catalan way

The Catalan economy’s indicators are posting positive figures and the research department of the BBVA bank has reviewed its growth forecast for Catalonia for the current and the next years. According to the report issued on Thursday by the BBVA, the Catalan economy will grow by 1.3% in 2014 and by 1.8% in 2015, which are higher rates than those initially predicted. On top of this, 140,000 new jobs will be created in those two years, which represents a 4.3% employment growth. In addition, it puts an end to the negative trend that destroyed 17.3% of the existing jobs between 2008 and 2013. The BBVA also praises “the very significant effort” made by the Catalan Government to reduce public deficit in the last few years, although they will not be enough to meet the strict deficit objectives for 2014 and 2015, unilaterally imposed by the Spanish Government.

“There is one thing that I always find beneficial […] and that is to listen to people; not necessarily because you agree but, without listening, you will never get any wiser yourself”, stated Margrethe Vestager, the new European Commissioner for Competition, when she was asked about Catalonia’s self-determination process. However, Vestager, who used to be Denmark’s Deputy Prime Minister, also added that Catalonia’s self-determination debate should take place “without European interference”. The new Commissioner highlighted that it is “a Spanish-Catalonian issue” and that she has “a deep respect for countries organising themselves in different ways”, underlining the diversity of “constitutions and different histories” as a great European value. She explained that in Denmark they have “a long tradition of referenda” but that she “will not prescribe how other people should do things”.

The Spanish Prime Minister, Mariano Rajoy, is rejecting the offer sent by the President of Catalonia, Artur Mas, to meet in Barcelona to coincide with the former’s trip to the Catalan capital on November 29. According to Alícia Sánchez-Camacho, the leader of Rajoy’s party in Catalonia, “it is not the time” for such a meeting. In addition, she also said that making the offer in a press conference through the Catalan Government’s Spokesperson “is not the way” of doing things. The Catalan leader of the People’s Party (PP) also pointed out that Rajoy is travelling to Barcelona “to attend a party rally”. During the weekend, the Spanish PM had announced his trip to Catalonia in order “to better explain himself” and talk to Catalans after November 9’s symbolic vote on independence. The Catalan Government invited Rajoy to hold a meeting with Mas as well in order to set institutional dialogue once again. Rajoy is refusing to discuss self-determination and according to Sánchez-Camacho he should only talk with Catalan representatives about the same things he would talk about in the other Autonomous Communities.

On Wednesday, the Spanish Finance Minister, Cirstobal Montoro, refused to start negotiating and launching a new funding scheme for the Autonomous Communities before 2016, even though the current model had to be reviewed before January 2014. The Catalan Government has been insisting on its review since 2012, since the system does not properly fund basic public services such as healthcare and education in times of economic crisis, areas which are entirely managed by the Autonomous Communities. In addition, Catalonia suffers a permanently high fiscal deficit: each year Catalan taxpayers have to give away some 8.5% of Catalonia’s annual GDP to fund services and infrastructure in poorer regions in Spain. The problem is that after such transfers, public services in the poorer parts of Spain have more money per inhabitant than the Catalan ones and basic infrastructure in Catalonia is not built. The Spanish Government has been postponing the new model, despite the territorial tensions and the self-determination demands.

Between the 18^th and the 20^th of November, Barcelona is hosting the 4^th edition of the Smart City Expo World Congress. This year it will be the most international edition so far, with 400 cities from 5 continents represented, a 33% increase. Participating cities include Berlin, Munich, Boston, Chicago, New York and San Francisco, who are present at the Fira de Barcelona exhibition centre. The goal of reaching 9,000 visitors may be achieved, as nearly 700 people attended the opening ceremony on Monday. Companies are presenting technological applications for improving the sustainability, mobility and quality of life of everyday citizens. Applications being presented this year include drones for cities, technology to monitor free parking for busy commuters, and applications to assess air quality for the physically active and for choosing the best place to open a business.

