Politics

Artur Mas, President of the Catalan Government, has reflected on his first year in office. Mas justified the budget cuts his government has made in order to avoid “a collapse” in public services. He also criticised the recent trend of patronising the Autonomous Communities and claiming that they are responsible for Spain’s financial problems. That, he believes, has made them scapegoats. “The Autonomies are a very important part of the State”, “they provide almost all public services to citizens”, he stressed. In addition, Mas insisted that Spain’s debt and deficit is mainly due to the Spanish Government’s overspending over many years and not the fault of the Autonomies or the municipalities.

In a radio interview, Luis de Guindos, said he is supportive of the budget austerity measures put in place by the Catalan Government over the last 12 months. In addition, the new Spanish Minister for the Economy stated that the drug prescription fee proposed by the Catalan Government is Catalonia’s responsibility, contrary to that said by the previous Spanish Government. In addition, the Catalan Health Minister explained that the drug prescription fee would include exceptions “basically” based on personal “economic reasons”.

For the first time since 1979, the Spanish Royal family has published how it spends the public money that it receives every year. In 2011, the household was given €8.4 million. The transparency of the monarchy comes at a time when the king’s son-in-law, Iñaki Urdangarín, and his business partners are the subject of a fraud investigation involving millions of euro of taxpayers’ money

The Catalan executive changes its foreign policy and urges its representatives to focus on the promotion of business and other economic issues abroad

Alejandro Cao, born in Catalonia, is the Chairman of the Korean Friendship Association, part of the hermetic regime’s body promoting North Korea’s image abroad. Cao is one of the few North Korean top officials who travel abroad and talk to the press. The sudden death of Kim Jong-il found this “special representative” of North Korea’s Foreign Affairs Ministry in Catalonia, visiting relatives. He shared his views on the regime’s future leadership with CNA.

The Catalan Government will reduce department expenditure by 3.8%, public sector prices will increase and real estate assets will be sold. In addition, a symbolic tourist tax and a universal fee for each drug prescription will be introduced. The Catalan Finance Minister, Andreu Mas-Colell, insisted that next year’s budget continues with the two-year adjustment plan, which has been designed to reach a 1.3% deficit objective in 2012. Basic welfare services and security and judicial policies are the areas least affected by the reductions. In the next few weeks, parliamentary negotiations will take place to approve the final budget.

In order to foster transparency, almost all the Catalan Members of the European Parliament have asked the European Commission to supervise the Catalan Government's budget, and other “regions of systemic importance”. Catalonia’s GDP is as big as that of Finland and Portugal. MEPs from CiU, ERC, ICV, and the PP believe that this procedure will prove Catalonia’s reliability and rigour, and will subsequently have a positive effect on the international financial markets. The PSC is looking at possibly joining the initiative.

The winner of the Spanish Elections, Mariano Rajoy, outlined his government programme at the parliamentary debate on his approval before being officially appointed Prime Minister. Rajoy, without revealing any details, talked about redefining public powers, reforming public administrations, homogenising welfare policies and ensuring market unity. The Centre-Right Catalan Nationalist Coalition (CiU), the Catalan Socialist Party (PSC), the Catalan Green Socialist and Communist Coalition (ICV-EUiA) and the Left-Wing Catalan Independence Party (ERC) warned Rajoy of not affecting Catalonia’s self-government with his reforms.

The Catalan Socialist Party (PSC) is holding its 12th congress to renew its leadership and discuss its entire political project. After having lost the last elections, the Catalan Government and many town halls throughout Catalonia, the PSC feels detached from the majority of voters with many believing that it has lost its way regards it political project. Its attachment to social-democratic values, its connection with the Catalan municipalities, its defence of Catalan interests in Madrid, and the relationship with the Spanish Socialists are the main issues. Three mayors announced their candidacy to lead the party, which means that a synthesis looks more likely than a full renovation.

The Catalan Minister for Finance, Andreu Mas-Colell stated in a press conference that because of the Spanish Government’s refusal to pay them the promised €759 million, the Catalan Government will be short of cash for the remainder of the year. Mas-Colell explained that Catalan public employees would receive most of their Christmas bonus with a one week delay. In addition, service providers will also be paid later. Visibly angry and arguing that they had not been previously informed about the measures, union representatives decided to leave the negotiation table with the Catalan Government where talks had been taking place about next year’s salaries, working conditions and staff numbers.

Public employees have taken to the streets to put pressure on the Catalan Government during the negotiation of next year’s budget. The Government proposed 19 measures affecting public employees and aimed at saving €625 million in 2012. They include salary reductions, modifications in working conditions and review “of temporary staff”. Negotiations began on November 30th and, despite some temporary suspensions, they are on-going. The Catalan Government wants to close a deal as soon as possible, and unions want to keep negotiating until next year’s budget approval.

The outgoing Spanish Government has refused to pay Catalonia €759 million this year despite being legally obliged to do so and having stated publicly on several occasions it would pay the money. The Spokesperson for the Catalan Government announced Catalonia is risking to miss the deficit objective for 2011 without the funds. Facing this situation and the damage caused by it, the Catalan Government has decided to take the Spanish State to court and explain the issue to European institutions. Mariano Rajoy, Spain’s future Prime Minister, has said that he is not aware of the issue.

The Spanish Government refuses to transfer some of the funds that it is legally obliged to pay Catalonia in 2011. Without this money, the Catalan Government will have difficulties meeting the deficit objective for this year. The Catalan Minister for Finance, Andreu Mas-Colell, considers the stance of the Zapatero Government to be “rude” and ignorant to the needs of Catalonia. Furthermore it forces the finances of Catalonia to be put in the spotlight. Every single Catalan political group, including the Socialists and the People’s Party, have criticised the decision of the soon to be former Spanish Prime Minister, and have expressed their support for Mas-Colell.

The former President of the European Parliament, Josep Borrell, believes that the European Central Bank must buy sovereign debt and that governments need to implement budget cuts at a slower rate in order to avoid a drop in economic growth. Borrell also stressed that “the worst is possible”, and that they must act quickly. However, he added that “the euro will not disappear” but if some countries were left out, “it would be a problem for everybody” as “it would cause a big mess”.

Both governments are currently defining their strategies and building their respective cases in preparation for a discussion on the issue in the coming months. The Spokesperson for the Catalan Government, Francesc Homs, has sent a clear message to the next Spanish Prime Minister: Catalonia will only accept a negotiation on a new fiscal model, which would reduce the financial transfers to Spain’s poorer regions. If the Spanish Government refuses to discuss about it, Catalonia will organise a citizen vote on it. Over the past few days, the People’s Party has hinted that the Catalan Government’s main claim is not a matter for discussion.