Politics

The Catalan Government put 4 buildings up for auction this Friday, following a plan to rationalise the spaces it uses, reduce spending and increase revenue in order to reduce public deficit. The headquarters of the Catalan Finance Ministry, located in a 8,000 square metre Art-Nouveau building in Barcelona’s Rambla Catalunya, has been bought by an Italian pharmaceutical company through FINAF 92 for €23.2 million. The other building, with a surface of 7,200 square metres, was used by the Catalan Police and is located in front of Barcelona’s Ciutadella Park. It has been bought by the German hotel company MO Düsseldorf Immermannstrasse GmbH & CO. KG for €14.1 million. On Thursday, the Catalan Government announced a plan to reduce its office space by 45% in the coming year by concentrating services. The plan includes selling the most attractive buildings.

The Catalan Finance Minister presented on Thursday a ‘Space Rationalisation and Optimisation Plan’ that foresees to partially leave Barcelona’s city centre and set up offices in cheaper areas. Nonetheless, the measure does not include citizen information and care centres such as schools and community health centres. Furthermore, the initiative also plans to reduce the global office space by using previously-empty floors and concentrating services without laying off staff. The objective is to pass from holding 377,000 square metres to fully occupying 207,000 square metres, a 45% reduction. By doing so, the Catalan Government expects to reduce rents by a 20% average, to cut off indirect costs by 50% and to decrease energy spending by 30%. Furthermore, it will sell the most appealing buildings.

The Catalan Executive considers the Spanish Government’s decision not to pay them the money corresponding to the revenue from the tax on bank deposits in 2013 “very bad news”. On the 18^th December 2012, the Catalan Executive approved a tax on banks’ global deposits (not on personal deposits) with a general rate of 0.5% but with many reductions. Such a tax already existed in Andalusia, Extremadura and the Canaries. Nine days later, the Spanish Government approved its own tax, but at a 0% rate, therefore not collecting any money but cancelling de facto the Autonomous Communities’ tax. When this happens, the Spanish Executive is legally obliged to compensate the regional government, transferring the equivalent money. Madrid did so with the others, but not with Catalonia. Such a tax would have generated €800 million in revenue in 2013.

The Spanish Minister for Foreign Affairs, José Manuel García-Margallo, has stated that the Spanish Government's position regarding the independence of Scotland and its inclusion in the EU will depend on the British Government. The “crucial” point will be whether London considers the process to be legal or not. This statement was made after a Catalan MP accused the Spanish Government of being “allergic to ballot boxes”. Indeed, the Spanish Prime Minister had expressed quite a different opinion on the subject, in November. He had stated that if Scotland and Catalonia became independent, they would be excluded from the EU, and would have to re-apply for membership, also suggesting a possible veto from Madrid.

The civil society organisation Súmate, bringing together Spanish-speaking Catalans who support independence from Spain, presented its local branch in Mataró, a coastal city in Greater Barcelona. On Tuesday evening, half an hour after the event’s kick off, a group of about six Fascists carrying Spanish flags interrupted the presentation and tried to stop it. They shouted insults against participants and carried banners against the association. “You are a submarine” of pro-independence parties and “You are sold to the ‘nazionalist’ tyranny” were some of the slogans. Ironically, these Fascists called the attendees of a democratic debate on Catalan nationalism ‘Nazis’. Spanish nationalism has compared Catalonia’s claims to Nazism on several occasions, while Madrid’s establishment and intellectuals have barely protested. 

Andreu Mas-Colell, Catalan Finance Minister, considered the People’s Party (PP) to be “obstructionist” for blocking the approval of the Catalan Government’s budget for 2014, which was initially scheduled for this week. On Tuesday evening the PP – which runs the Spanish Government – confirmed it was freezing the implementation of the €29.31 billion budget because it included €5 million (0.0176% of the total spending) to fund “electoral processes and citizen consultations”. Mas-Colell warned that by delaying the budget’s implementation, the Catalan Government will lose revenue coming from new taxes and therefore it will have more difficulties meeting the deficit targets for 2014. All the parties in the Catalan Parliament criticised the PP’s initiative except the anti-Catalan nationalism Ciutadans (C’s), which backed the action.

Juan Rosell, the current Chairman of Spain’s main association of employers (CEOE), and who used to chair the main Catalan employers association, stated that Catalan businesspeople are shifting towards pro-self-determination stands. Rosell, who is openly against Catalonia’s independence, stated that “business people are not aliens” and “if society has changed its views in the last few years, so have businesspeople”. The top representative of Spanish business-owners stated that the current moment is “extremely serious”. Rosell demanded to “bridge the gap, put all the economic data on the table and analyse the pros and cons for one side and the other one” regarding Catalonia’s independence from Spain. Rosell asserted that companies have not left Catalonia due to the self-determination process.

