catalan way

The Catalan Government will allow universal access to community health centres, despite the Spanish Government’s decision. Autonomous Communities are those managing the public healthcare system. After announcing that immigrants would not be able to access the service without contributing to the Social Security system, the Spanish Government is now preparing formulas allowing them to continue accessing the public healthcare system if they pay the fee. The Spanish Health, Social Services and Equality has confirmed that foreign people less than 65 years old will pay €710 per year and those older will pay €1,860. Access will be free in emergencies as well as for pregnant women and minors.

The Catalan economy remains in recession and decreased by 1.1% compared to last year. Although tourism and the foreign sectors have seen an increase, internal demand has been reduced, decreasing business in the industrial, construction and services sectors. The number of foreign tourists increased by 12.3% and tourist spending increased by 14.3%. In both cases, the percentages are much higher than the figures for Spain as a whole (2.9% and 5.6% respectively).

The Spanish Prime Minister, Mariano Rajoy, has announced further budget cuts for 2013 and 2014, totalling an additional €89.1 billion. These budget cuts are to be added to those implemented between 2010 and 2012. Autonomous Communities will have to cut their budget by an additional €19 billion in 2013 and 2014, which is added to the €15 billion already announced in Spring affecting education and healthcare. However, no details of the €19 billion plan were provided. Rajoy stated that in 2014 the Spanish economy will grow by 1.2%, leaving the recession behind. With this plan, Spain’s public deficit for 2013 will be set at 4.5% and at 2.8% for 2014.

The Catalan Social Affairs Minister, Josep Lluís Cleries, stated before the Catalan Parliament that €70 million had not been paid on time to health and social care organisations this August. He said he was sorry for the situation but underlined that the €50 million destined for private citizens had been paid. The Catalan Finance Minister, Andreu Mas-Colell, emphasised that, if the Spanish Government does not activate the Liquidity Fund for the Autonomous Communities and similar measures, he cannot guarantee the situation will not be repeated in the future. However, he said to be confident the Spanish Government will put these mechanisms in place soon. The Left-Wing opposition parties had requested the urgent hearings.

Unemployment dropped in July by 784 people, which represents a 0.13% decrease compared to a month ago. It is the fifth consecutive month that the number of unemployed people has decreased in Catalonia, reaching 614,792 jobseekers. In the whole of Spain, unemployment decreased for the fourth month in a row, dropping by 0.6%. Long term unemployment and youth unemployment have decreased in Catalonia. However, compared to 12 months ago, general unemployment has increased by 7.8%. In addition, the number of indefinite new contracts dropped by 1.3% compared to a year ago.

Firefighters from Catalonia will be sharing their knowledge and experience of different types of fire. Catalan firefighters have experience with various kinds of fire because of Catalonia’s geographic diversity. The organisers of the bespoke courses designed for the varied conditions in Ireland, France and Wales, have stated that the accumulated experience “should not just remain in Catalonia but be taught internationally”.

The Catalan Minister for Territory and Sustainability, Lluís Recoder, has emphasised that “not attending a meeting as a protest does not mean not honouring the agreements”. Recoder was answering the Spanish Finance Minister, Cristóbal Montoro, who emphasised that all the Autonomies are obliged to meet the deficit and debt targets. Recoder said that Montoro’s words were not appropriate and unfair, since Catalonia has been leading austerity reforms and budget cuts in Spain.

Catalan filmmaker David Victori’s short film has passed a rigorous selection process and will be shown at the Venice Film Festival. His submission, ‘La Culpa’ which deals with the emotions of guilt and revenge, participated in ‘Your Film Festival’ that is organised by Youtube. Victori’s submission is one of the ten short-listed, out of 15,000 original entries. The winner will receive a prize of $500,000 for the production of a short film.

Catalonia’s Executive blames the Spanish Government for not having transferred all this month’s economic resources and creating serious financial problems for the Autonomies, compelled to pay other financial obligations first. Social care organisations state that the service is guaranteed but that some employees might not receive their salary in time. In addition, despite that they are looking for solutions with the Catalan Government, they criticise the bad planning and are having to look for last minute solutions. Catalonia’s opposition parties have forced the Catalan Finance and Social Affairs Ministers to explain the situation to the Catalan Parliament.

The Catalan airline Vueling, based in Barcelona, increased by 16.2% the number of flights compared to a year ago. The airline has defied the Spanish market trend with an increase in its global volume of passengers by nearly 19%. Vueling attributes this increase to a growth in the company’s activity and a rise in its flight occupation rate, which reached 75.5%.

Andalusia quits the meeting after one hour. For the first time in democracy, the Catalan Finance Minister did not attend the Fiscal and Financial Policy Council (CPFF), where the Autonomous Community governments and the Spanish Executive discuss the regions’ financial situation and funding. Catalonia refused to attend the CPFF as decisions were taken beforehand by the People’s Party, which runs the Spanish Government and most of the Autonomies for which CPFF decisions are binding. In addition, the Catalan Finance Minister refused to attend the meeting due to Spanish Government’s unilateral decision to oblige the Autonomies to meet a stricter deficit target in 2013, passing from the planned 1.1% to 0.7%. He sent a letter asking for the same flexibility the European Union is giving to Spain.

According to the Barcelona Chamber of Commerce, if Catalonia continued contributing to Spain’s fiscal redistribution scheme but it did so to a lesser extent, Catalan public finances would have no deficit and Catalonia’s public debt would be much smaller. The Chamber reminded that Catalonia is giving 8.6% of its GDP each year to the rest of Spain in terms of solidarity, an amount that has no other equivalent in Europe. In addition, the Chamber emphasised that this contribution is “excessive” as basic services and infrastructures in Catalonia are not properly funded.

The Catalan pharmaceutical company Grifols, the third world leader in the production of blood plasma based technologies, has seen its turnover increase by 15% in the first half of 2012 to €1.32 billion. Its net profit for the first half of 2012 was €133.5 million, seven times that of the previous year. The company’s success is attributed to its wide geographical consumer base and the recent purchase of US based Talecris Plasma Resources.

Catalan political parties, business associations, and many citizens are outraged by the decision to increase toll prices in Catalonia, while in the rest of Spain there are many toll-free highways. The Catalan Transport Minister asked the Spanish Government to implement a “soft toll” throughout Spain, instead of increasing toll prices in Catalonia. He reminded that for some journeys within Catalonia, there are no free of charge alternatives to the tolled highways. Catalan nationalists see this measure as a new proof of Catalonia’s high fiscal deficit, paying much more to the rest of Spain than what it gets in return. The People’s Party (PP), running the Spanish Executive, asked the Catalan Government to reduce the price of its tolls.

Catalan Parliament approved on Wednesday the proposal for a new fiscal pact for Catalonia by an overall majority. The proposal defends the creation of an independent tax agency with powers to raise and manage all taxes in Catalonia. According to the Catalan President, Artur Mas, it involves starting a “difficult” negotiation with the government of Spain but it was either “now or never”. If achieved, this new fiscal arrangement would be similar to the one enjoyed by the Basque Country, that collects its own taxes and has been able to keep its debt under control. Therefore, it could help Catalonia getting out of the crisis. Currently, out of the all the territories, Catalonia is ranked third for the amount it pays in taxes, but is ranked tenth for the amount it receives in return. The new arrangement would see Catalonia leaving the common system established by the Organic Law on the Financing of the Autonomous Communities (LOFCA) and establishing bilateral fiscal relationships with Spain.