catalan government

“Listen, and listen carefully. Do not get angry if you don’t like what you see. And put solutions on the table, if you have them”, the President of the Catalan Government, Artur Mas told Spain the day after the 1.5 million strong demonstration for Catalonia’s independence. He also stated he will work to create “state structures”. The Spanish Government refused to comment directly on the event, stating it should be analysed “coldly”. However, it said Spain and Catalonia should have other priorities.

In the largest demonstration Barcelona has ever seen, 1.5 million citizens according to the Catalan Police marched in Catalonia’s capital after the banner “Catalonia, Europe’s new state”. The Spanish Government reported a reduced number of 600,000 participants while organisers talked of 2 million participants. The Catalan President did not attend it because of his institutional position, but gave his support at a personal level. Most of the Catalan Government was present. Members from most of the Catalan political parties were also present, including the Socialists (PSC) but at a personal level. The only absentees were representatives from the People’s Party (PP) and anti-Catalan nationalism ‘Ciutadans’ (C’s). Many families gathered for the demonstration which ended with the petition to start the secession process.

The President of the Catalan Government, Artur Mas, leader of the Centre-Right Catalan Nationalist Coalition (CiU), sent a warning message to the rest of Spain and in particular to the Spanish Government. “If there is not an agreement on the economic bases”, “Catalonia’s way to freedom is open”. The Spanish Prime Minister and leader of the People’s Party (PP), Mariano Rajoy, stated on Tuesday morning that Spain and Catalonia should have other priorities. The Spanish Government and most of the rest of Spain are against a new fiscal agreement between Catalonia and Spain, reducing the Catalan solidarity contribution, which represents some €17 billion per year. Furthermore, the Catalan PP has stated it will stop giving its parliamentary support to CiU.

‘Barcelona World’, located next to Salou’s beaches and PortaAventura, will have 6 new theme parks, as well as 12,000 hotel rooms, casinos, convention centres, golf courses and other amusement facilities. 10 million people are expected to visit the mega-resort funded by Veremonte each year, which will create 40,000 jobs. ‘Barcelona World’, located next to Tarragona in the Costa Daurada, will be Europe’s largest amusement resort and among the world’s largest, targeting family and business tourism. Construction may be complete by late 2016. The project has been announced after the expiration of the offer made to Las Vegas Sands to build its casinos next to Barcelona. This American company has not announced if it will finally build ‘Eurovegas’ in Madrid yet, but the Barcelona option seems to be ruled out.

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

The Catalan Finance Minister, Andreu Mas-Colell, asked the Spanish Government to set up a temporary short-term loan system if the announced Liquidity Fund for the Autonomies is not in place this September. The Catalan Government has been insisting on the urgent need to define and put into force this financial tool to provide the Autonomous Communities with liquidity now their access to international financial markets is impossible as they face unsustainable interest rates. In addition, Mas-Colell stated that it is very likely that more budget cuts will be needed in 2013 to meet the 0.7% deficit target. He also criticised the Spanish Government for imposing stricter deficit objectives for the Autonomies while Brussels gives Spain greater flexibility.

The decision by Spanish Government to restrict access to the public healthcare system could leave 600,000 people in Catalonia (8% of the population) without primary and specialised medical attention. 180,000 of these people would be foreigners. The Catalan Minister for Health, Boi Ruiz, explained that the measure aims to guarantee the universal access to healthcare to all the population, independent of their legal status, but at the same time avoid healthcare tourism.

The Catalan Government stated it will meet the 1.5% deficit target for the Autonomies, although it considers it to be abusive considering they manage the main public services and the Spanish Government has kept for itself all the flexibility allowed by Brussels. In addition, the Catalan Government and the Catalan economy suffer from a perpetual lack of investment by the Spanish Government, which takes away 8.5% of Catalonia’s GDP each year, a quantity much higher than the deficit target. The day after Catalonia’s request for €5 billion from the Liquidity Fund, there was no recognition of Catalonia’s fiscal deficit at a Spanish or European level. There were only calls to continue with the austerity efforts. However, the Catalan Government warns of a “serious problem” if the Liquidity Fund is not in place on time by September.

