Politics

The Catalan Government increased the amount initially requested from the Spanish Government Liquidity Fund for the Autonomous Communities (FLA) adding €410 more million in order to include payments to service providers and local councils. The Spanish Government and the Catalan Executive have included more types of payments eligible for receiving funds from the FLA. At the end of August the Catalan Government requested €5.02 billion to pay for debt maturities and some ordinary payments. At the same time, the Spanish Government does not respect investment agreements in Catalonia and ensures that Catalan citizens suffer from a permanent fiscal deficit calculated to be some 8.5% of the GDP (around €17 billion).

An official study issued by the Catalan Finance Ministry shows that Catalan citizens have given €24.77 billion more to the Spanish pension and unemployment funds than they have received back from it. The study takes into account the contributions of Catalan citizens and companies between 1995 and 2010. Without the Catalan contributions, the Spanish Social Security system would have had a €86.33 billion deficit in the same period. The Catalan contribution to the Social Security system was negative in 1995-1996 and 2009-2010, while between 1997 and 2008 it showed a budget surplus. Without Catalonia, Spain’s Social Security would have only had a budget surplus between 2003 and 2007.

A poll taken by the Catalan Survey Institute points out that only 19.9% of Catalans would be against organising a referendum asking if Catalonia should be a new independent European state. 6% would be undecided. The poll also reflects electoral preferences in the next Catalan elections, scheduled on 25th November. 26.3% of citizens would vote for the ruling Centre-Right Catalan Nationalist Coalition (CiU), which would clearly win the elections. However, those undecided represent 34.6% of the people interviewed. The votes for the main opposition party in Catalonia, the Catalan Socialist Party (PSC), would plummet to only 3.1%. The parties clearly supporting the self-determination (CiU, ERC and ICV-EUiA) would become Catalonia’s first, second and third parties.

The Catalan Government’s Spokesperson, Francesc Homs, ruled out the Spanish Executive deciding to delay the payment as an answer to Catalonia’s self-determination process, as it would be “malfeasance”. However, he was angry about the €24 million fine the Spanish Government has issued against the Catalan Executive for delaying Social Security payments. Homs considered this delay to be a consequence of not receiving the €568 million on time and announced an appeal to the Constitutional Court. The Catalan Government had requested €568 million weeks ago from the Spanish Government’s Liquidity Fund for the Autonomous Communities (FLA) to face some of September’s payments. However the amount did not arrive on time and payments to private healthcare, education and social centres receiving public funds were delayed.

The Spanish Foreign Affairs Minister, José Manuel García-Margallo, states that the claim for Catalonia’s independence during the last FC Barcelona vs Real Madrid Clásico football game “damages Spain’s brand”. On the contrary, the Catalan President, Artur Mas, praised the demonstration for its peaceful and democratic nature, and for “projecting our identity to the world”. Furthermore, the Spokesperson for the Catalan Government, Francesc Homs, considered García-Margallo’s statements to be “undemocratic” for not accepting “the free and democratic expression of the people at Camp Nou”. Thousands of Catalan independence flags were shown at the match – many more than in any other game ever. Furthermore, on several occasions, a large part of the stadium shouted pro-independence chants.

The Spanish Government states that the money will “start to arrive” next Tuesday. Over the past few weeks, the Catalan Finance Minister has warned about the urgency of receiving the requested €560 million from the Liquidity Fund for the Autonomous Communities (FLA) in order to face all September’s payments. However, the Spanish Government has sent €400 million to pay debt maturities but has not sent the remaining €560 million to pay private health, education and social centres that receive regular funds from the Catalan Executive. All direct salaries have been paid, but not other payments. In August, the Catalan Government requested €5.02 billion from the FLA for the entire year 2012 in order to face debt maturities and ordinary payments, since access to international markets is closed to the Autonomous Communities.

The ALDE and the Greens/EFA consider the statements made by Alejo Vidal-Quadras, Vice-President of the European Parliament and member of the People’s Party (PP), to be “a scandal”. Last week, three Catalan MEPs asked the EP President, Martin Schulz, either to push Vidal-Quadras to apologise or to adopt disciplinary measures against him. Schulz appealed to freedom of expression and said that Catalan voters should judge Vidal-Quadras, elected from a closed party list in a single Spanish constituency. Guy Verhofstadt (ALDE) and Daniel Cohn-Bendit (Greens/EFA) reject Schulz’s cold answer and ask for “a formal debate” on the issue. Now, Vidal-Quadras says he was being “ironical”.

