catalan way

Catalonia’s main SME association PIMEC and the Catalan Business Circle (CCN) have criticised the regional Government of Madrid for issuing a report not sufficiently backed-up by economic data. In addition, they have accused Madrid’s Finance Minister, who presented the report, of offering a politically-biased version by saying that companies have left Catalonia due to the self-determination debate. PIMEC and CCN stated they do not have data supporting Madrid’s statement. On the contrary, they have data proving that foreign investment has not reduced. In addition, CCN accused the Spanish Government of building a “Greater Madrid” as an economic centre, at the expense of other areas such as Catalonia. PIMEC emphasised the Catalan industrial tradition and the vigour of its economy, although admitted that taxation is higher in Catalonia than in Madrid.

In the last three years, 1,060 companies have moved their headquarters from Catalonia to the region of Madrid, according to a report published by Madrid’s regional Government. The report states that most of them took the decision because of the lower taxes that exist in Spain’s capital, compared to other areas such as Catalonia. Since 2010, 5,000 companies based in the rest of Spain decided to move to Madrid; 21.4% of them were from Catalonia. Paradoxically, 43 cents out of every euro paid in taxes in Catalonia is to pay for investments and services made in other parts of Spain, which turns into an annual fiscal deficit of 8.5% of Catalonia’s GDP, meaning that Catalans are obliged by the Spanish Government to give away €16.5 billion. Meanwhile, the Catalan Government is under-budgeted and obliged to implement severe budget cuts and raise taxes to balance the budget.

The airline group formed by British Airways and Iberia, IAG, announced it will buy up to 220 new Airbus 320 between 2015 and 2020, 120 of which will be for the recently-purchased Catalan company Vueling. IAG bought the Barcelona-based airline last spring and the operation was authorised in July by the competition authorities. Vueling is currently one of the few profitable airlines in Europe, with a business model evolving from a low-cost airline but offering business services and flying to the main airports in Europe. In fact, the company links Barcelona El Prat with 104 destinations (in Europe, the Middle-East, Russia and Africa) and it has operation bases in Madrid, Paris and Amsterdam, among others. Last July, Vueling increased its number of transported passengers by 18% and flights by 13% on July 2012 figures.

This Wednesday, the world premier of the chamber opera ‘Wow!’ takes place at the Festival of Peralada Castle, located in northern Catalonia’s Costa Brava. The libretto is inspired by texts written by Oscar Wilde and Walt Whitman, building a relationship between the two poets. The opera will be staged in the cloister of El Carme Church in Peralada, which has a capacity of 400 people. The play is structured in a single act with a prologue and four scenes. It explores the themes of dreaming, death, ascension and immortality. The score and the text are the work of Catalan composer García Demestres, while the stage director is Xavier Albertí, who is the new Director of the National Theatre of Catalonia (TNC).

The multinational energy company has confirmed it will continue operating in Panama for at least 15 more years through its subsidiary companies Edernet and Edechi, which control 65% of the country’s electricity market, supplying more than 500,000 clients. Gas Natural Fenosa owns 51% of both Edernet and Edechi, while the rest of the shares are controlled by Panama’s Government. The Catalan multinational entered Panama in 1998. According to Gas Natural Fenosa, it has invested more than €400 million to strengthen the electric power network of the Central American country and it foresees an additional investment of €230 million within the next 4 years.

According to a figures released by the Spanish Institute of Statistics (INE), Catalonia’s annual inflation rate fell from 2.6% to 2.1% between June and July. This is the second lowest annual inflation rate that Catalonia has experienced this year, with the lowest being during April when the figure was 1.8%. July’s annual inflation rate in Catalonia is higher than that of the whole of Spain, which is set at 1.8%. The main reason for this fall on last year’s results can be explained because of the lower rate of increases in electricity prices (compared to last year’s rise), as well as the end of the statistical effect of the pharmaceutical co-payment, which was implemented in July 2012 and significantly raised the consumer price of drugs.

The number of public employees in Catalonia has been reduced by 4.76% over the last year, while in the whole of Spain the reduction was of 3.97%, due to the budget cuts in the public sector. However, the number of civil servants in Catalonia was already significantly lower than the Spanish average, according to a study issued by the SME association PIMEC. In January 2013, there were 40.7 civil servants for every 1,000 inhabitants in Catalonia, while the Spanish average was 57.4 and it reached 79.6 in the Autonomous Community of Extremadura. In fact, 26.7% of the Extremadura’s workforce is employed in the public sector, while the percentage drops to 11.1% in Catalonia. PIMEC stated in its report that, if Catalonia had the same proportion of public employees as the Spanish average, its unemployment rate would drop from 24.5% to 20.5%, with 150,000 fewer jobseekers.

