catalan government

The Catalan President, Artur Mas, announced that he along with ministers, deputy ministers, and directors-general would not receive the Christmas bonus this year. The measure affects all the Catalan Government’s higher-ranked staff and is meant to send a message of austerity. 350 people will see their salary reduced, saving 1.8 million euros of public money. It is an answer to doctor and nursing unions, who had asked politicians to reduce their salaries. Last year, higher-ranked officials experienced a 15% salary cut.

September has been a bad month for employment over the last number of years, but this past September is the worst in the last 11 years. The Spanish Government has blamed the budget cuts undergone by the Autonomous Communities for the unemployment increase. The Spokesperson for the Catalan Government considers Madrid’s statements as “offensive” and “pitiful”, and he stressed that the Spanish Government had asked them to double their public spending cuts. He also added that the Spanish Government has not paid the money that it owes.

The Catalan Government has approved the new Law of Budget Stability, which foresees a gradual and significant reduction of the deficit in the following years. The law permanently fixes an allowed deficit limit of 0.14% of Catalonia’s GDP from 2018, two years earlier than the deadline required by the Spanish Constitution’s modification. According to the Catalan Finance Minister, Andreu Mas-Colell, the law demonstrates Catalonia’s “strong commitment to budget stability”. In addition, the law creates a fund to return public debt, which will be filled with any additional revenues or budget surplus.

The current Catalan Government, which took office last Christmas, hired an external auditor to better understand the state of the public finances. Deloitte has increased the Government’s deficit for 2010, from 3.86% to 4.2%, in line with the last data known and internally audited. The Catalan Minister for the Economy, Andreu Mas-Colell, explained that “one out of every three euros spent [in 2010] was not covered by tax revenues”. The main opposition party, which formed part of the previous Government and was in charge of finances, stated that their management cannot be made responsible for the deficit increase, as the deficit calculation criteria has changed.

The Spanish Constitutional Court has accepted to make a decision on the Spanish Government’s appeal against the Catalan law promoting the Occitan language in the Val d’Aran County, in the Pyrenees. The Val d’Aran has autonomy status within Catalonia, considering its historic links with the Occitan culture. It is the only place where Occitan has the status of preferred co-official language. Now, this status has been cancelled because of the Spanish Government’s appeal. The Catalan Minister for Culture considers the appeal “an attack against language diversity”.

As carried out on two other occasions in the last year, the Catalan Government is preparing to release of 3,800 retail bonds to get cash. Financial sources informed ACN about the operation, which has not been confirmed by the Catalan Ministry of Economy. The bonds would be offered before November 21st, the day that the bonds issued by the former Catalan Government in autumn 2010 expire.

The rating agency Fitch reduced Catalonia’s long term debt’s appreciation, going from A to A- because of the expected weak economic growth. Nevertheless, Fitch recognised the efforts to reduce the public deficit carried out by the Catalan Government. Fitch has lowered the debt rating of five Spanish Autonomous Communities and given others a negative perspective for the future. The Catalan Ministry of Finance thought that the reduction is due to “the international situation” and stressed that efforts are already made.

The Catalan Government approves the modification of the Worship Centres Law from 2009. Town halls will no longer be obliged to save plots for the construction of new religious centres. No architectonical aspects are banned but the law gives town halls the authority to decide on the conditions of construction regarding aesthetics. In some Catalan towns, there have been complex controversies regarding the construction of mosques in recent years. Some Catalan towns have more than a 30% immigrant population, most of who have arrived in the last 10 years. The current approach is to give the authority to each individual town hall to adapt to its local reality.

In a solemn ceremony and accompanied by his family and friends, the FC Barcelona manager has received the greatest honorary distinction from the Parliament of Catalonia.

The Catalan Government is reducing public deficit and cutting public spending by 10% this year. All areas are affected, including healthcare, which is one of the departments with a smaller percentage budget reduction. Last August, 25 community health centres (CAP) reduced their opening hours, closing their emergency room during nights and weekends as they were scarcely used; as of this September, another 21 centres in a similar situation have been added to the list. Citizens have been camping in some CAPs to protest about the decision.

The Catalan Government approves a support program that will advise the promotion and development of activities from the Union for the Mediterranean Secretariat, whose headquarters are in Barcelona. It will provide advice on Euro-Mediterranean policy and projects, until the UfM has enough resources of its own.

A grant allocated to the poorest, which is supposed to be their only income, was not paid regularly on August 1st as the Catalan Government changed the payment method. The official explanation is that the change was taken to avoid fraud and be able to ensure the sustainability of this grant system. From now on, the 37,000 beneficiaries will have to personally go the bank with a pay check that will be sent to them. In mid-August, most of the beneficiaries had already received the money. The opposition has heavily criticised the Government, which has recognised errors but stressed that many people were getting money without meeting the conditions. 500 beneficiaries and social workers protested on Thursday in Barcelona.

Catalan President Artur Mas will give full support to the next Spanish government if it accepts a new fiscal arrangement for Catalonia. Mas says his party, the centre-right nationalist Convergència i Unió, is the only political force able to become a counter-power to the Spanish conservatives, the most likely winners of the next general election

The deal introduces new restrictions on public spending while protecting health, education and social services. The conservatives have asked the Government to change its foreign policy strategy and make it more commercially oriented.

The Irish company has accused the local administration of not honouring current agreements, in place until 2013. The Catalan President has assured that the Government has absolutely “fulfilled” the current agreements and that the “problems started when these agreements wanted to be modified”. The low-cost airline is in a dispute with the Catalan Government over its continuity in Girona-Costa Brava; Ryanair is asking for an extra 7.5 million euros. The Catalan Minister for Transportation considered Ryanair’s attitude as “blackmail”. The Government announced this evening that it will freeze current negotiations with Ryanair until it has the “assurance” that the Irish company “fulfils what it signed”.