Despite Catalonia-based prosecutors having concluded that there is no legal basis for such a complaint, the Director of the Public Prosecution Office, Eduardo Torres-Dulce – directly appointed by the Spanish Government – will finally file it, after 10 days of controversy. All the opposition parties have accused the Spanish Government of pressuring Torres-Dulce and taking a political problem to court. In addition, the Catalan Government accuses Rajoy’s People’s Party (PP) of not respecting the separation of powers. On Monday, the Catalan prosecutors announced they were not backing the complaint, but the Madrid-based Director stated he would carry on anyway. On Wednesday, Torres-Dulce held a long meeting with Spain’s main prosecutors, who backed him but not unanimously. The complaint will be against the Catalan President, Artur Mas, but also against the Vice President, Joana Ortega, and the Education Minister, Irene Rigau.

The Chief of Spain’s Army Defence Staff, General Jaime Domínguez Buj, was asked on Tuesday about the situation in Catalonia and he has implicitly compared it with a colony. The main General of the Army stated that “when the metropolis is weak” is the time when “the fall takes place”. He added that a “processes” such as Catalonia’s happens “when the central power is weak”, as happened in 1898, when Spain lost Cuba and the Philippines, he said. His words have caused quite some controversy. Later on, Domínguez Buj, nuanced his previous statement and said he was referring to 1808 and the Spanish War of Independence against Napoleon’s Empire. Such a war helped some of Spain’s American colonies to get their independence.

Furthermore, the Catalan Executive regrets that the Spanish Prime Minister, Mariano Rajoy, has not made any political proposal in his answer to the letter sent by the Catalan President, Artur Mas, after November 9’s symbolic vote on independence. Rajoy answered Mas’ letter and highlighted that Spain’s “sovereignty” cannot be negotiated, therefore rejecting the possibility of any discussion about a mutually-agreed referendum on Catalonia’s independence. Coinciding with the Spanish PM’s trip to Barcelona on November 29, the Spokesperson for the Catalan Government, Francesc Homs, stated that Mas “would be delighted to welcome Rajoy at the Generalitat Palace”. He “has the doors open” to talk with Mas about the demands of Catalonia’s society. However, Homs also warned the Spanish PM that such dialogue should not become “a monologue”.

The public prosecutors based in Catalonia refused to back their Madrid-based boss regarding the complaint against the President of the Catalan Government, Artur Mas, and other members of his cabinet for authorising November 9’s symbolic vote on independence. According to them, there are not enough legal reasons for filing such a complaint, despite the pressures from Spanish nationalists to do so. The Director of Spain’s Public Prosecution Office, Eduardo Torres-Dulce – who is directly appointed by the Spanish Government – had unsuccessfully been trying to obtain the explicit support from his Catalan team. However, Torres-Dulce is likely to follow through with it anyway, after several members of the Spanish Government, the People’s Party (PP) and other Spanish nationalist parties urged him to do so. In any case, the Catalan prosecutors’ rebellion will not provoke a schism in this hierarchical institution, since on Tuesday afternoon they confirmed they will obey Torres-Dulce if he insists. The Catalan Government and political parties based in Barcelona warned that Madrid’s pressures seriously damage the separation of powers. Meanwhile, the PP accused Catalan prosecutors of being “contaminated by the atmosphere” of “radical secessionism”.

On Sunday the Spanish Socialist Party (PSOE) approved another solemn declaration proposing a Constitutional Reform, after it already did so in July 2013. Once again the PSOE has not detailed their proposal, but insists on building a true federal model, going beyond the current Autonomous Community system. The People's Party (PP) – which runs the Spanish Government – opposes such a reform although they "agree to talk" about it. The PSOE wants the PP to "immediately" approve the creation of a Constitutional Reform committee at the Spanish Parliament and set expert hearings to debate ideas. However, they do not want "to rush" to solve Catalonia's "urgent problem", as explained by the President of Andalusia and PSOE's Chairperson, Susana Díaz. Meanwhile, the alternative left party Podemos, which could win the next Spanish elections, has elected Pablo Iglesias as its Secretary General, who has promised a broad Constitutional Reform. Iglesias recognises Catalonia's right to self-determination but considers that the Catalan Government cannot approve a unilateral declaration of independence.

