Politics

During the first two thirds of 2013, the Catalan Government deficit amounted to €2.05 billion, equivalent to 1.06% of Catalonia’s GDP. The figure corresponds to 67% of the 1.58% deficit target imposed by the Spanish Government to the Catalan Executive for the whole year 2013. Meanwhile, the entire Spanish public sector posted a deficit corresponding to 5.07% of Spain’s GDP in the same period, although data from municipalities is still pending to be included. The figure already represents 78% of the total 6.5% deficit target that the European Union allowed Spain for the entire year 2013.

The University College London and the Public Diplomacy Council of Catalonia conference on “Self-Determination Processes in the EU” was attended by more than 100 people. Scholars and public figures discussed the Catalan and the Scottish cases in relation to the EU. Honorary Director-General of the European Commission and Oxford Professor Graham Avery stated that the EU “should not get in the way of the people in deciding their future” but he admitted the situation in Catalonia was “less clear” than in Scotland. Professor Emeritus at the University of Edinburgh David Edward said it all depended on Madrid’s decision to accept or to reject the outcome of a referendum.

At a meeting with Catalan President Artur Mas, the Spanish socialist party (PSOE) leader Alfredo Pérez Rubalcaba offered support for constitutional reform in Spain, but rejected the idea of a referendum on independence. Mas said that the legal framework cannot be used to “abort” the plans for an independence referendum. He added that it is an “enormous” mistake to think that. Rubalcaba said that the constitutional reform offer is an alternative “to a vote for separation”.

In an interview with CNA, former United Kingdom’s Secretary of State for Scotland Michael Moore explained he saw no reason why the European Union would exclude any new state. However, David Cameron’s Minister highlighted that “it is for states and parts of states to resolve themselves politically and then the international community to respond to that decision”. The Liberal-Democrat politician added that it “is fundamental” to “recognise that this is a decision for the people in that country itself”. Moore asserted his belief in International Politics and in Democracy by referring to the upcoming Scottish Referendum for Independence.

The Spanish Prime Minister, Mariano Rajoy, and the President of the Catalan Government, Artur Mas, shook hands at the entrance of the Economic Forum of the Western Mediterranean. Mas wanted to welcome all the event’s participants since the forum is held in a Catalan Government building and is co-organised by the European Institute of the Mediterranean (IEMed), which is mostly funded by the Catalan Executive. However, in protest against the Spanish Government’s veto to authorise him to deliver a short welcoming speech, Mas did not stay to listen to Rajoy’s opening speech. Later today, in the Catalan Parliament’s government control session, Mas stated that “there are no protocol problems, but protocol impositions that generate problems”.

The Catalan Government approves a decree to transform the Catalan Institute of Finance (ICF) into a publicly-owned bank to support business and particularly SMEs. With this change, the Catalan Executive’saim is “to strengthen the ICF’s role as a tool to support business and the productive economy”, as the Government’s Spokesperson, Francesc Homs, told the press on Tuesday. The measure is part of the Parliamentary Stability Agreement signed between the Left-Wing Catalan Independence Party (ERC) and the governing Centre-Right Catalan Nationalism Coalition (CiU).

The tension between the Spanish and the Catalan Executives is increasing. The Spanish Government refused to allow the President of the Catalan Government, Artur Mas, to deliver a short welcoming speech to the participants of the First Economic Forum of the Western Mediterranean. This event will take place in Barcelona on Wednesday, within the headquarters of the Union for the Mediterranean Secretariat (UFM), a building owned by the Catalan Government. It will bring together 10 Ministers of Foreign Affairs and it will be part of the 5+5 Dialogue, which is formed by 5 EU Member States and 5 North African countries. The Spanish PM, Mariano Rajoy, will chair the meeting and he only allowed Mas to come as a part of his delegation, Mas will be permitted to join the meeting but not to speak. In similar meetings, presidents of other Spanish Autonomous Communities, including Catalonia, have been allowed to address participants.

Graham Watson, one of the leaders of Liberal Group at the European Parliament emphasised that “the EU has to be a sufficiently strong but sufficiently flexible entity to allow people to express themselves within it”. This “may mean some changes to boundaries; but we are democrats and if that is what the majority wants then that is what must happen” added the leader of the third largest group at the Strasbourg Parliament. According to Watson, the debate about Catalonia or Scotland’s possible independence “is a very important issue for the European Union”. The British politician sent a clear message to Spain: “This is not a period of kings and nation-states, it’s a period of people working together through their democratically-expressed will and that should be as clear to a Castilian as to anyone else”.

