business

Antoni Abad, the Chairman of the Terrassa-based employer’s association Cecot, forecasts “a small growth” of Catalonia’s GDP in 2014. However, Abad also warned against “the fragility” of the current situation since economic recovery is just starting and indicators are posting positive data but still with manifold limitations. When asked about the possible consequences of the political situation in Spain, Abad insisted the Cecot members “are not afraid” of the self-determination consultation vote. He reminded Spain that consultations are “structural elements” of democratic life, adding he was hoping for “rationality” and “dialogue” to impose themselves in the political sphere. Abad also denied the words of the Spanish Minister for Home Affairs, Jorge Fernandez Diaz, stating that the independence issue had not created any “conflicts” in Catalan families.

The President of the Catalan Government, Artur Mas, insisted this Tuesday he will organise a self-determination vote within the legal framework on the date agreed upon by four political groups 3 weeks ago. In a press conference following the first Cabinet Meeting of 2014, Mas ruled out the possibility of making changes in the government he chairs on the short-term, after speculations that the Catalan Left-Wing Independence Party (ERC) could sit in the Cabinet, formed by members from the Centre-Right Catalan Nationalist Coalition (CiU) and independents. In addition, he identified “a cross slope” in the economic, social and political context, referring to a slight recovery, after 6 “terrible and fearsome years”.

For the first time since the beginning of the crisis, sales have already shown a “slight recovery” during Christmas, highlighted the President of Catalonia’s Confederation of Commerce (CCC), Miguel Ángel Fraile, who is “very optimistic” about the upcoming winter sales. Indeed, during the months of November and December, retail consumption have registered an increase of 2% and 3% compared to the previous year. It is expected that Catalans will spend a total of about €800 million during the winter sales, between 3% and 5% more than last year. These estimates by CCC also indicate that, on average, each citizen will spend €90 for the purchase of clothing items.

In the first eleven months of 2013, Catalonia has been the favourite destination in Spain for international visitors. Indeed, 14,838,018 foreign tourists have travelled to Catalonia during this period, meaning 25.8 % of the total number of international visitors in Spain. This represents an increase of 7.4% over the same period in 2012. In November, Catalonia has welcomed 836,654 foreign tourists and has only been surpassed by the Canary Islands (1,073,759). Stays in hotels have also registered an upward trend: they have increased by 8.6% at Spanish level this month and by 4.1% in Catalonia. The majority of these foreign tourists come from France, the UK, and Germany while the number of visitors from Russia and Belgium has also increased significantly.

The Catalan Government put 4 buildings up for auction this Friday, following a plan to rationalise the spaces it uses, reduce spending and increase revenue in order to reduce public deficit. The headquarters of the Catalan Finance Ministry, located in a 8,000 square metre Art-Nouveau building in Barcelona’s Rambla Catalunya, has been bought by an Italian pharmaceutical company through FINAF 92 for €23.2 million. The other building, with a surface of 7,200 square metres, was used by the Catalan Police and is located in front of Barcelona’s Ciutadella Park. It has been bought by the German hotel company MO Düsseldorf Immermannstrasse GmbH & CO. KG for €14.1 million. On Thursday, the Catalan Government announced a plan to reduce its office space by 45% in the coming year by concentrating services. The plan includes selling the most attractive buildings.

Fira de Barcelona - the Catalan capital trade fair organisation - expects to end 2013 with revenues of €117.2 million, meaning 10.9 % more than targeted, 1.7 % more than last year and 2.2 % more than in 2011. The institution’s management stressed that such good results came from the “ability to attract major international events”, such as the Mobile World Congress or the EVS27, dedicated to the electric vehicle. The foreign sector already contributes to 50% of the Fira de Barcelona revenues. Indeed, the institution, apart from welcoming professionals from all around the world, has also created other trade fairs in foreign countries and next year it will open new fairs in Qatar or Japan.

Catalan pharmaceutical company Almirall has announced on Tuesday it will buy Aqua Pharmaceuticals, an American company specialised in dermatological treatments. The $328 million transaction reflects the Catalan multinational’s strategy to diversify its activities, by establishing itself in a sector that will be a “key platform for growth”. Aqua Pharmaceuticals has a portfolio of well known brands for treating acne and skin rashes. This year the total sales of the American company’s products are expected to generate $127 million. According to a statement to the National Securities Market Commission (CNMV), Almirall intends to continue employing the same Aqua management team, to benefit from their experience in the U.S. market.