Last week, the Catalan Ombudsman issued a report stating that 4% of children in Catalonia under the age of 16 suffer from food deprivation (50,000 children) and he linked it to the current economic crisis. The Primary Care section of the Catalan Society of Paediatrics refutes the Ombudsman’s report warning that the known cases of undernourished children in Catalonia are due to illness and not to financial problems. They stated there are 750 children with food deprivation and most of whom have chronic diseases that cause malnutrition, such as metabolic disorders, neoplasia or anorexia nervosa. They emphasise that nowadays it is incorrect to talk about children with food deprivation in Catalonia for economic reasons, but they are concerned about the future.

Maspons was one of the greatest Catalan photographers of all time. He is famous for his pictures of the former Somorrostro slum in the Barceloneta beach, party life in Ibiza during the 1970s and Barcelona’s left-wing group of bourgeois intellectuals from the 1970s, known as ‘Gauche Divine’. Maspons worked mostly in Catalonia, but also in Paris and the States. In fact, New York’s Museum of Modern Art (MoMA) exhibits pictures taken by Oriol Maspons. He received top honours in Catalonia, such as the Catalan Government’s Sant Jordi Cross and Barcelona City’s Gold Medal. In 2010, he donated his private collection of some 5,500 pictures to Catalonia’s National Museum of Art (MNAC), which will organise a “large exhibition” on his work.

The Landscape of the Geniuses tourism project celebrates how the Province of Tarragona (south Catalonia) has influenced the work of four world renowned artists: Antoni Gaudí, Joan Miró, Pau Casals and Pablo Picasso. The route focuses on four municipalities in the Costa Daurada and the Ebro Valley, in which these artists spent a considerable amount of time, and explore how the region left a lasting impression and inspired them in the creation of their work. The route involves 270 points of interest and accommodation facilities that include: museums, architecture, restaurants, hotels and campsites. A tourist card gives access to all of the visitor centres along the route as well as numerous discounts.

Both Barcelona-El Prat and Madrid-Barajas received 3.8 million passengers during the month of July, a figure which represents an increase of 0.3% for the Catalan and a decrease of 14.4% for Madrid’s compared to July 2012. The figures released by Aena, the public body that controls the majority of Spain’s airports, show that El Prat records its highest ever amount of passengers for the month of July and, up until now, a total of 20 million people have passed through its gates this year. Girona airport had 384,187 passengers, a reduction of 1.8%. While Reus airport (south Catalonia) saw passenger levels rise by 0.7% compared to July of 2012 with a total of 166,984.

Since 1986, the Catalan Government has its own lottery system, which brought a profit of €40 million last year. The Catalan lottery administration dedicates 60% of the revenue to prizes and the remaining 40% to finance public policies. In total, there are six lottery games, including scratch cards and lotto draws, but there are no specific draws for special days, as exists in the Spanish Government’s Christmas Lottery. After a proposal from representatives of shopkeepers’ associations, the Catalan Executive decided to launch a similar Christmas draw, with tickets worth 5 euros. 80% of the revenue will go towards prizes and 20% will finance children’s assistance programmes. €15 million will be put on sale. The opposition has been surprised by the initiative and stated they were hoping it was not the only measure to increase revenue.

According to data released by the Catalan Finance Ministry, the Catalan economy has stopped the fall in GDP during the second quarter of 2013, since it remained at the same rate of the previous quarter. There has been a slow strengthening of the Catalan economy over the last few months: the fourth quarter of 2012 saw a reduction of 0.7%, the first quarter of 2013 GDP only shrunk by 0.1% and during the second quarter it remained stable at 0% growth. The improvement has been due to the industrial sector, particularly thanks to the exportation of goods which made up for the sustained falling of domestic demand. However, compared to the same figures for last year, the Catalan economy decreased by 1.3%.

The President of the Catalan Government, Artur Mas, officially announced on Tuesday that last year’s budget will be extended for the whole of 2013, since the 1.58% deficit target imposed by the Spanish Executive is too low and arrives too late. However, he explained that the budget extension guidelines will meet the 1.58% deficit target, because otherwise they would not have the money to pay for the additional spending. Furthermore, Mas announced they will take the “unfair and illegal split” of the deficit targets among the different government levels to court, since they consider the Spanish Government has not done it “in a proportional way”, since it keeps most of the deficit allowed for Spain’s total public sector for itself. Some opposition parties have strongly criticised the Catalan Government for extending the budget.

The President of the Regulatory Council of Priorat wine appellation, located in south-western Catalonia, is anticipating an excellent grape harvest this summer as there have been no major setbacks that have affected the evolution of the vineyards. The hot and dry weather during August has led to a process of maturation that is very favourable in terms of colour and there is a good balance between alcohol and acidity. The President of the Regulatory Council of the word-famous wine region, Toni Alcover, expects there to be a high quality harvest with a quantity in excess of 5.5 million kilograms of grapes.