On Monday the People’s Party (PP) announced they were considering freezing the 2014 Catalan Government’s budget of €29.31 billion. The reason is that they include €5 million (0.017% of the total spending) to fund “electoral processes and citizen consultations”, which they fear could fund a self-determination vote. The Catalan Government has the power to organise a consultation process, as well as to modify small items once the budget is approved. The PP was waiting for the Spanish Finance Minister’s green light, since blocking the budget’s approval could have consequences on the objective to reduce public deficit and on meeting the targets imposed by the EU. Cristóbal Montoro argued that, since the blocking would “only last some 30 days”, there is no such danger.

The Spanish Prime Minister replied on Tuesday to the President of the Catalan Government’s proposal to discuss in a private meeting the question wording, date, and procedure of Catalonia’s self-determination vote. The Financial Times had also urged the Spanish Government to negotiate and make an offer to Catalans, while adding that “the ingredients” for a solution can be found in Catalonia’s question. While Mariano Rajoy answered he was open to meet with Artur Mas, he added he has nothing to negotiate on and nothing new to say. “The [Spanish] Government will not make any concession” regarding Catalonia’s self-determination. In addition, Rajoy insisted the vote “will not take place”. Furthermore, he added that Catalonia will not have a special funding scheme.

The President of the Catalan Government, Artur Mas, stated that he wants to meet with the Spanish Prime Minister, Mariano Rajoy, in order to convince him “to allow or tolerate” Catalonia’s self-determination vote. In the yearly live interview at the Catalan Public Television Broadcaster (TV3), Mas challenged Rajoy to make “an attractive offer” to the Catalan people, instead of “saying ‘no’ to everything”. Mas proposed that Catalan citizens vote on the Spanish authorities’ offer and on the independence option. Furthermore, the Catalan President insisted he is willing to change the question wording and dateof the self-determination vote if the Spanish Government agrees on a formulation similar to the Scottish referendum.

The People’s Party (PP) – which runs the Spanish Government – has announced it is looking at the possibility of freezing the approval of the Catalan Executive’s own budget. They are considering blocking the €29.31 billion budget because it will allocate €5 million (0.017% of the total spending) to a “citizen consultation”. The approval of such a budget is essential to meet the 1% deficit target for 2014. However, the PP fears this money could be used to organise the self-determination vote in 2014. The PP’s leader in Catalonia, Alícia Sánchez-Camacho, has announced she was talking with the Spanish Finance Minister, Cristóbal Montoro, on blocking the budget’s approval. The CiU, running the Catalan Government, has stated it is “a mistake”.

The People’s Party (PP) has answered the Financial Times that “Spanish unity” is “not negotiable” while the main Catalan nationalist parties have insisted they are ready to discuss the self-determination vote’s question, date and procedure. The influential British newspaper has published this Monday an editorial asking for “a negotiated solution” to Catalonia’s independence claims, while stating that the “ingredients for the solution” can be found in the self-determination vote question proposed by Catalan parties. The PP’s Secretary General, María Dolores de Cospedal, replied that “Spaniards’ right to decide” their sovereignty and “Catalans’ rights, as Spaniards, are not negotiable”.

Following the announcement of a self-determination vote question and date, the Financial Times urges the Spanish establishment to negotiate. The prestigious and influential newspaper stated that the Catalan claims for independence are “a political problem that requires a negotiated solution”. In this Monday printed edition’s editorial, the FT demanded more “federalism within Spain’s crying need for institutional renewal”, convinced that in the two-part self-determination question proposed by Catalan parties “lie the ingredients for a solution”. “It is not just the Catalans but Spain’s leading parties, Mr Rajoy’s PP and the Socialists, that need to rise to the occasion” urged the Financial Times, while also acknowledging that Spain has failed to build “a plurinational home comfortable enough for its culturally distinct peoples”.

The Catalan Parliament will formally ask the Spanish Parliament to transfer the powers to organise referendums to the Catalan Government, following Article 150.2 of the Spanish Constitution on devolution. This procedure is similar to the one used for Scotland’s referendum, when Westminster Parliament transferred such powers to Edinburgh. On Friday, the 4 parliamentary groups that reached an agreement on an exact question wording and date for Catalonia’s self-determination vote have drafted a bill at the Catalan Parliament to start this petition’s process. Since they hold 64.5% of the seats, the bill should be approved in the coming weeks. In addition, after its weekly Cabinet Meeting, the Spanish Government insisted once again it “will not negotiate”. However, the Spanish Constitution has already been changed and the constitutional consensus from 1978 is broken.

The referendum in Catalonia was on everyone’s mind at this Friday’s European Commission press conference in Brussels. 20 minutes of the conference were devoted entirely to the Catalan issue. The EC Spokesperson Pia Ahrenkilde confirmed that Catalonia’s self-determination vote remained “an internal matter for Spain”. Ahrenkilde did not wish to stray away from the official EU stand on the issue, despite the persistence of Catalan, Spanish and foreign journalists. Viviane Reding, the European Commissioner for Justice, Fundamental Rights and Citizenship, also addressed the Catalan referendum issue this Friday. She explained that even though “it is true […] that the Spanish Constitution does not allow one region to break out”, she “hoped common sense imposes itself in Spain, in order to solve that problem”.