budget

Photographer Colita has rejected the National Photography Prize awarded by the Spanish Ministry of Culture because of "the pitiful, shameful and painful" situation of the cultural sector in Spain. Colita, who was one of the main photographers portraying Barcelona's bohemian life of the 1960s, 1970s and 1980s, did so after another Catalan artist, the world-famous musician Jordi Savall, did the same last week for similar reasons. In both cases, the two artists highlighted that their reasons for rejecting the award were linked to the Spanish Government's cultural policies and had nothing to do with its blocking attitude towards Catalonia's self-determination process. Colita ironically stated that she "does not know where [the Spanish Ministry of Culture] is located, neither if it exists".

The internationally-recognised Early Music expert, Catalan Jordi Savall, rejected on Thursday Spain’s National Music Prize, which is awarded by the Spanish Government each year. Savall has not accepted the Prize, which was announced on Wednesday and comes with €30,000, because he wants to show his rejection of the Spanish Government’s cultural policies, particularly that towards musicians. Savall is probably the world’s top interpreter of viola da gamba and the main expert in Early and Renaissance music. In 2012 he received the Leonie Sonning Music Foundation Prize, considered to be the ‘Nobel Prize of Music’. In a letter addressed to the Spanish Culture Minister, José Ignacio Wert, Savall blames the Spanish Government for “the dramatic lack of interest and the great incompetence in defending and promoting arts and its creators”. Furthermore he “deplores the Spanish Government’s downplaying policy towards the vast majority of musicians”. Besides, Savall has been publicly advocating for Catalonia’s right to self-determination in the last few months.

While the alternative consultation vote on independence scheduled on the 9^th of November approaches, the Catalan Government has additional priorities on its plate, starting with the approval of its budget for 2015. However, right now the governing centre-right pro-Catalan State coalition CiU does not have enough parliamentary support to approve it. Its parliamentary ally, the left-wing independence party ERC, is reluctant to back the new budget after the Catalan Government cancelled the original consultation vote. The ERC wants to start preparing the first budget of an independent state and on Tuesday it offered to extend the 2014 budget. However, the Catalan President, Artur Mas, announced on Wednesday he will bring the budget proposal to the Parliament anyway. The Catalan Socialist Party (PSC) offered itself as an ally, but Mas asked them to back the alternative consultation vote. The PSC replied that if the question is changed, "we can talk about everything".

The Catalan Government is currently preparing its budget for the next year. However, it is uncertain whether a new budget will be approved or the current one will have to be extended. The Government's parliamentary supports are uncertain because of self-determination and the prospect of early elections on the horizon of to be transformed into a plebiscite on independence. The governing centre-right pro-Catalan State coalition CiU does not have a majority in the Parliament. Its ally over the last two years, the left-wing Catalan independence party ERC, is reluctant to reach a deal because the original self-determination consultation vote was cancelled by the Government. Meanwhile, CiU's anti-independence sectors are trying to reach a deal with the Catalan Socialist Party (PSC) and the Spanish Government is trying to promote an anti-independence alliance between these last two.

Pimec and Foment, Catalonia’s largest employers’ associations, have expressed outrage at the Spanish Government’s budget proposal for 2015 and its planned investment in Catalonia. Both Foment, which groups the largest employers, and Pimec, who represents small and medium-sized enterprises, have criticised that the Spanish Government has allocated to Catalonia only 9.5% of Spain’s total investment, despite it contributing 19% of the country's GDP and having 16% of its population. Spokespersons for both organisations have said the shockingly low budget is at odds with Catalonia’s high productivity and represents "a missed opportunity", both for economic growth and political dialogue, considering the independence debate. According to Ramon Adell, from Foment, Catalonia "as the engine of recovery, deserves a greater investment in infrastructure."

In 2015, Catalonia will receive the lowest investment from the Spanish Government in the last 17 years, in relative terms. The Executive chaired by Mariano Rajoy will only spend 9.5% of the territorial investments in Catalonia, despite the fact that the Autonomous Community accounts for 19% of Spain's GDP and 16% of the country's population. The percentage is even lower than last year's, when Rajoy allocated 9.6% of the territorial investments to Catalonia, which leads Spain's economy. In the current political climate, when the relation between Catalonia and Spain is seriously questioned by a majority of Catalans, such figures are far from supporting the "better together" way.

Andreu Mas-Colell, the Catalan Government's Minister for Finance, emphasised that he cannot implement further budget cuts without "severely deteriorating" basic public services. After Catalonia's ministerial spending having dropped by an average of 20.3% with continuous budget cuts since 2010, public spending reduction has reached its "limit", argued Mas-Colell. The Catalan Government has exclusive control over public healthcare, education and social policies, while most of its revenue depends on transfers from the the Spanish Executive, which collects the taxes paid by Catalan citizens. Once again, Mas-Colell accused the Spanish Government of "strangling" Catalonia's finances by recentralising power. He announced he will not carry out an additional €3.3 billion budget reduction in 2015 and asked Madrid to honour pending debts, modify the too-strict deficit targets and review Catalonia's funding scheme.

