business

SEAT President, Jürgen Stackmann, has shown "great optimism" for the future competitiveness of the company's plant in Martorell (Greater Barcelona). In early May, the Volkswagen group, to which SEAT belongs, announced it will invest €4.2 billion in two of its factories, those in Catalonia and Navarra, over the next four years. The investment will be used to upgrade the existing facilities and increase competitiveness, in order to assemble a greater number of models. However, it was not disclosed how this billionaire investment will be split among the two factories. During a conference held on Wednesday in Barcelona, Stackmann did not say how much of this investment would go toward the Catalan plant. The SEAT president said the company is changing its focus toward a more mature, adult market across Europe in order to cement the future success of the carmaker.

Every party with representation in the 41-seat Barcelona City Council, except for one small party holding 3 seats, were present at the signing of the official proposal that will be sent to the Mobile World Congress' organisers in order to continue hosting the event until 2023. The MWC is the world's main event of the mobile phone-related industries and since 2006 has taken place each year in Barcelona. The current contract expires in 2018 and there are other cities that want to host the event besides the Catalan capital. The 2015 edition attracted 93,000 visitors in Barcelona, 9% more than in 2014. Most of those who attended were executives from international companies staying for 4 or 5 days in town. It was estimated that the 2015 edition had a €436 million impact on the local economy and generated more than 12,600 temporary jobs. Furthermore, Barcelona has been named the Mobile World Capital, a long-term project to make the Catalan city a hub for this industry, hosting standardisation organisations, multinationals and international research centres focused on related technologies.

Last month Catalonia was where the most intense monthly and annual drops in unemployment were registered in Spain. At the end of May, 531,899 people were on the Catalan Public Employment Service's (SOC) lists. This means 21,075 fewer jobseekers than in April 2015 (-3.81%), representing the most significant monthly drop registered for the month of May for 19 years (when the historical record started). Catalonia also registered a 10.2% annual drop in unemployment in comparison to May 2014 - representing 60,405 fewer people unemployed - the biggest annual decline since May 2000. It is has now accumulated 23 consecutive months of annual decline. In Spain as a whole, at the end of May 2015, the number of people registered as unemployed stood at 4.21 million, with 117,985 less jobseekers than in April 2015. An encouraging sign given that in the last 7 years registered unemployment had been falling at an average of 58,000 people from April to May.

Ada Colau, who leads the alternative left and green coalition Barcelona en Comú, is very likely to become the Catalan capital's next Mayor, with there not being enough ground on which to build an alternative majority. Colau won Sunday’s elections by obtaining 11 seats in the 41-seat City Council, just 1 seat more than the incumbent Mayor from the centre-right pro-Catalan State Coalition CiU, Xavier Trias. In the last days, the People's Party – which runs the Spanish Government – and some economic powers have been pressuring for the building of an alternative majority led by Trias. However, the essential parties involved do not support the idea. In order to facilitate her election, Colau has cleared up any doubt surrounding her fully supporting the continuing of the Mobile World Congress, the world's main event of the mobile phone-related industries, which will take place each year in Barcelona until 2018. Colau has validated the offer prepared by Trias' team to extend the organisation of the congress until at least 2023.

The number of mortgages on homes in Catalonia increased by 35.1% in March compared to figures from March 2014, data from the Spanish Statistics Institute (INE) show, with a total 3,229 mortgages approved. This yearly increase strengthens an uninterrupted trend of 11 consecutive months of annual growth, following 44 months of uninterrupted decline. In Spain as a whole, a 19.71% annual increase in March on figures from March 2014 was registered and 19,806 mortgages on houses and flats were granted. These figures represent the 10^th consecutive month of annual growth at Spanish level. In all the Catalan Provinces, an annual increase was also recorded: Lleida came top with a 76% increase, followed by Barcelona (35%), Tarragona (28%) and Girona (22%).

The Catalan capital is Europe's 8^th most attractive city to invest in and the highest-ranked city located in the southern part of the continent, according to the international consultancy firm Ernst & Young. London, Paris, Berlin, Frankfurt, Amsterdam, Brussels and Munich come first in the European ranking and are followed by the Catalan capital, ahead of Madrid, which comes in 10^th position. EY highlights the fact that Barcelona has attracted "enough" international business projects to confirm its place among Europe's top 10 most attractive cities for foreign investment. Catalonia ended 2014 with 108 direct foreign investment projects, a 27% increase on 2013 figures. These projects created 7,089 new jobs. EY stressed that none of the 7 cities ahead of Barcelona were able to transform direct investment into the creation of so many new jobs. London was the closest contender, creating 3,470 jobs, half of that of the Catalan capital.

Catalans are holding their municipal elections on Sunday, while the elections to the Catalan Parliament are to be held in September, as opposed to other parts of Spain, where they are voting for their regional parliaments on Sunday. These municipal elections come after 7 years of economic crisis and also with very uncertain political horizons. Two debates have dominated the campaign: Catalonia’s independence and the rise of new or secondary parties that promise to change the current model. For many people in Catalonia, Sunday’s elections will be a first stage of the ‘de facto’ plebiscite on independence that is going to take place with the Catalan elections on 27 September. It is also the opportunity to support changing the current political, economic and social model, with the rise of alternative left coalitions. Furthermore, majorities and town halls go through significant changes, particularly in Barcelona and the cities of its Metropolitan Area, where there are no clear winners forecast and surprises are likely to happen.

