Politics

The Constitutional amendment limiting public deficit in Spain has been only approved with the votes from the PSOE and the PP at the Spanish Parliament. Four parties decided to quit the plenary room at the moment of the voting, whilst the Catalan moderate nationalists and the Basque moderate nationalists stayed but decided not to vote. They complained about the way the Spanish Socialist Party (PSOE) and the People’s Party (PP) have negotiated and agreed on the second constitutional reform without the input of the other parties.

“It means that we are not wanted, we are excluded, we are ignored” stated Artur Mas, President of the Catalan Government and leader of the Centre-Right Catalan Nationalist Coalition (CiU). It was the first time he has spoken on the Constitutional amendment limiting the public deficit that has been agreed on only between the PSOE and the PP. The CiU has protested against reforming the Constitution solely on the basis of the agreement of only two parties. Members of the PP and the PSOE have been trying to convince the CiU to support what both parties had previously agreed, and PM Zapatero (from the PSOE) asked the CiU to show some “moderation”.

The Catalan Government approves a support program that will advise the promotion and development of activities from the Union for the Mediterranean Secretariat, whose headquarters are in Barcelona. It will provide advice on Euro-Mediterranean policy and projects, until the UfM has enough resources of its own.

Meanwhile, the Catalan Government, run by the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU), announces its own law on budget stability. The CiU feels excluded from the reform of the Spanish Constitution to limit public deficit, especially as they had been one of the key actors when negotiating and approving the Constitution in 1978. The CiU’s Spokesperson warned that, since “the Constitutional consensus” had been broken by the PP and the PSOE, “a great clash with unforeseeable and undesired consequences will happen” if nothing changes.

The Catalan Socialist Party (PSC) decides not to break the Socialists’ unity and not to force a call for a binding referendum on the constitutional amendment. In addition, the PSC rejects the request of the Centre-Right Catalan Nationalist Coalition (CiU) to include within the Constitution a limitation not only the public deficit but also a limitation on inter-regional fiscal redistribution. Moreover, the CiU stated that it has been excluded from the Constitution’s modification and therefore the Constitutional consensus is now broken.

Heribert Barrera, who became the first president of the reinstituted Catalan Parliament after Franco, died last Saturday aged 94 years old. He was the oldest leader of Catalan independence movement and a respected figure within the entire political spectrum. The farewell ceremony took place this Monday at the Catalan Parliament.

The governing Spanish Socialist Party (PSOE) and the main opposition party, the People’s Party (PP) agree to amend the Spanish Constitution to limit the deficit from public administrations. Other parties have offered to support the amendment but have not participated in the actual writing of the text. The constitutional amendment will not set a deficit figure, which will be set through a law to be approved before July 2012. The PSOE and the PP have agreed that the deficit should be limited at 0.4%: 0.26% corresponding to the State and 0.14% to the Autonomous Communities. Other parties are insisting on the need for a binding referendum.

Many in Catalonia fear that a constitutional limitation to public deficit and debt may dramatically reduce Catalonia’s already restricted fiscal autonomy, which would not only affect self-governance but also the possibility to pay for investments or public services not guaranteed by the Spanish State. The fear goes beyond Catalan party boundaries regarding the second amendment to the Spanish Constitution, which would be approved through an “urgent procedure”, almost without public and political debate. Catalan senators could force a call for a binding referendum.

The UfM Secretary General, Youssef Amrani, wants “international mobilisation” to support Libya's reconstruction and the democratic process. Amrani stated that the UfM backs Libya's new period.

Main Catalan forces share the need to control public spending and balance public finances but many fear the proposed measure could be used to trim Catalonia’s self-governance. In this line, the Catalan Government’s spokesperson asked Catalan parties to frontally oppose to any measure limiting fiscal autonomy. However, other Catalan politicians are open to discussion but “want to look at the small print”. Furthermore, the Spanish Parliament also approved the fiscal measures announced last week, by which the State will save around 5,000 million euros this year.

A grant allocated to the poorest, which is supposed to be their only income, was not paid regularly on August 1st as the Catalan Government changed the payment method. The official explanation is that the change was taken to avoid fraud and be able to ensure the sustainability of this grant system. From now on, the 37,000 beneficiaries will have to personally go the bank with a pay check that will be sent to them. In mid-August, most of the beneficiaries had already received the money. The opposition has heavily criticised the Government, which has recognised errors but stressed that many people were getting money without meeting the conditions. 500 beneficiaries and social workers protested on Thursday in Barcelona.

Rubalcaba’s proposal to redefine the current Provincial Councils in Spain seems to be on the same wave length as the Catalan Government’s run by the Centre-Right Catalan Nationalists (CiU). The Catalan Vice President, Joana Ortega, states that this level of government needs to be reorganised. The Catalan Socialist Party emphasises that Provincial Council’s powers and funds should go to the municipalities.

The president of the United States called on Monday evening, the Spanish Prime Minister to discuss the world economic situation, focusing on two main themes, the evolution of debt problems in Europe and the United States, and the growth of world economy.

Mas told reporters that he does not enjoy making such cuts but they are necessary to keep Catalonia from bankruptcy

Lex Writer Richard Stovin-Bradford argues in an interview with the CNA that Catalonia “is adopting strong measures” to cut its deficit while some autonomous communities “have not yet reduced the spending” as much.