catalan way

The Spanish Government has presented its project to approve an External Action Law aiming to “centralise services” and to have the Autonomous Communities’ external action “coordinated and subordinated” to the principles and objectives of the Spanish Foreign Affairs Ministry. The Spanish Foreign Affairs Minister, José Manuel García-Margallo, has “invited” the Autonomous Communities to integrate their teams into those of the Spanish embassies. However, he also recognised that many Spanish embassies and consulates lack business services to assist companies and attract foreign investment. The Catalan Government’s offices abroad are mostly focused on these economic objectives.

The President of the Catalan Government, Artur Mas, accused the Spanish Government of “not having the true will to talk” about Catalonia’s self-determination claims, backed by democratically-expressed ballots. After the weekly Cabinet Meeting, the Deputy Prime Minister, Soraya Sáenz de Santamaría, confirmed that the Spanish Government will take the Catalan Parliament’s declaration, which states that the Catalan people are sovereign to freely and democratically decide on their collective future and therefore organise a self-determination vote, to the Constitutional Court. The Spanish Government justified its decision by stating that the declaration – with no direct legal impact – might have legal consequences and wants the Court to “clarify that the Catalan people are not sovereign”.

Catalan companies at the Mobile World Congress increased their presence in the international event by 40% in comparison with 2012. 56 companies were supported by the Catalan Government, which grouped 48 of them together under the Catalonia Stand. They also introduced to the technologic market new apps in different fields and closed deals with other international companies. Most of them are formed by small teams of young entrepreneurs who were looking for venture capital and were making contacts with international businesses to launch their latest technological projects.

The Catalan Government has reduced its deficit by half over the last year, dropping from a 4.02% figure to a deficit of only 1.96%. However, despite the significant reduction, the figure is still above the 1.5% target unilaterally imposed by the Spanish Government. The Catalan Executive had been warning the Spanish Government that a 1.5% target was not realistic, as it did not relate to its spending responsibilities managing the basic Welfare State services. The Autonomous Communities had a total deficit of 1.73%. Spain as a whole ended 2012 with a 6.74% deficit, according to the Spanish Finance Ministry, over the 6.3% target imposed by Brussels. The Spanish Government posted a final deficit of 3.83%; Social Security – managed by the Spanish Government – had a 0.96% deficit and local governments a deficit of 0.2%. Barcelona City Council ended up with a budget surplus of €117 million.

Vueling earned a net profit of €28.3 million in 2012, almost three times more than the €10.3 million of 2011. It transported 14.8 million passengers, 20.1% more than in the previous year, with an occupancy rate of 77.7%. The Barcelona-based airline continues with its international expansion, especially in Western Europe, and it has become the third largest airline in Paris-Orly and Roma-Fiumicino. It also increased the passenger traffic share it controls in Barcelona El Prat Airport by up to 30%. The total revenue reached €1.103 billion last year, 27.7% more than in 2011. Vueling occupied part of the market share left by Spanair in Barcelona. Besides. the Spanish Stock Market Authority has authorised IAG’s take-over operation of Vueling, aiming to take total control of the Catalan company.

For the first time since 1982, the Catalan Socialist Party (PSC) has voted differently to the Spanish Socialist Party (PSOE), to which is federated. The PSOE is opposing Catalonia’s self-determination right and voted against the petitions urging the Spanish Government to engage in talks with the Catalan Executive in order to allow the organisation of a self-determination referendum in Catalonia. The Catalan Socialists oppose Catalonia’s independence from Spain but they back Catalonia’s right to self-determination and thus they supported the petitions. As an anecdote, the PSC MP Carme Chacón refused to back the petitions, as she is in the running as a candidate to lead the PSOE. The petitions were finally rejected by 78% of the Spanish Parliament, mostly from the People’s Party – which runs the Spanish Government and holds an absolute majority in the Chamber – and the PSOE, apart from the PSC.

The Spanish Supreme Court has rejected an appeal presented by one family against the Catalan Supreme Court’s decision adopted in March last year that validated the current public school model of linguistic immersion. The Spanish Supreme Court has stated that the Catalan Government does not have to change the entire Catalan school model, which has been in place since the early 1980s. However, it does have to consider individual petitions from families wanting to school their children in Spanish and make Spanish the language of instruction “in the proportion that the Catalan Government considers to be convenient” in “the school and class in which the offspring of the petitioner is being taught”.