Veremonte has added additional uncertainty to the future of the BCN World project, the largest holiday resort in Europe based in the Costa Daurada, near Tarragona. After a $6 billion investment, it will include – among other facilities – 6 mega-casino hotels, amusement parks and shopping malls. Veremonte – which was initially leading the project – announced that it could leave, depending on how the Catalan Government will develop the final Urban Plan and how it will set the conditions for the second phase of the casino licences' tender. In 2012, Veremonte had already reached an agreement with La Caixa bank to buy 500 hectares of the land. However, the company missed the first deadline and did not meet the second one (last December) to do so, arguing that the final Urban Plan had not yet been approved. The Catalan Government then jumped in and reached an agreement with La Caixa for the rights to buy the land and guarantee the project's continuation. Veremonte still continues to be linked to the project through the casino licence tender, for which it is running with Hard Rock and Melco.

Catalan exports totalled €15.66 billion for the period January-March 2015, a 6.6% growth on figures from the 1^st quarter of 2014. This represents a new historic high, setting a new record for Catalonia’s export sector, which has been growing strongly over the last few years. As well as this, exports in March increased by 15.4%, reaching the highest amount ever recorded for a single month. Exports from Catalonia during the first quarter of 2015 represent 25.7% of Spain’s total exports. Regarding Catalonia’s imports, they totalled €18.48 billion, a 4.4% increase. Catalonia’s trade deficit reached €2.82 billion, representing a 6.3% drop on figures from the previous quarter.

The 19^th edition of Barcelona’s International Building & Construction Show opened its doors on Tuesday, rebranded as 'Beyond Building Barcelona-Construmat'. The event – which is held every two years – will be on until Saturday 23 May, hosting around 300 exhibitors from 15 different countries. For the first time after 7 years of continuous decline for the construction sector, Construmat – the most important trade fair for this industry in Spain – kicks off at a time of gradual recovery for this sector, according to the figures of the last few months. For Josep Miarnau, Chairman of the show, this year represents a turning point and the end of a cycle. Held in the Gran Via venue of Fira de Barcelona, the show is organised around 4 main thematic pillars: Innovation, Design, Renovation and Sustainability. Moreover, internationalisation will play an important role as well, with 145 projects from all over the world at the tendering stage.

The 'Allure of the Seas' is going to be based in the Catalan capital for the entire summer season, from where it will start and end 25 trips. At 362 metres long, it is the world's largest cruise ship, and the equivalent to 4 football pitches. Measuring 66 metres across, it is able to transport more than 6,300 tourists and 2,380 staff. It has 16 docks and 2,700 cabins. This Tuesday, it is starting its first trip of the season from the Catalan capital. During the summer season, it is expected to transport 157,000 passengers, who will have an economic impact of €17 million on Barcelona's local economy, according to Royal Caribbean's General Manager for Spain and France, Belén Wangüement. Then, the boat will travel to the Caribbean Sea, where it will spend its winter season. The President of Barcelona's Port Authority, Sixte Cambra, hopes to improve last year's cruise liner figures and exceed the 2.5 million mark this year.

The Barcelona-based business schools IESE and ESADE have been ranked among the 10 best business schools in the world according to the Executive Education Ranking 2015 by the ‘Financial Times’. For the 17^th year, the British newspaper rated the best 85 customised programmes (tailor-made for corporate customers) and the top 75 open programmes (available to all working managers) in the world. With regard to the customised programme ranking, IESE came top worldwide while ESADE (part of the Ramon Llull University) is ranked 12^th. As for the classification of the open programmes for executives, IESE ranked 3^rd globally while ESADE was 7^th. Among the top 100 educational institutions in the ranking, one can find another Catalan business school as well: Barcelona’s EADA is in 61^st position for its customised programmes, and in 56^th for the open ones.

A major step forward in Catalonia's public research on technology has been made this month, with the official establishing of Eurecat on 1 May. The new integrated hub is a result of the merger of 5 advanced Catalan technology centres in the first phase. Last Wednesday, it incorporated a further 13 companies onto its Board. Eurecat is aimed at boosting technology research and its business applicability, particularly among private SMEs, which represent most of Catalonia's economy. Conceived as an engine for key technologies, it is a tool for implementing the Strategy for the Smart Specialisation of Catalonia (RIS3CAT). The latter was drafted by the Catalan Government following the EU Commission's decision to make 'smart specialisation' a prerequisite for attracting EU funds during the period 2014-2020. By the end of 2020, the centre is expected to have attracted funding from the EC's Horizon 2020 framework and the RIS3 to the tune of €200m.

The Spanish Government have finally announced that construction work for the train shuttle connecting Terminal 1 of Barcelona El Prat Airport to the city centre will kick off "in a few weeks", after many years of delay. The statement was made on Thursday by Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, after the weekly Cabinet meeting. The new train shuttle will carry travellers between T1, the newest and busiest terminal, to Barcelona's Sants Station in 19 minutes, making a stop at Terminal 2. According to the Deputy PM, the Spanish Ministry of Transport plans "a more-than-€200 million" investment in the project. Santi Vila, the Catalan Minister for Planning and Sustainability, described the announcement as "excellent news". An estimated 7 to 9 million people are expected to use the train shuttle each year.

The German multinational company Basf announced on Tuesday it will invest €21 million to expand one of the plants it has in the area of Tarragona, in Southern Catalonia. Basf operates several plants in the Tarragona area, which is Spain's main centre for the petro-chemical industry and one of the most important ones at European level. The investment announced this Tuesday is the largest made by the Spanish division of the German multinational in a single plant in many years, confirmed the company. The centre producing the innovative liquid fungicides for sustainable agriculture will extend its facilities and increase production capacity of these fungicides for high performance crops. Once the work is completed, the company will add 30 workers to its staff. Basf expects the expansion work to end and the new production line to be fully operational by the end of next year.