catalan way

Out of the 57.7 million foreign tourists who visited Spain last year, 25% of them went to Catalonia, which was the most visited destination. 14,447,814 foreign visitors travelled to Catalonia in 2012, a 9.9% increase compared to the 2011 figures. This figure is particularly relevant compared to the Spanish average: the total number of foreigners visiting Spain only increased by 2.7% last year. The largest market sending tourists to Catalonia continues to be France. Regarding the data for December, the number of foreign tourists visiting Catalonia only that month was 622,258 people, a 7% increase compared to data from December 2011.

If the Spanish Government had honoured its legal commitments and did not “centrifuge the deficit” towards the Autonomous Communities, the Catalan Government would have ended 2012 with a deficit of 1.53%, according to the Catalan Finance Minister, Andreu Mas-Colell. Instead, the Catalan Government had a deficit of 2.3%, 0.8 percentage points higher than the 1.5% deficit target. In any case, Catalonia’s deficit still decreased from 3.99% in 2011 to 2.3% last year, a reduction representing €3.48 billion, despite the recession, the consequent drop in tax collection and paying €1.72 billion in debt interest. In the last 2 years, the Catalan Government has reduced its expenditure by €4.2 billion, representing a daily reduction of €5.7 million.

The Barcelona-based brand, which is part of the Volkswagen group, had announced an 8.3% drop of car sales in 2012, compared to 2011, due to the recession in Spain, which is Seat’s main market. The increase of sales in foreign markets could not balance out last year’s results. In order to recover from this drop in sales, the company has decided to slow down the production of new cars and 400 workers are to be made redundant. Seat hired 600 temporary workers a few months ago due to positive results in 2011, two thirds of which will be laid off. The company will discuss its plans with the trade unions.

The 188th edition of the traditional ‘Tres Tombs’ animal parade, in honour of Saint Anthony the Abbot, took place in Barcelona last weekend. In Catalonia, he is the patron saint of the animals. The parade includes a blessing of pets ceremony. Traffic was stopped in the main streets of the Catalan capital’s Ciutat Vella district and in the Sant Antoni neighbourhood to give way to another kind of vehicles: donkeys, ponies, horses and old carriages. Although a popular festivity, this year’s 'Tres Tombs' couldn’t keep a hold on its audience as the cloudy morning became a very rainy day.

Trade unions refused to sign the Japanese company’s final offer to increase the competitiveness of Barcelona’s plant by reducing salaries and changing working conditions, so Nissan announced the end of the talks after 6 months of negotiation and meditation by the Catalan Government. Before Christmas, the Japanese company had already warned the unions that talks were coming to an end as the production of the new sedan car needed to be allocated. Back then Nissan presented a final offer, which has however been modified in the last few days. Once the agreement seemed to be imminent, Nissan floated the idea of a two-day reduction in holiday days, which the unions immediately rejected. Nissan warned that its Barcelona plant might now face “a slow-death scenario”.

Barça Manager has admitted that he was surprised by Víctor Valdés’ announcement today that he will not be extending his contract with FC Barcelona any further than June 30, 2014. However, Vilanova insisted that “he did not ask to leave, he just said he’s not renewing his contract”. Vilanova has confirmed that Valdés will continue to be the first choice keeper, saying that “as long as he is with us, he’ll be our goalkeeper and we have to help him as he would help us”.

The Catalan Josep ‘Pep’ Guardiola has reached an agreement with FC Bayern München to manage the football team as from next season until 2016. Finally, after rumours circulated pairing him with Manchester City and Chelsea, Guardiola has chosen the German club for its way of understanding football, which is much closer to the Catalan’s own approach based on attacking, playing nicely and working with home-grown players. Pep Guardiola quit FC Barcelona in June to take a year’s sabbatical, and moved to New York with his family. He will replace Jupp Heynckes, who is retiring at the end of the current season, in Munich.

The Spanish Government is keeping most of the 4.5% public deficit allowed to the entire Spanish public sector in 2013 for itself, despite managing only 50% of the total public spending. It has allowed itself a 3.8% deficit while it has imposed a 0.7% target on the regional governments, which manage almost 40% of the public spending including basic services such as healthcare and education. The European Parliament report indirectly asks Madrid to relax the Autonomous Communities’ deficit targets according to the basic services they provide. In addition, it also states that regional governments should have greater fiscal capacities and depend less on central government transfers. Furthermore, the report asks “some member states” to eliminate the ministries whose powers have been devolved and to “reduce unnecessary defence expenditures”.