The Spokesperson for the Catalan Government emphasised the money requested comes from Catalan taxpayers, since Catalonia pays €17 billion each year for services and investments in the rest of Spain. Nonetheless, the Catalan Executive stated it will meet the deficit targets and will follow the already approved austerity plan. The Spanish PM and leader of the People’s Party (PP) confirms it will “help Catalonia as we help the other Autonomous Communities”. However, the PP Spokesperson in Catalonia said the Catalan Government will have to accept whatever the conditions are. The Catalan Socialists want to know what the €5 billion will be spent on before supporting the decision. The Catalan Independence parties criticised the decision for having given away Catalonia’s autonomy.

Answering a letter from the Catalan President, the Spanish Prime Minister, Mariano Rajoy, stated he would study the proposal voted by the Catalan Parliament which aims to reduce the solidarity contribution from Catalonia to the rest of Spain and have all taxes raised by a Catalan-run agency. However, Rajoy had previously stated this issue was out of discussion, especially in the current economic context. A vast majority of the Catalan Parliament considers that it is precisely due to the financial stress provoked by the crisis that it is urgent to debate the excessive transfer of revenues from Catalonia to the rest of Spain. The Spanish PM also stated he has agreed to meet with the Catalan President to discuss this proposal, but he expects to talk about many other issues.

Compared to a year ago, the Catalan Healthcare System spent 24.6% less last July than in the same month of 2011. In July 2011, Catalonia spent €143.52 million on pharmaceutical products while it spent €108.10 million last month, when the drug prescription fee began and citizens started to pay a greater share of the cost of prescription drugs. Furthermore, drug prescriptions fell by 20%. In the whole of Spain, pharmaceutical spending also decreased by 24% last July, compared to a year ago.

The ‘number two’ of the Centre-Right Catalan Nationalists (CiU), Josep Antoni Duran i Lleida, immediately replied that the Spanish Government is “the one creating mistrust” because of “its discrepancies” and Mariano Rajoy’s “absenteeism”. He also criticised the Spanish Government for not putting in place an action plan to promote employment, “despite having the tools to do so”. Soraya Sáenz de Santamaria, the Spanish Government’s Deputy Prime Minister and Spokesperson, has blamed Catalan and Basque nationalisms for “promoting a climate of instability”. They create “mistrust and insecurity”, which “keeps away foreign investment” and “job creation”, said Sáenz de Santamaria the week Basque elections have been announced.

Ivan Tibau, the Catalan Government’s Secretary of Sport, emphasises the “great effort” made by the Catalan Excutive to help the High Performance Sports Centre (CAR) and Catalan athletes compete in London 2012. The elite training centre did not receive funding from the Spanish Government for the last two years, amounting to €10.7 million. The Catalan Executive advanced the payment to keep the CAR running. Athletes trained at CAR made up 65% of medals won by the Spanish team at the London 2012 Olympics. Despite this, the Spanish Olympic Committee “closed the door” to the Catalan Government in regards to London 2012.

The President of the Catalan Government, Artur Mas, also talked about the delays of August payments to social care organisations, and he “hoped to be in a better situation” next month. However Mas could not give “a total guarantee” as it depends on whether the Spanish Government activates the Liquidity Fund for the Autonomies. In fact, Mas urged the Spanish Government to do so at the end of this month and said it is “illogical” to make a grand announcement about the measure and then not implement it.

It is expected that the heat wave will last from Thursday to Saturday and that temperatures will climb to at least 34ºC throughout Catalonia. The Catalan Government has closed eight forest areas of high risk and has limited agricultural activity. Civil Protection is on ‘pre-alert’ in 27 counties and firefighters have began pre-emptive surveillance of areas that will be at risk. In other developments, the Catalan Police have found DNA on the cigarette butt which started the fires in Portbou.