Politics

“2013 is done. We now need to think about 2014”, summed up the Catalan Finance Minister, Andreu Mas-Colell, after finding out about the 1.58% deficit target imposed yesterday by the Spanish Executive. Mas-Colell considers this target to be “intolerable” since it “asphyxiates” Catalonia. The Catalan Executive was waiting to find out this figure to approve its definitive budget for the current year, but considering the low deficit target it is now considering extending the 2012 budget for the whole of 2013 – as it has been doing so up until now. The Catalan Government will make the final decision on the issue next Tuesday. Furthermore, Mas-Colell warned that a €1.7 billion budget adjustment will be needed in 2014 that will be required to increase one-off revenue since the Catalan Government “cannot spend less than in 2013”.

The Catalan Finance Minister, Andreu Mas-Colell, accuses the Spanish Government of “asphyxiating” the Autonomous Communities. The 1.58% deficit target imposed to the Catalan Government represents €2.6 billion of further budget adjustment compared to last year’s budget, which ended with a 1.96% deficit. Mas-Colell denounced that the Spanish Executive is “keeping for itself the greatest share of the deficit pie”, while it is only responsible for 50% of Spain’s public spending. The Spanish Government is setting itself a deficit target of 5.2% for 2013 and most of the flexibility allowed by the European Union, which authorised a 6.5% deficit for Spain’s total public sector. Meanwhile, the Autonomous Communities have a deficit target 4 times stricter, although they manage 36% of Spain’s total public spending as well as basic services such as healthcare and education.

Artur Mas, the President of the Catalan Government, challenged the opposition parties to present a vote of no-confidence if they want him to step down. Mas, who leads the Centre-Right Catalan Nationalist Coalition (CiU) and the Liberal party CDC, emphasised that CDC has been investigated “until the last millimetre” and the judge has not indicted any party leader or member of the Catalan Executive. He explained that the party’s finance management team and its political leadership have been separated since the late 1990s. The Catalan President insisted he believes in the word given by the party treasurer, who has been indicted by the judge. However, he guaranteed that, if the trial proves that CDC received any illegal money, the party “will return up to the last cent” and will take full responsibility for it. The opposition considered the explanations to be insufficient and demanded resignations if the corruption case is finally proven.

The Catalan Government has reminded it has the exclusive powers to rule local governments in Catalonia, an authority which stems from the Catalan Statute of Autonomy approved by the Spanish Parliament and a binding referendum. Therefore, it does not recognise the Spanish Government’s law proposal on local governments, approved last week in Madrid, and will reject any imposition. The new Catalan law foresees the volunteer merging of municipalities and elimination of 1,034 remunerated positions in the County Councils. It also reshapes the body managing services within the Barcelona Metropolitan Area. Furthermore, it strengthens the control on the creation of new local bodies and the public services offered by municipalities.

The new President of the Spanish Constitutional Court, Francisco Pérez de los Cobos, has turned out to be a member of the People’s Party (PP), which runs the Spanish Government. In addition, the expert in labour law had drafted several reports for the PP on several issues. On top of this, Pérez de los Cobos wrote a book with many sentences against Catalonia and Catalan citizens, amongst other controversial stances. According to the Catalan Government, this person cannot chair an institution that has to act as a referee between the different levels of government in Spain and that has to interpret the Constitution regarding very sensitive issues, such as Catalonia’s self-determination. For this reason, the Catalan Government demanded that Pérez de los Cobos be excluded from all the cases that involve the Catalan Executive.

In March of this year the Catalan Supreme Court (TSJC) cancelled the Catalan Government’s allocation of the publicly-owned Aigües Ter-Llobregat (ATLL) – which supplies water to the 5 million people of Greater Barcelona – to the joint venture led by Acciona and including the Brazilian investment bank BTG Pactual. The Government presented an appeal but the TSJC confirmed on the 19^th July its previous decision. Now, the Catalan Government has decided to take the issue to Spain’s highest court to defend the allocation. The Government is convinced the tender process was done correctly, but the other main contender, Agbar, states the opposite. In addition, a Catalan Government’s internal body overlooking public tenders stated that Acciona’s offer should not have won.

The Spanish National Police has allocated more than half of its recently graduated agents to be sent to Catalonia. Of the 418 that passed the police training this year, 231 are destined to work in Catalonia, a figure which represents 55% of the total. The Director General of the Spanish Police, Ignacio Cosidó, stated how these figures show that the force “has a strong willingness to remain in Catalonia”. He also added that the Spanish Government prioritises security within Catalonia. However, the Catalan Police, called the Mossos d’Esquadra, has the majority of police power in Catalonia, except customs control and the fight against international and organised crime. In the rest of Spain – except the Basque Country – Spanish Police does the majority of the police work.

