Politics

The Spanish Minister for the Economy, Luís de Guindos, announced in Barcelona the future creation of the so-called ‘hispanobonds’, common bonds issued by the Autonomous Communities and backed by the Spanish Treasury. The objective is to reduce high interests rates, and thus the financial costs that the Autonomous Communities have to pay when they turn towards financial markets to get liquidity. The Catalan Finance Minister proposed the original idea several few weeks ago.

‘Convergència Democràtica de Catalunya’ (CDC), the Liberal force within the two-party Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU), held its party congress over the weekend. For the first time in its history, CDC has claimed for Catalonia to have its “own state” in order “to avoid being erased off the map of cultures, languages, and world nations” as “Spain threatens Catalonia” and is no longer a “project that can be shared”. The current President of the Catalan Government and until last weekend the CDC Secretary General, Artur Mas, has now become the party Chairman. Oriol Pujol, son of the former Catalan president Jordi Pujol and Mas' close collaborator, has been elected the new Secretary General with 97.8% of the votes.

The Catalan Government has been issuing retail bonds over the last two years as a regular way of financing its liquidity. All the previous issues have been a success, with high demand. Between April 2nd and April 24th Catalan citizens will be able to buy one year and two year treasury bonds of the Catalan Government’s debt, with an interest rate of 4.5% and 5% respectively.

The President of the Catalan Government, Artur Mas, met with the President of the European Parliament, Martin Schulz, in Brussels. Mas told the press that Schulz had stated he would “work hard” to enable the use of Catalan at plenary sessions. However, Schulz did not confirm neither “any date” nor can he “guarantee that he would achieve it, as it does not only depend on him”, explained Mas.

The Catalan Government has drafted a plan regarding public employees for the 2012-2014 period. The aim is to reduce public spending in order to meet the deficit targets by reorganising civil servants, including their working conditions. The plan foresees the possibility of a reduction in salaries and working hours, as well as making their working conditions, tasks, and location more flexible. 6,800 temporary workers will have their hours reduced by 15% from April 1st. Unions have criticised the plan. However, the Catalan Vice President has asked unions to avoid exaggerating the issue and creating problems.

The Catalan Ministry of Finance has confirmed the figures released on Thursday by the party running Catalonia’s Government. The drug prescription fee would add €180 million to the budget, and will also save money due to its dissuasive impact. The symbolic tourist tax, which will be implemented from November, would also bring in €60 million. The remaining €60 million will come from other taxes and public fees.

In 2009, Catalonia financed € 16.41 billion of services and investments in the rest of Spain, which represents 8.4% of Catalonia’s GDP. According to the Catalan Finance Minister, Andreu Mas-Colell, out of every euro paid by Catalan citizens with their taxes, 43 cent is invested outside of Catalonia. The Catalan Government released the latest data regarding the fiscal relationship between Catalonia and Spain, corresponding to the 2006-2009 period, known as “the fiscal balances”. Mas-Colell underlined the “fiscal deficit” Catalonia suffers from, which is “unsustainable” and harms Catalan citizens and the country’s economy.

The Catalan Government had already approved a 3% reduction of public salaries during the current year, which will now be increased to 5%. However, the President of the Catalan Government, Artur Mas, explained that the measure would be cancelled if the Spanish Government approved a similar reduction, in order not to harm public employees with two salary reductions. The People’s Party supports Mas but the Left-Wing opposition parties have criticised the measure and have said that there are other ways to reduce the deficit. Mas demanded that the Spanish Government include the funds it legally owes Catalonia in its budget for 2012 which would avoid further cutbacks.

“Absurd, useless, dreadful, and inopportune” is what Spain’s Finance Minister thinks about the Catalan Government’s proposal to internally split the 5.8% deficit target for 2012 more proportionally. The Catalan Government has asked for the Autonomous Communities’ deficit to increase from 1.5% to 1.7% of Spain’s GDP, and the deficit generated by the services directly managed by the Spanish Government to fall from 4% to 3.8%. The Spanish Government believes that it has already undertaken severe austerity measures and that now it is the turn of the Autonomies.

The enlargement of Barcelona Port, where Hutchison’s new container terminal will be located, was supposed to be linked by International-width standard railway to Central Europe and be better connected by road. However, the Spanish Minister for Transport and Public Works, Ana Pastor, announced that work cannot start this year; neither can she guarantee the provisional solution will be in place in June, when the new container terminal was supposed to start operating. Since the Spanish Government has not started the work, the technical studies have expired. “Hopefully they will be redone by the end of the year”, said Pastor.

There has been a unanimous call in Catalonia for greater flexibility of the deficit objectives applied to the Autonomous Communities for the current year. Every political party in Catalonia, including the People’s Party (PP), has asked the Spanish Government to provide more flexibility to the Autonomies, which manage 40% of Spain’s public spending and run basic Welfare State services. The Spanish Government has set a new deficit target of 5.8% of Spain’s GDP for 2012; internally, the Central Government allowed itself a deficit of 4% and ordered the Autonomies to commit to a deficit of 1.5%. Some Catalan parties have said that the Spanish Government has double standards.

The Catalan Government considers the Spanish Government to be “disloyal” for unilaterally setting the new deficit objectives and for not allowing the same degree of flexibility to the autonomous communities, who manage all basic services. The Autonomies’ new deficit target has been set at 1.5% while that of the Spanish Government is set at 4%. Mariano Rajoy has announced that Spain will have a total public deficit of 5.8% of its GDP, and not the 4.4% previously agreed with the rest of the European Union Member States. Rajoy has argued that, with a recession coming, the situation has changed and the stability pact foresees changing the targets.

Unemployment has reached a new historical record in Catalonia, with 641,948 people being signed on. These figures mean that 8,738 more people were out of work in February compared to January. In Spain as a whole unemployment increased by 112,269 people in February. This is 2.44% more than the previous month and puts the total number of people registered as unemployed on February 29th at 4,712,098.

ACN interviewed Neelie Kroes, Vice President of the European Commission and Commissioner for Digital Agenda. Her “dream” would be to reach a European Union single market for mobile phone and internet services. “It is not normal” that when crossing artificial borders, “the borders from the past, you can see it in your bills” she said. Kroes affirmed that by 2015, mobile phone roaming fees from one EU country to another will have ceased. The EU Commissioner was attending the Mobile World Congress, which takes place in Barcelona every year. Kroes praised Barcelona’s good job at organising the MWC. And she stated that the Catalan capital “needs to find its own model”, although “Silicon Valley is a very good example”.

Residents in Catalonia will be able to buy treasury bonds from the Catalan Government in April for the fourth time since 2010. The money will be used for interest repayments, in May, of a former bonds auction. The exact interest rate or the amounts to be raised are still unknown but the Catalan Government’s Deputy Finance Minister has said they hope to get “as much as possible”.