The People’s Party eases the way in parliament for the Catalan budget

Barcelona (ACN).- The Catalan Parliament had a key vote on Wednesday on the Catalan Government’s budget for 2011, which is being debated now because the Catalan elections took place last autumn. The Catalan Government, which is run by the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU), presented a budget proposal which cuts public spending by 10%. All the opposition parties but the Catalan People’s Party (PPC) presented a motion to substitute the budget bill. The Catalan Socialist Party (PSC) –which is the main opposition party-, the Catalan Green Socialist Party (ICV-EUiA), the Left-Wing Catalan Independence Party (ERC), the Anti Catalan Nationalism Party (C’s) and the Radical Catalan Independence Party (SI), presented motions to substitute the budget bill. PSC, ICV-EUiA, C’s and ERC oppose CiU’s proposal because it cuts social spending while it reduces the Inheritance Tax and does not make enough efforts to get new revenue. SI proposed a completely different budget as if Catalonia were an independent state. Today, all those motions were debated and voted. The PPC's abstention facilitated CiU’s simple majority to reject the opposition’s motions. Therefore, the Government’s budget proposal can continue its parliamentary path. In the weeks to come, CiU will carry on negotiations to gather enough support to pass the budget proposal. The People’s Party has already announced it will negotiate with the Government and ultimately back the budget if they can reach some specific agreements. The definitive budget bill should be voted and approved on July 20^th and 21^st.

The People’s Party seems CiU’s only likely support for the 2011 Catalan Government’s budget at this stage. CiU is lacking 6 seats to reach the absolute majority. It therefore needs the support from at least another parliamentary group to pass laws, such as the budget bill. After the municipal elections, CiU and PP are closer. They reached an agreement in Barcelona’s Provincial Council and CiU facilitated PP’s candidate Xavier Garcia Albiol to become Badalona’s mayor, Catalonia’s third most populated city.

None of the other potential allies, the PSC and ERC, seem keen to back the Catalan Government. The PSC and ERC were part of the previous Government. In addition, the PSC is the main opposition party. CiU is asking for PSC support, but the Socialists accuse CiU of wanting a blank cheque. CiU says the PSC wants to sit on the negotiation table with a bunch of pre-conditions. Everybody is already assuming that no “Catalan Big Coalition” will happen. ERC is more likely than the PSC’s but considering ERC’s internal situation and the Catalan Government will reduce the Inheritance Tax, and make the PPC a more likely ally.