Juan Rosell, the current Chairman of Spain’s main association of employers (CEOE), and who used to chair the main Catalan employers association, stated that Catalan businesspeople are shifting towards pro-self-determination stands. Rosell, who is openly against Catalonia’s independence, stated that “business people are not aliens” and “if society has changed its views in the last few years, so have businesspeople”. The top representative of Spanish business-owners stated that the current moment is “extremely serious”. Rosell demanded to “bridge the gap, put all the economic data on the table and analyse the pros and cons for one side and the other one” regarding Catalonia’s independence from Spain. Rosell asserted that companies have not left Catalonia due to the self-determination process.

The Spanish Prime Minister replied on Tuesday to the President of the Catalan Government’s proposal to discuss in a private meeting the question wording, date, and procedure of Catalonia’s self-determination vote. The Financial Times had also urged the Spanish Government to negotiate and make an offer to Catalans, while adding that “the ingredients” for a solution can be found in Catalonia’s question. While Mariano Rajoy answered he was open to meet with Artur Mas, he added he has nothing to negotiate on and nothing new to say. “The [Spanish] Government will not make any concession” regarding Catalonia’s self-determination. In addition, Rajoy insisted the vote “will not take place”. Furthermore, he added that Catalonia will not have a special funding scheme.

Housing prices increased by 0.8% in Catalonia during the third quarter of 2013, which is the first quarterly increase in the last three years. However, despite the positive figures, in annual terms prices at the end of September were 8.1% lower than those registered 12 months ago, due to the price falls registered in the second half of 2012 and the first 6 months of 2013. Between July and September 2013, prices of newly-built flats and houses in Catalonia rose by 5.7%, while those of second-hand housing were still decreasing (-0.3%). However, overall figures suggest that the real estate market may have reached the bottom and that its recovery might be about to start. In the whole of Spain, housing prices rose by 0.7% in the third quarter of 2013.

1 million passengers are expected to use the new direct High-Speed Train between Barcelona and Paris within a year. The Spanish Transport Minister Ana Pastor, her French counterpart Fréderic Cuvillier and the Catalan Minister for Planning and Sustainability Santi Vila, have described the High-Speed connection as a “milestone” that will further develop the bond between states and develop their economy. The very first direct train from Barcelona to Paris circulated last Sunday, connecting seventeen cities between the two states. Both Catalan and French ministers have stated they had taken measures to accelerate the construction of the Perpignan-Montpellier section, where trains are still circulating at a regular speed, making journeys significantly longer.

Next February, the Mobile World Congress (MWC), the world’s most important event in the mobile industry, will open its doors in Barcelona for the 9^th consecutive year. The major companies in the sector will introduce new products or give conferences on applications designed for many innovative uses. By hosting the fair each year at least until 2018, Barcelona, named Mobile World Capital, is looking to become an international leader in this industry. The city has also created a HUB to develop the sector even further. The 2014 edition of the fair expects to break all records. The Director of the MWC, John Hoffman, stated that 75,000 visitors were expected, meaning 3,000 more than last year. Besides, once the fair will be over, it is estimated the local economy could have gained €340 million from it.

Barcelona’s El Prat Airport has again registered positive passenger figures in November with the number of people transiting through its facilities reaching 2.38 million, 4.5% more compared to November 2012. Furthermore, the number of intercontinental passengers grew by 22.8 %. According to the Spanish Airport Authority (AENA), El Prat is currently on an upward trend. On the other hand, Madrid Barajas Airport registered 2.98 million passengers in November, representing a 5.3 % decrease compared to the same month last year. Since January 2013, 32,903,000 passengers have transited through Barcelona El Prat, a 0.2% decrease compared to the first eleven months of 2012. At Spanish level, the figures registered a 3.9% drop due to the economic crisis.

Multinational corporation T-Systems has officially unveiled one of its four operations centres at world level, based in Barcelona. The German company has invested €2.5 million in the centre, creating 170 new jobs in 2013. 350 more employees are expected to be hired in 2014, according to T-Systems. The Catalan Minister for Business and Employment, Felip Puig, who also attended the press conference, stressed that T-Systems is “one of the Catalan Government’s most valuable partners in the field of technology”. Puig added that the Catalan Executive and the German multinational had signed various agreements, lasting from 6 to 10 years, which were worth € 400 million and would generate 2,000 jobs.

Italian Investindustrial has sold 49.9 % of its stake in PortAventura amusement park to KKR, a US investment fund. With this operation Investindustrial has incorporated a long-term partner in the project, while making sure to be the majority shareholder with 50.1 %. The transaction will be effective in January 2014 and is only awaiting regulatory approvals. In the long-term strategy, PortAventura is looking for other agreements to broaden the range of leisure activities and develop further at international level. A few weeks ago it was made public that Investindustrial would join the BCN World project by building and managing 3,000 hotel rooms. Besides, it has been announced that the Cirque du Soleil would give daily shows in PortAventura from the summer of 2014.