The 17th edition of the International Animated Movie Exhibition of Catalonia, Animac, will take place once again in the Catalan city of Lleida, in western Catalonia. From the 28th of February to the 3rd of March, Lleida will become the capital city of international animated cinema once again, playing host to a large number of conferences, presentations, workshops and related activities about this entertainment industry. The exhibition’s program was announced in Barcelona at the CCCB, where the documentary maker Hanna Heilborn was invited to talk about her anti-slavery work ‘Slavar’. More than one hundred movies will be shown over five days in Lleida’s Animac.

The Barcelona-based bank, CaixaBank, which leads the Spanish retail banking market, is planning to lay off 3,000 workers in order “to adapt to the current context” and “improve the efficiency” of its resources. According to the Catalan financial company, the reform is “necessary” after having taken over Banca Cívica’s network and as they absorbing Banc de València’s too. CaixaBank has engaged in formal talks with the unions, which could be on-going until late April. The objective is to negotiate the exact measures to adjust the staff numbers to the business volume.

After holding the second high-level meeting with top representatives from all the public powers involved in the fight against corruption and fraud in Catalonia, the Catalan President, Artur Mas, presented a document setting out a list of measures. The document takes into account suggestions and comments by all the attending public powers, but it is not a joint text issued by all the participants, Mas emphasised, as it is only signed by the President of the Catalan Government. An initial meeting was organised on the 6th of February to exchange views and gather ideas. The listed measures relate to transparency, public contracts, judicial capacities, political parties, control bodies and democratic regeneration.

The latest political poll issued by the Catalan Survey Centre (CEO), published every three months, shows that 54.7% of those interviewed would vote “yes” in an independence referendum, while 20.7% would vote “no” and 17.0% would abstain. Three months ago, the “yes” option was backed by 57% of the interviewees while in February 2012 it was only backed by 44%. Besides, 46.4% of citizens would support an independent Catalan state as their first choice, which represents an increase of 2.1 percentage points in three months and a 17.4 point increase in one year. 22.4% would prefer a federal Spain, 20.7% the current situation and 4.4% Catalonia being a region within a more centralised Spain.

A month ago, the Catalan Government issued a preliminary deficit figure for last year of 2.3%. Now, the Catalan Finance Minister, Andreu Mas-Colell, has corrected this and issued “a more precise figure, although not definitive yet”, which represents having undertaken an adjustment of €3.3 billion in a single year. The Catalan Government was supposed to meet a deficit target of 1.5% in 2012, a figure imposed by the Spanish Executive and considered too strict by Mas-Colell, since it is not proportional to the Catalan Executive’s share of public spending. For 2013, the Spanish Government is imposing an even stricter 0.7% deficit target. Mas-Colell has been repeating that it is “irrational” and needs to be changed.

The highway, airport and telecommunication services management company earned a net profit of €1,024 million in 2012, 42% more than in the previous year, mainly thanks to the sales of Eutelsat and Brisa. The net profit without the surplus value reached €613 million, 2% more than in 2011. The Barcelona-based group presented better results in all of its main financials: revenues increased by 3%, recurrent earning before interest, taxes, depreciation and amortization (EBITDA) by 2%. Abertis emphasised that these results have been reached in a context of economic recession in some of its main markets. However, the traffic increase in the Americas (+4.5%) and Abertis’ efficiency plans compensated for the traffic decrease in southern Europe.

The Catalan energy multinational’s earnings before interest, taxes, depreciation and amortization (EBITDA) reached €5.08 billion, 9.4% more than in 2011, thanks to its international business, which grew by 22.6% and balanced out the stagnation in the Spanish market. In fact, Gas Natural Fenosa’s business in Spain now only accounts for 56.8% of its gross profits, while in 2011 this represented 61.5%. Furthermore, the firm’s financial debt decreased by 7.5% and now the company’s financial debt/EBITDA ration is 3.1. With these results, the Barcelona-based company has fulfilled the objectives of its strategic plan up until 2012.

The Catalan company Abertis, which owns 90% of Sabsa, denies the accusation stated by the President of Bolivia, Evo Morales, that they made a poor investment. Abertis emphasised that between 2005 and 2012, Sabsa invested $12.6 million, and paid $38.6 million to hold the airports and $9.4 million in taxes. However, Abertis accepts the nationalisation of its subsidiary company, which manages the international airports of La Paz, Santa Cruz and Cochabamba. Two other Spanish companies have been nationalised by Morales in the last 10 months. The Barcelona-based multinational believes that the nationalisation process will be “based on international law” and therefore it will receive fair compensation. On Monday, Morales announced the immediate nationalisation of Sabsa. The Spanish Government will review its relations with Bolivia.