Politics

The International Monetary Fund wants the Spanish Government to “strengthen” the labour market reform, not give up on spending cuts and restructure the financial system. The same day, the Bank of Spain's Governor, Miguel Angel Fernández Ordóñez asked the Spanish Minister for Economy to be “stricter” on the Autonomous Community government’s deficit reduction. The Catalan Minister for Finance said on several occasions that Catalonia would meet the deficit objective for 2011 if the Spanish Government showed some institutional loyalty and paid the money it legally owes to Catalonia.

The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.

The Catalan Parliament will also file a formal complaint regarding the violent protests that took place last Wednesday in Barcelona. Protesters tried to besiege the Parliament and impede the entrance of MPs, some of whom were insulted, threatened, pushed and sprayed. The Spanish Penal Code states that these type of actions are a felony and offenders could face between three and five years in person. Catalan Police had to protect the Parliament and the MPs, with a deployment of 600 police officers. All political parties condemned the violent acts by protesters and most of the opposition said that the deployment of security forces was too small.

The Catalan People’s Party (PPC) abstained and facilitated the rejection of the motions to substitute the budget bill presented by the Catalan Government, run by the Centre-Right Catalan Nationalist Coalition CiU. The motions had been presented by four parliamentary groups for a range of reasons, but mainly because the Government’s budget proposal was cutting too much social spending while it did not make enough efforts to raise revenues.

The Catalan Parliament was under siege by the “indignats” protesters, who have been camping on Catalunya Square for the last month. They tried to impede MPs' access to the park where the Parliament is located. Some MPs arrived on foot and were insulted, pushed or sprayed. Others, including the Catalan President and the Parliament’s President, had to arrive via helicopter or inside police vans. The ‘indignats’ movement condemned “the isolated violent episodes”, but said they have the right to block the Parliament. Today the first voting on the budget was held, which reduces public spending by 10%. Despite the protests, the parliamentary debate took place.

The European Commission also recognised "a different effort" to the rest of Spain’s Autonomous Communities. Brussels said so when on Tuesday it asked Spain “to strictly control” the public “deficit and debt of regional governments”, the day after Moody’s rating agency warned about Catalonia’s expected deficit for 2011. The Spanish Government took note from this particular recommendation but not the other made by Brussels, which included increasing energy taxes and VAT. The Catalan Government criticised Moody’s for “creating alarm” with assessments that do not take into account the whole situation. In addition, it denounced how the Spanish Government has reduced its own deficit by transferring it to the Autonomous Communities.

The President of the Catalan Government detailed his plan to Herman Van Rompuy to balance the Catalan budget and reduce the public deficit. Artur Mas stressed the importance of the Mediterranean Railway Corridor for the European economy and he also outlined the benefits of an effective Union for the Mediterranean, in this moment in particular. Mas was joined by Josep Antoni Duran i Lleida, his electoral ally and leader of the Catalan Christian Democrats. They also met with Competition’s Commissioner, Joaquín Almunia.

The Catalan Parliament approved the modification of the Inheritance Tax, which is practically eliminated among couples, sons, daughters, parents and grandparents. It was an electoral promise of the Centre-Right Catalan Nationalist Coalition (CiU), running the Catalan Government. With this reform 150 million euros will be lost in 2011 and 102 million in 2012. The Left-Wing opposition heavily criticises eliminating revenues while budget cuts are being implemented, in an “unfair decision” that “only benefits the richest”.

After the presentation of the Catalan Government’s budget proposal at the Catalan Parliament, opposition parties criticised its content and the lack of debate on the subject. The Catalan Government needs support from opposition MPs or at least their abstention to approve the budget, which foresees a 2.66% deficit for 2011. The Spanish Vice President for Economy Elena Salgado insists that the mechanisms of deficit control “will be strictly implemented”.

The Catalan Finance Minister presented the Catalan Government’s budget for 2011, which totals 39,354 million euros. For the first time, the budget will see a decrease in comparison to the previous year. Public expenditure is reduced by 10%, brought to 2007 levels. The public deficit is also reduced, but only to 2.66%. The Catalan Minister states that if the Spanish Government wants Catalonia to reach the 1.3% objective, it needs to show institutional loyalty and transfer the money due for 2011 instead of delaying it and calculating smaller amounts.

Catalan and Barcelona Police tried to remove protesters from Barcelona’s Catalunya Square to facilitate the work of cleaners to dismantle the camp. The official reason was to prevent violent action on Saturday night if FC Barcelona wins the Champions League. After the resistance offered by some protesters, riot police charged violently causing more than 120 injured and the indignation of protesters, many civil society organisations and opposition parties. The Catalan Minister for Home Affairs accepted responsibility and stated that police were following orders. Protesters took the square back and set up the camp again. A similar operation took place in Lleida.

The good results at the municipal elections give the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU), running the Government, the support of citizens to carry on with the austerity measures and its plan to reduce public expenditure by 10%. After the Government’s approval, the budget will be discussed at the Catalan Parliament and approved by the end of July. CiU does not want to mix budget negotiations at the Parliament with local agreements after the municipal elections.

'Convergència i Unió' (CiU) increases its vote share across Catalonia and becomes the leading party in number of votes. The large victory backs the Catalan Government’s controversial austerity measures. The Catalan Government and Barcelona City Council will be run by the same party, CiU. The Catalan Socialist Party loses large cities and 22% of its votes across the country. The People’s Party becomes the third party and wins in Badalona with a discourse focused on illegal immigration. ERC loses around a third of its votes but other pro Catalan independence parties gain support. The xenophobic and extreme right PxC remains marginal but increases its base and enters the Barcelona Metropolitan Area. The turnout was 55%, one point higher than in 2007. The null or spoilt vote multiplied its share by three but remains marginal.

The protests of citizens across Spain asking for a new democracy has completely captured the last few days of the electoral campaign. The Central Electoral Board ordered the protests to stop from Friday midnight, as they coincide with the reflection period and election day. The Spanish Supreme Court and the Constitutional Court are expected to give their verdict this Friday. Protesters decided to resist in a peaceful way, while politicians have asked them to abide by the law and the electoral process, but at the same time have requested understanding the protesters. Authorities and police unions have warned about the risks of removing the people from the squares and it is believed that they will not intervene unless violence occurs.

They call themselves “angry people”, they are fed up and they are asking for a “real democracy”, as they believe the political class has failed to represent them. Most of them are in their twenties, but there are people of all ages and backgrounds present. Since Sunday May 15th they are camping in Madrid’s Puerta del Sol Square and in Barcelona’s Catalunya Square. The movement pretends to change the political system in a peaceful way and is being organised via social networks, probably inspired by Cairo’s Tahrir Square. Politicians, in the final days of the political campaign, have asked for an understanding of the protests and have called for calm.