The President of the Catalan Government, Artur Mas is the most senior public figure in Catalonia, just after the King of Spain and the Spanish Prime Minister. However, at Thursday’s scheduled dinner with the main Catalan business association ‘Foment’ and the Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, a last-minute change in the protocol put Mas in second place. The Catalan President considered that “conditions had changed” and as a protest he announced he was not going to the dinner. Instead, the Catalan Minister for Business and Employment was representing him. ‘Foment’ has been ambivalent regarding Catalonia’s self-determination process, although it supports the claim for finding a negotiated way out of the current political situation by organising a legal referendum.

The Spanish Government has sent a Budget Plan to the European Commission, following the new rules giving Brussels greater control on Member State finances. The plan’s scope includes all government levels in Spain. In the plan, the Spanish Government imposes a global budget adjustment of €8 billion on the Autonomous Community governments, including Catalonia’s, to be achieved within the next two years. €2.14 billion would come from increasing revenue next year, since Madrid considers that the Autonomous Communities can still increase their own taxes, particularly those linked to the environment. €1.93 billion would come from further budget cuts. This would total €4.07 billion in 2014, which would roughly be repeated in 2015.

One of the six ‘fathers’ of the Spanish Constitution, Miquel Roca, who currently leads one of the largest law firms in Spain, stated that the Constitution does not ban a referendum on Catalonia’s self-determination. “It is a matter of political will”, since Catalonia is recognised “as a nationality” by Spain’s main law, stated the respected lawyer, who also used to be a leader of the Centre-Right Catalan Nationalist Coalition (CiU). In front of a committee of the Catalan Parliament, Roca remarked that it would be “absurd” to call for a referendum at Spanish level, as it would only be binding in Catalonia. In the rest of Spain it would not be binding, emphasised Roca, as “it is said in Article 92”. This article reads that non-binding referendums can be called regarding issues of extreme importance.

The Catalan Government has published a report listing all the Spanish Executive’s disloyalties towards Catalonia including not respecting legislation, devolved powers and cultural aspects. The 50-page document has a chapter quantifying the costs of such disloyalty, which totals €9.375 billion, according to the Catalan Government. €5.748 billion correspond to infrastructure which has not been built; €672 million to a reduction in institutional transfers; €1.715 billion to spending increases due to the Spanish Government’s unilateral decisions; and €1.239 to revenue reductions due to similar unilateral decisions which have never been compensated. The report does not take into account the so-called fiscal deficit – the €16.5 billion that each year Catalan tax-payers transfer to the rest of Spain. The Catalan Government emphasised that there has been “a permanent disloyal activity” since 2000.

The Catalan Government will receive €1.7 billion less from the Spanish Liquidity Fund (FLA) in 2013 than had been previously foreseen. The news was announced by the Spanish Government in mid-October, with only 10 weeks left before the end of the year. Madrid has justified the decision by linking the FLA to the plan to lend money to public bodies in order to enable them to pay suppliers. The money to pay suppliers will now be deducted from the FLA, changing the previous conditions. As a consequence, the Catalan Government will not be able to fund the 1.58% deficit it had allowed, since the FLA is its only access to liquidity. Now, Catalonia will only have money for the previously-foreseen 0.7% deficit. The Catalan Executive feels “tricked” as “it is not understandable that the Spanish Government agrees to a greater deficit and later cannot fund this deficit”.

On Saturday, Spain’s National Day, those opposing Catalan independence and defending Spain’s unity organised a large-scale demonstration in Barcelona. In absolute terms, the demonstration was far from gathering as many people as the Catalan independence demonstration a month ago or that of 2012. However, it was still a massive concentration of people, gathering around 30,000 people according to the local police, 105,000 according to the Spanish Government and 160,000 according to the organisers. The People’s Party and the anti-Catalan nationalism party Ciutadans (C’s) attended the demonstration. The organisers had been received on Thursday by the Presidents of the Catalan Government and Parliament.

The People’s Party (PP), which runs the Spanish Government, used its absolute majority in the Spanish Parliament to pass a controversial reform of the Education System, which is not supported by the teachers’ unions or the rest of the political parties. Among several aspects, the new law goes against the Catalan school model, based on the linguistic immersion principle, which guarantees that all pupils master both Spanish and Catalan by the end of their studies, ensuring equal opportunities. The reform is the personal project of Spain’s Education Minister, José Ignacio Wert, who used to collaborate in far-right television channels. The Catalan Education Minister, Irene Rigau, confirmed that she will take the new law to the Constitutional Court and stated that the reform will not be implemented in Catalonia in 2014.