The Catalan President advised Mario Draghi against worsening the crisis by reducing the deficit too fast

Barcelona (ACN).- The President of the Catalan Government, Artur Mas, advised the European Central Bank (ECB) against reducing the deficit too fast in the middle of an economic recession, as it would worsen the crisis. As the ECB Governing Council was meeting on Thursday May 3^rd in Barcelona, the Catalan President met on Wednesday evening with ECB’s President, Mario Draghi, the Governor of the Bank of Spain and ECB Governing Council Member, Miguel Angel Fernández Ordóñez, and the Governors of all the other European Central Banks of the Eurozone. Artur Mas took the opportunity to emphasise the Catalan Government’s commitment to austerity measures, and the support his party –the Centre-Right Catalan Nationalist Coalition (CiU)– has given to structural reforms adopted at Spanish level. Mas also explained to the ECB the efforts Catalonia has been making to reduce its own deficit. However, he also asked the ECB Members for some flexibility regarding the public deficit targets, as focusing exclusively on the deficit while many European countries are in an economic recession could worsen the economy. Besides, Mas emphasised that Catalans are “European because of history, identity and will”.

The Catalan President offered a dinner to the ECB Governing Council at the Generalitat Palace, in Barcelona’s Gothic Quarter, which is the seat of the Catalan Government. The President of the European Parliament, Martin Schulz is also attending, as he is visiting Catalonia’s capital coinciding with the ECB Governing Council.

The Catalan Government committed to austerity

Mas held a meeting with Mario Draghi and Miguel Angel Fernández Ordóñez. The Catalan President stressed the Government’s commitment to austerity as a value, and with the need for structural reforms. This is why the Catalan Government supports “almost all the decisions taken by the Spanish Governments [the previous and the current one], even though they might be unpopular”, he said. “We do it out of responsibility, and on many occasions we try to be a model and take the lead within the rest of Spain regarding policies reducing public spending and deficit”, Mas explained.

Reducing the deficit too fast might worsen the recession

However, Mas wanted to send the ECB a warning message, taking into account the economic recession many European countries are into. “There is a risk that might end up being a danger”, he stressed, as in a recession “it is not advisable to reduce the deficit at such a pace that might significantly worsen the economic and social situation”. According to Mas, “reducing the deficit is as important as doing it so that hope is given to the population”. “And this is said by the President of a land that does not live from being subsidised but from its effort”, he concluded. Mas reminded that Catalonia, with 16% of the Spanish population, represents 19% of Spain’s economy, 30% of its external trade, concentrates 22% of Spain’s innovation companies and represents 1% of the world’s scientific production”.

Europe “has made the economy work at the service of welfare and social justice”

Mas recognised that the ECB’s task is “not an easy one”, because both Europe and the Euro are going through a very complex situation. However, he reminded that Europe is one of the few places in the world that “have made the economy work at the service of welfare and social justice, and not the other way around”. “We should know how to preserve this conquest, even in a globalised world. And you can contribute to this in a very significant way”, he stated directly addressing the ECB Governing Council.

The precursor of nowadays central banks was born in Barcelona in the Middle Age

Besides, Mas also reminded that Catalonia is “one of the oldest nations in Europe”, as in the 9^th century it was the only territory within the Iberian Peninsula belonging to Charlemagne’s Empire. “We are in a country, Catalonia, which is not European because of an adhesion treaty or a Constitution. We are European because of history, identity and will”, he underlined. The Catalan President also stated that Catalonia and Barcelona “are not the result or the product of a state, but of a society”, which has progressed with effort, creativity, spirit and modernity. Mas put the Generalitat Palace as an example (the place where the dinner was offered), where building work began 600 years ago, where in Barcelona the ‘Taula de Canvi’ (Exchange Table) was born; an institution that might be considered as the first public bank in Europe, and therefore a precursor of current central banks.