On Friday, the Spanish Government approved the €1,350 million compensation to Escal UGS, the company behind the controversial Castor Project, a submarine facility built to store 1.3 billion tonnes worth of gas reserves off the Ebro Delta coast. This project failed after it was found to have caused almost 1,000 small earthquakes. This amount will be financed through increased tariffs to gas consumers over the next 30 years, resulting in public compensation for a private investment. The Spanish Government is obliged to pay the developer Escal UGS, because of a clause in the 2008 Royal Decree whereby the State would agree to compensate the company should the project be unable to be completed. An appeal of this law was rejected by the Spanish Supreme Court last October. The Spanish Government has argued that this solution is cheaper than operating the project. The Catalan Government however, which had opposed the project from the start, has appealed this decision to the Constitutional Court.

After days of controversy, the Director of Spain's Public Prosecution Office, Eduardo Torres-Dulce, suggested that a judicial complaint against the President of the Catalan Government, Artur Mas, might not be filed because the case "is already at court". The People's Party (PP), which runs the Spanish Government, had announced that the Public Prosecution Office would file a complaint against Mas and some Catalan Ministers for having authorised November 9's symbolic vote on independence. Such an announcement seriously questions the separation of powers in Spain. On top of this, several Catalonia-based prosecutors protested over the Spanish Government's pressures. Torres-Dulce, who is appointed by the Spanish Government, decided to wait and meet on Wednesday with his delegate in Catalonia. They agreed to further analyse the case and make the decision in Catalonia. Such a legal step against Mas could provoke a boomerang effect against Madrid, mobilising a wide part of Catalonia's society.

As he announced on Tuesday, the President of the Catalan Government, Artur Mas, has begun a round of talks with the leaders of the parties that ran in the last Catalan elections supporting the right to self-determination. Mas aims to gather views and proposals about future scenarios and early elections. This includes the parties that backed the current self-determination process and the organisation of a consultation vote on November 9, by reaching an agreement in December 2013. But it also includes the Catalan Socialist Party (PSC), which ran in November 2012 backing a legal self-determination vote but whose previous and current leaderships do not back the current process. After the talks, Mas will take a few days to think, and very likely to talk again with some parties, and on November 24 he will announce his own road map for the next few months.

According to figures from the Spanish Institute of Statistics, prices in Catalonia have risen from -0.3% in Octoeber 2013 to an annual inflation rate of 0.1% in October this year, the same as that of September. Inflation has been kept low by falling prices of electricity, while the rising cost of fresh food has prevented negative inflation. In Spain, prices have risen from a -0.6% annual inflation registered 12 months ago to a negative inflation of -0.1%, accumulating four consecutive months of negative rates. The prices of fresh food and non-alcoholic beverages influenced the most the annual price increase in Catalonia, and thus offset the low performance in other sectors that are contributing to keep annual inflation close to zero in Catalonia, and in the negative for the last four months in the whole of Spain.

The left-wing Catalan independence party ERC, which has shared a parliamentary stability agreement with the governing centre-right pro-Catalan State coalition CiU for the last 2 years, is pushing to begin a new political period. The ERC’s leader, Oriol Junqueras, met on Thursday with the President of the Catalan Government and CiU’s leader, Artur Mas, and confirmed to him that they will not back the new budget for 2015. The evening before, Junqueras had presented his road map for the next few months. The ERC wants early elections now, which would become “constituent elections” if a majority of pro-independence parties were to win. Furthermore, the ERC prefers to run alone, not in a shared electoral list. If Catalans voted for a majority of pro-independence parties, the new Parliament would start building the new state’s basic structures and drafting a Constitution, which would have to be later ratified through a binding referendum.