Politics

The Catalan Minister for Business and Employment has stressed that the Government’s objective is to reduce unemployment by half by 2014. The plan foresees ten measures, with a special focus on the long-term unemployed. Some of the measures include incentives to SME companies to hire the long-term unemployed, collaborating with private temporary work agencies, enlarging the network of education classrooms and relocating staff from the Catalan Public Employment Service to provide job search council and other direct services.

The 3.7 billion euros may be increased to 4 billion euros depending on demand. After the first day, the offer of bonds raised “high interest” according to financial sources. Citizens will be allowed to buy a minimum quantity of 1,000 euros and a maximum of 2 million euros. The Government is issuing bonds that expire in one year at an interest rate of 4.75%, and others expiring in two years at an interest rate of 5.25%. The Catalan Finance Minister stated that this bond offer is “safe and attractive”. It is the third emission of retail bonds in the Catalan Government’s history. The current bond emission mainly aims to replace those from the first emission, which expire next November 21st.

The President of the Catalan Government, from the Centre-Right Catalan Nationalist coalition CiU considered the statement “an important step” and stressed that they “are hoping for the terrorist group's total break up and the total abandonment of its weapons”. The Left-Wing Catalan Independence Party, ERC, asked the Spanish Government to quit its “ivory tower”, “as the United Kingdom did”, and “let the Basque and the Catalan peoples decide their future”. However, the Catalan Association of Terrorist Victims has criticised ETA’s announcement and said that it only hopes for ETA’s disappearance, but other individual victims have celebrated the news. ETA has killed more than 800 people, 50 of them in Catalonia.

The Basque terrorist group ETA announced this afternoon, minutes before 19h (CET), the “clear, firm and definitive purpose” to end “its armed activity” by sending a declaration to the Basque newspapers Gara and Berria, and to the BBC. Here we attached ETA’s statement sent to the BBC.

The European Commission has included the Mediterranean Railway Corridor for freight and passengers among the next EU transport priorities. The EU might pay between 10% and 20% of the construction costs if it is finished before 2030. The ports of Barcelona, Tarragona, Valencia, Almería and Algeciras will become true European gateways to North Africa and Asia. In addition, high-speed trains will travel along the Spanish Mediterranean coast to France. Catalan politicians and business people have unanimously celebrated the good news but believe it comes too late and fear the Spanish Government could still prioritise other corridors. In fact, the EC also included other corridors, which pass through Madrid. Therefore Spain’s traditional radial model may still persist.

Andreu Mas-Colell, former Harvard Professor and the current Catalan Finance Minister, travelled to London to meet with financial representatives. The objective is to explain, first-hand, the Catalan Government’s austerity plans and its efforts to reduce the deficit and to foster the economic recovery. Mas-Colell met with City investors, banks and media, such as the ‘Financial Times’.

The Chairman of the EP’s Transport Committee, the British MEP Brian Simpson, has stated that building the Mediterranean Railway Corridor for freight and passengers is “absolutely imperative and crucial” for the European economy. On the contrary, the third corridor going through the Central Pyrenees, linking Zaragoza and Toulouse is “not-viable and not-needed”. “Drilling mountains is very very expensive”, he warned. The Mediterranean Railway Corridor would link Central and Northern Europe with Spain’s Mediterranean ports by international-width tracks. In addition, it would include a high-speed train service for passengers.

The Catalan President, Artur Mas, announced that he along with ministers, deputy ministers, and directors-general would not receive the Christmas bonus this year. The measure affects all the Catalan Government’s higher-ranked staff and is meant to send a message of austerity. 350 people will see their salary reduced, saving 1.8 million euros of public money. It is an answer to doctor and nursing unions, who had asked politicians to reduce their salaries. Last year, higher-ranked officials experienced a 15% salary cut.

According to some MEPs, the international-width high-speed railway corridor for freight and passengers along Spain’s Mediterranean coast that connects ports, industrial centres and tourist resorts would be included in the next priority map of European transport networks. The necessary infrastructural project for the EU economy would link Central and Northern Europe with Spain’s ports that trade directly with North Africa and Asia, enabling trains going non-stop on international-width railway. The EU would pay for 25% of its cost. The Central Corridor passing through Madrid, Zaragoza and the Central Pyrenees would fall from the list, as economic criteria are decisive in times of economic difficulties. However, the definitive list will be released on October 19th.

September has been a bad month for employment over the last number of years, but this past September is the worst in the last 11 years. The Spanish Government has blamed the budget cuts undergone by the Autonomous Communities for the unemployment increase. The Spokesperson for the Catalan Government considers Madrid’s statements as “offensive” and “pitiful”, and he stressed that the Spanish Government had asked them to double their public spending cuts. He also added that the Spanish Government has not paid the money that it owes.

The Debate on the State of the Nation ended at the Catalan Parliament with the approval of several resolutions. After three days of debate, the resolutions were voted on Friday. One of them condemns the way in which the Spanish Constitution amendment was negotiated and passed, as it did not take into account parties that participated in the Constitution drafting and approval, and it also interferes with the financial autonomy of Catalonia. Another motion demands the Catalan Government to present the budget for 2012 before October 10th next.

In addition, he warned about an ongoing re-centralisation process, going against the consensus of 1978, and whose next step “will be the electoral reform”, which “will sentence us [Catalan nationalists] as galley slaves”. The day that King Juan Carlos was ratifying with his signature the amendment to the Spanish Constitution, one of the main law’s six founding fathers criticised the reform. Miquel Roca, who represented the views of the Catalan nationalists in 1978 criticised a reform approved only with the support of the two main parties in Spain, both defending centralist stances.

The Catalan Government has approved the new Law of Budget Stability, which foresees a gradual and significant reduction of the deficit in the following years. The law permanently fixes an allowed deficit limit of 0.14% of Catalonia’s GDP from 2018, two years earlier than the deadline required by the Spanish Constitution’s modification. According to the Catalan Finance Minister, Andreu Mas-Colell, the law demonstrates Catalonia’s “strong commitment to budget stability”. In addition, the law creates a fund to return public debt, which will be filled with any additional revenues or budget surplus.

The Catalan President Artur Mas has asked the European Union “not to forget about a land that feels European and needs deeper and closer ties with Europe” in the ‘FERRMED Trans-European Cluster Conference’ in Brussels. Previously he has met with the Vice President of the European Commission, responsible for Industry and Entrepreneurship, Antonio Tajani. The Mediterranean Railway Corridor would directly link Central and Northern Europe with Spanish ports and subsequently North Africa.

The current Catalan Government, which took office last Christmas, hired an external auditor to better understand the state of the public finances. Deloitte has increased the Government’s deficit for 2010, from 3.86% to 4.2%, in line with the last data known and internally audited. The Catalan Minister for the Economy, Andreu Mas-Colell, explained that “one out of every three euros spent [in 2010] was not covered by tax revenues”. The main opposition party, which formed part of the previous Government and was in charge of finances, stated that their management cannot be made responsible for the deficit increase, as the deficit calculation criteria has changed.