The President of the Catalan Government, Artur Mas, is expecting an answer from the Spanish Prime Minister, Mariano Rajoy, to the letter sent on Friday which formally asked for a self-determination vote to take place in Catalonia. “I think Rajoy will answer the letter, but we will see when and how he does so”, stated Mas on Monday. The letter was sent in order to formalise in an explicit manner the willingness of the majority of the Catalan people to hold a self-determination referendum to decide on Catalonia’s collective future and its hypothetical independence from Spain. The formal request was part of the parliamentary stability agreement between the governing Centre-Right Catalan Nationalist Coalition (CiU) and the Left-Wing Catalan Independence Party (ERC).

The winner of the 25^th Premi Internacional Catalunya, Gro Harlem Brundtland has explained how receiving the award with Pakistani education activist Malala Yousafzai is “special as both are fighting for women’s rights”. The former Prime Minister of Norway and ex Secretary General of the World Health Organisation also stated how it would be “very strange” if Catalonia were to leave the EU in the event of a hypothetical independence from Spain. Brundtland also encourages Catalonia to invest and establish renewable energy systems as well as gender equality quotas in both politics and business.

By the end of June, there were 873,000 people in Catalonia without work and looking for employment, according to the latest Active Population Survey (EPA). This represents 29,300 fewer individuals than 3 months ago, which is the highest unemployment reduction in the second quarter of the year since 2002. However, employment levels have only increased by 11,800 people, which means that this year Catalonia has experienced the lowest increase in job creation for this period of the year since 1998. The Catalan unemployment rate is now 23.85%, while the Spanish average is 26.6%. In the whole of Spain, the number of people unemployed decreased by 225,200, which means that the total number of unemployed people is now below the psychological landmark of 6 million individuals (5,977,500).

The Catalan Parliament has devoted a two-day plenary session to debate the youth unemployment problem and how it could be reduced. According to the latest Active Population Survey (EPA), the youth unemployment rate in Catalonia reached 52.7%. This means that 1 out of 2 youngsters between 16 and 24 years old who want to work cannot find a job. Around 151,000 youngsters are unemployed in Catalonia; 64% of them worked in the service sector and 17% have never worked. The Catalan President, Artur Mas, asked to manage the proportional share of the European Union’s funds allocated to fight youth unemployment in Spain, since the Catalan Executive holds the competences.

The President of the Spanish Congress, Jesús Posada, has set 1st August at 9am to be the date in which the Spanish Prime Minister will face congress to explain the Bárcenas corruption scandal. It will be a debate similar in which Rajoy will have unlimited time to explain himself while the opposition will have two turns to respond. No votes or motions shall be taken following the questioning. Rajoy has been under pressure from opposition parties to explain the scandal which involved illegal cash payments given to the Prime Minister and senior members of the PP from former party Treasurer Luis Bárcenas. Spanish law stipulates that it is illegal for government ministers to receive an extra salary aside from their government income.

The Spanish Prime Minister has finally declared that he will stand before the Spanish Congress to face questions over the alleged illegal financing of senior members of his People’s Party (PP). During a press conference on Monday, Rajoy announced that in late July or early August he will face questions from parliamentary groups in an attempt to resolve the ongoing Bárcenas scandal. Rajoy has been under pressure from opposition parties to explain the scandal which involved alleged illegal cash payments given to the Prime Minister and senior members of the PP from former party Treasurer Luis Bárcenas. Spanish law stipulates that it is illegal for government ministers to receive an extra salary aside from their government income.

The Spanish minister for Foreign Affairs, José Manuel García Margallo, says comments by Juan Carlos Gafo were “intolerable” and “absolutely inconsistent” with the organisation which aims to promote the Spanish image abroad. The now sacked Deputy Director said on Twitter: “F*** Catalans. They do not deserve anything at all. His words caused outcry in Catalonia, so he later apologized saying he has “nothing against Catalonia or Catalans”. He said he got “mad at hearing the Spanish national anthem booed” during the Barcelona 2013 FINA Championship.

In February, the offices of the private detective company Método 3 in Barcelona were searched by the Spanish Police, who brought to court many documents and computers in order to start a thorough investigation on political espionage in Catalonia. The case is affecting the People’s Party (PP), the Centre-Right Catalan Nationalist Coalition (CiU) and the Catalan Socialist Party (PSC). The judicial investigation is still ongoing, but much of the information – most of the time contradictory – has been leaked in the past few months. The case’s main focus is the recording of a private conversation at a Barcelona restaurant between the leader of the Catalan PP, Alícia Sánchez-Camacho, and the former girlfriend of the oldest son of the CiU’s historical leader, Jordi Pujol. Who is behind the recording is still a mystery, but some voices have pointed towards the PP, the CiU or the PSC. However, the PSC is the first one to have one of its members indicted.