The left-wing independence party ERC asked the Catalan President to join the Government "in order to protect the [self-determination] consultation vote" scheduled on the 9^th of November. The Catalan President, Artur Mas, stated that they will talk about it in the coming days to strengthen the unity around November's vote. In addition, the Catalan Socialist party (PSC) also asked Mas to talk to them if the Constitutional Court ultimately bans the consultation vote. The People's Party (PP), which runs the Spanish Government, accused Mas of promoting "a soft dictatorship" in Catalonia. The green-socialist and post-communist coalition ICV stated they want a consultation vote with "credibility". The Spanish nationalist and populist C's said that Mas' time is finished and asked for early elections. Finally, the alternative left and radical independence party CUP advocated ignoring Spain's institutions and voting on the 9^th of November by any means.

The President of the Catalan Government, Artur Mas, stated that his "full commitment" is to make sure that Catalans can vote on the 9^th of November self-determination consultation "with full democratic guarantees". In his opening speech at the Catalan Parliament’s main annual debate, Mas emphasised that his will is to make use of his entire term in office, which ends in November 2016, but only "if it is possible". He hinted that early elections could be called if November's vote could not be carried out with "enough democratic guarantees". In addition, Mas stressed the Government's "unequivocal commitment" to eradicate corruption. He also underlined that the Catalan economy is starting to recover from the economic crisis, leading Spain's recovery. However, he warned of the weak situation of public finances and of Catalonia's self-government because of Madrid's recentralisation and unilateral actions.

In 2015 the employees of the Catalan Government and related institutions and public companies will receive their full salary once again after having suffered a 7.5% reduction over the last 3 years. The Spokesperson for the Catalan Government and Minister for the Presidency, Francesc Homs, announced the measure on Tuesday, after the weekly Cabinet meeting. Furthermore, the Executive will also stop the 15% reduction of working hours and salary of temporary workers in the public sector. Those austerity measures were approved in the 2012 budget as a drastic way to cut public spending in order to reduce the public deficit. The Spanish Government has been unilaterally imposing strict deficit targets on the Catalan Executive while it maintained an unfair inter-territorial fiscal scheme with Catalonia and reduced its resources. In fact, the Spanish Government and most of the other Autonomous Communities did not reduce public salaries in the worst years of economic crisis, while the Catalan Government was the first one to launch the ambitious austerity plan.

An independent Catalonia would be totally viable, according to a report conducted by the research institute from the bank, Credit Suisse. In addition it would improve its ranking on the United Nation's Human Development Index (HDI) and reach the 20^th position while Spain would drop by three places and reach the 26^th position. The report claims that small countries tend to have a higher standard of living due to a number of factors, such as more efficient services, a higher chance of benefitting from globalisation and a more homogenous population. It uses these findings to predict the HDI of territories seeking independence, such as Catalonia, Scotland, Flanders and Quebec.

On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, admitted that Catalonia will not be able to meet the strict 1% deficit target imposed by the Spanish Government for 2014. In fact, the Catalan Executive had previously warned on several occasions that this deficit target was not realistic, despite the great austerity efforts undertaken over the past four years. In addition, despite Spain's economic recovery of 2014 – which is led by Catalonia – and therefore the increase of taxable activity, the Spanish Government will reduce the Catalan executive's funds by €500 million this year while the deficit target becomes stricter. On Wednesday, the Catalan President, Artur Mas, already stated that, considering the austerity measures adopted since 2011, further budget cuts cannot be undertaken in 2014 without dramatically damaging basic public services such as healthcare and education. Instead of relaxing the deficit target or transferring pending funds and debts to the Catalan Government, the Spanish Finance Ministry will reduce the interest rate that the Autonomous Communities have to pay back to 1% for the loans of the Liquifidity Fund (FLA).

FC Barcelona's Economic Vice President, Javier Faus, has given a press conference on Tuesday to review the 2013/14 finances, revealing that the Catalan club has made its second highest profit ever of €41 million a figure previously only topped by the 49 million euros in the 2011/12 season. Furthermore, Barça posted a record income of €530 million. Faus also explained that in the four seasons since 2010/11, when the new Board came into power, the club has an accumulated profit of €113 million. In addition, The 2013/14 season also witnessed a reduction in the net debt by 44 million euros, meaning that since the new Board took over, this figure has decreased by 143 million, and as of June 30 of this year now stands at 287 million euros, while four years ago it was 431 million.

According to a report published on Thursday by Barcelona's Chamber of Commerce, the Spanish Government's investment in infrastructure in Catalonia has dropped by 50% in the last 10 years, while it has been reduced by 25% throughout the rest of Spain in the same period. The President of the business association, Miquel Valls, stated that this reduction represents "a break"in the Catalan economy's growth, which could be in a better position to speed up the economic recovery. The report takes into account the executed investment made by the Spanish Government and its public companies in areas such as airports, high-speed railway or harbours. In 2006, the Spanish Parliament recognised "a historical" lack of investment in Catalonia when it approved the Catalan Statute of Autonomy and set a minimum investment percentage share to be made in Catalonia to compensate this in the next 7 years. This share was never respected.

On Tuesday, the Spanish Finance Minister, Cristóbal Montoro, rejected to review the funding scheme of the Autonomous Communities to grant them more resources, despite the fact that the Catalan Government is under-budgeted. On Wednesday, the Spanish Finance Ministry downplayed Catalonia's fiscal deficit by issuing the so-called fiscal balances, which calculate the inter-territorial fiscal transfers, posting a significantly low Catalan contribution. According to the Spanish Government's new calculations, Catalonia gave away €8.46 billion in 2011, representing 4.35% of its GDP. The figure is significantly lower than the Catalan Government's calculations: €15.01 billion and €11.09 billion, using two complementary methodologies used by the Spanish Executive in 2008 and agreed among independent university experts.