the monthly inflation rate increased in November by 0.4% compared to those registered in October, mainly due to an increase in the price of clothes.

FC Barcelona's Manager, Josep Guardiola, stressed the pride that the team have in maintaining such a good level over three years and said that now, in the Club World Cup, Barça have to deserve to be in the Final against Santos, by playing well and winning. Guardiola admits that the Club World Cup is the title that he’s most excited to play for. "Getting here is very complicated, really, really difficult," he stressed. Guardiola was very direct and clear with his answer to the question about the Spanish sports newspaper Marca's leading cover story claiming Villa is for sale: "Marca is lying".