As in the past, Catalonia will not receive the investment percentage it is legally entitled to by the current legislation. Instead of getting 19% of the foreseen investment in infrastructures made throughout Spain, in the Spanish Government’s budget for 2013 Catalonia will only receive 11.9%. Furthermore, essential infrastructures for Catalonia’s economy and Spain’s and Europe’s competitiveness are under-budgeted while the Spanish Government finds the money to build non-priority infrastructures, such as high-speed railways in Galicia. On top of this, only 35% of the public work initially foreseen in Catalonia by the Spanish budget for 2011 was executed, while in Madrid the work executed came to 111%. Besides, the Spanish Government has reduced its funds to Catalan cultural centres and festivals by 70% over two years.

Catalonia and the Autonomous Communities run by the Socialist Party (PSOE) were asking to make the Spanish Government’s deficit targets stricter and to proportionally relax those of the Autonomies. The Spanish Prime Minister Rajoy and the Autonomies run by the PP have opposed this redistribution, which would have transferred part of the flexibility allowed by Brussels to the Autonomies. In fact, when Brussels relaxed Spain’s deficit targets for 2012 and 2013, the Spanish Government did not share this flexibility with the Autonomies, which are responsible for almost 40% of the public spending and the managing of the Welfare State services. On the contrary, it made the Autonomies’ deficit targets stricter for 2013.

The President of the Catalan Government, Artur Mas, signed the dissolution of the Catalan Parliament calling for early elections on Monday. He stated that Catalans have “to vote without fear”, referring to Spain’s threats to veto Catalonia’s access to the EU or even with a military intervention. Mas sent a warning to Spain: “act as a mature and sensible state” and “watch out” as the world is looking. Furthermore, Mas guaranteed that Catalonia’s self-determination will be “a totally democratic and peaceful process”. Besides, European Commission’s Vice President Reding stated that Catalonia’s independence from Spain does not mean its exclusion from the EU. “International legislation does not say” that Catalonia would be excluded, she said in an interview with a newspaper from Seville.

Members of the European Parliament from Catalan parties have asked the European Commission “if it would suspend Spain’s rights as a Member State of the European Council in the case that force was used against the decisions of the Catalan Parliament”. They have also asked the President of the European Parliament (EP) “to adopt measures if Vidal-Quadras does not publicly apologise”. The Vice-President of the EP, the Catalan Alejo Vidal-Quadras, famous for his Spanish nationalist stance, said yesterday that the Spanish Government should “suspend Catalonia’s autonomy” and “send a general to lead the Guardia Civil” in order to take control. In the past few days, Spanish nationalists and retired army members have threatened a military intervention if Catalonia insists in its self-determination process.

15% of the MPs oppose the decision, all members of Spanish nationalist parties. The Catalan Socialist Party (PSC) abstains, although one of its veteran MPs backs the citizen consultation. This was the last vote of the Catalan Parliament this term, as early elections have been called, on 25th November, which may turn into a plebiscite on the right to self-determination. The Spanish Government has stated it would immediately block such citizen vote by bringing it to the Constitutional Court, since it has to authorise any referendum in Spain. Furthermore, the day before it stated it will “calmly and firmly” oppose Catalonia’s independence process.

In the Catalan Parliament’s main annual debate, the parties assessed the current situation and the Catalan President’s speech from yesterday. The parties that openly support Catalonia’s independence backed the Catalan President and leader of the Centre-Right Catalan Nationalist Coalition (CiU) but asked to rush proceedings. Those supporting the right to self-determination but not necessarily independence and those directly opposing independence criticised CiU’s policies for fighting the crisis and its focus on the process to create a state. The President of the Catalan Government, Artur Mas, offered a detailed reply to each intervention. However, he also made an announcement: if he is re-elected President, he will organise a referendum on self-rule, even if the Spanish Government bans it.

“In exceptional times, exceptional decisions are needed”, stated the Catalan President, Artur Mas. After the 1.5 million strong independence demonstration on September 11th, the Spanish PM’s refusal to negotiate a fiscal agreement for Catalonia, and days of speculation, Mas called for elections. He announced the decision in the Catalan Parliament’s main annual debate, in which he stated that budget cuts will continue, although “austerity cannot be the only value”. He also accused the Spanish Government of being “disloyal” and imposing stricter deficit targets on the Autonomous Communities. Catalan nationalist parties are celebrating the call for elections for giving the people a say, while the rest accuse Mas of putting his party’s interest first by deviating attention away from the dramatic economic situation.