The Constitutional Court has accepted the Spanish Government’s appeal against three measures adopted by the Catalan Executive to reduce its deficit, some of them negotiated last spring with the People’s Party (PP). The Spanish Government, which is run by the PP, now believes that these measures invade its own powers, “break market unity” and go against the principle of “equality for all Spaniards”. While accepting the appeal, the Court has temporarily suspended the application of the fees and taxes for a five-month period, which could be extended. The Catalan Government will appeal the decision as it believes the measures to be in line with the Constitution and within its jurisdiction. The drug prescription fee brought in €46 million in its first 6 months and it reduced public spending on medicines.

Combined with the salary reductions and the taxation increase, the rise in inflation means that Catalans have lost purchasing power. The spending of the average Catalan family increased by some 110 euros per month compared to 2011 in order to buy the same amount of goods and services, while the net revenue decreased. In the whole of Spain, the inflation rate for the last 12 months was 2.9%, affected by the VAT increase approved by the Spanish Government. In Catalonia, it was higher due to fees adopted by the Catalan Government in order to reduce the public deficit: namely those affecting drug prescriptions and university education.

Barcelona-based car manufacturer Seat, which is part of the Volkswagen Group, delivered 8.3% fewer cars in 2012 compared to the previous year. In total, it sold 321,000 vehicles, instead of the 350,000 units of 2011. The decrease is due to the drop in car sales in Spain because of the economic recession. However, Seat sold 22.5% more cars in Germany and 8.2% more vehicles in the UK. The Catalan car manufacturer also increased its sales in Mexico by 16.5%. Overall, the Volkswagen Group sold 9.07 million cars in 2012, an increase of 11.2%. The group obtained positive results in all markets except Southern Europe (-0.3%) and Western Europe – excluding Germany – (-6.5%).

The Catalan theatre company, famous for its idiosyncratic style, will unveil its own particular vision of the opera classic ‘Un ballo in maschera’ by Giuseppe Verdi in Australia, which will be performed from the 16th of January to the 12th of February. Then the troupe will move its show to Brussels, Oslo and Buenos Aires. The Catalan group, started in the late 1970s, is famous for other opera adaptations including Wagner’s ‘The Ring of the Nibelung’, Mozart’s ‘The Magic Flute’, George Enescu’s ‘Oedipe’ and György Ligeti’s ‘Le Grand Macabre’, all of them having toured worldwide. In fact, with the latest two titles and now ‘Un ballo in maschera’, La Fura dels Baus will be returning to Brussels’ La Monnaie Theatre for their third time in four years.

The Catalan bank has issued debt securities for €1 billion that attracted a demand of €3.4 billion. As other multinational companies such as CaixaBank and Gas Natural Fenosa did this week, Banc Sabadell is profiting from the lower spread in order to pay lower interest rates than they were a few months ago. The Catalan private bank has obtained a spread of 250 basis points over the midswap rate, which is a better interest rate than that obtained by the Spanish Treasury in its recent operations.

The series, produced by the Catalan Public Television Broadcaster and Filmax, has been exported to several countries and Steven Spielberg and Marta Kauffman are going to shoot a remake for the ABC network. ‘Polseres vermelles’ – which literally means ‘red bracelets’ in Catalan - describes the life of a group of six teenagers who live in a hospital as patients. It is based on the personal experiences of its creator, Albert Espinosa, who had cancer as a child. The first season was aired in 2011 and it became a huge success with audiences. The second season premiered on Thursday and will be broadcast as from Monday on TV3 at prime time.

The IDIBAPS has opened a new research centre of more than 5,000 m2, where more than 200 researchers split into 23 different research groups will be working. It will focus its work on oncology, neurosciences and cell therapies along with infectious, respiratory, cardiovascular and renal diseases. The new centre has been possible thanks to a donation by the private foundation CELLEX, sponsored by Pere Mir. The new centre is located within the University of Barcelona’s Faculty of Medicine, which is integrated into the prestigious Hospital Clínic. The centre consolidates Catalonia, and in particular Barcelona, as one of Europe’s main biomedical poles.