catalan

On Friday, the Spanish Government approved a €37.7 billion reform of Spain’s public sector which fosters the elimination of Autonomous Community bodies considered to be “redundant”. Instead of directly obliging the Autonomous Communities to eliminate them – which might be very tricky legally speaking, the Spanish Executive will link their suppression to the deficit targets allowed to the regional governments and the funds provided. However, in the case of Catalonia, most of the bodies included in the reform are recognised by Catalonia’s main law, approved in 2006 by the Spanish Parliament and through a binding referendum. The Catalan Government and most of the political parties are accusing the Spanish Executive of trying to recentralise Spain. In addition, the Catalan President said that unfortunately Madrid “teaches lessons” but “does not do its homework” and eliminates Ministries without competences.

According to an opinion poll from the Catalan Polling Centre (CEO), the Catalan political landscape would change, since the Left-Wing Catalan Independence Party (ERC) would would become the largest force in the Catalan Parliament after doubling the number of its MPs compared to the electoral results from last November. Meanwhile, the Centre-Right Catalan Nationalist Coalition (CiU), which has been running the Catalan Government since 2010, would continue to lose support. However, parties supporting Catalonia’s independence increase their total support while the number of those defending Spain’s unity drops. The CEO thinks the data show that over the last 9 months, the support for independence remains “stable” in a hypothetical referendum, ranging between 54% and 57%. However, those opposing independence grew from 20.7% to 23.4%, while the number of undecided citizens decreased to 15%.

Catalan companies exported goods and services worth €5.05 billion in April, which represents a 13.4% growth compared to the same month of 2012. In the first four months of 2013, Catalonia exported €19.17 billion, a 1% increase compared to the same period of the previous year. Looking at figures for the whole of Spain, exports reached €29.40 billion in April, an 18.6% increase compared to figures from April 2012. Regarding the volume of exports reached in the first four months of 2013, Spain exported 76.98 billion, a 7.5% increase compared to the same period last year. The chemical sector led Catalan exports, followed by capital goods and cars.

The Wealth Transfer Tax, which is levied on sales of second-hand housing units and any other used real estate, will be raised from 8% to 10% as from the 1st of August. The Catalan Government expects to earn an additional €50 million in 2013 and €150 million in 2014. The Catalan Finance Minister, Andreu Mas-Colell, argued that the rise in the tax rate is equivalent to the VAT charged on sales of new housing units and that both taxes should be “parallel”. He also added that other Autonomous Communities had previously raised this tax to similar levels.

The ice melting from the mountain tops and the heavy rain episodes of the last 24 hours have caused flooding of the Garonne, Noguera Pallaresa, Noguera de Cardós and other rivers in the mountain counties of the Val d’Aran, Pallars Sobirà, Alta Ribagorça and north of Pallars Jussà. More than 300 people have been evacuated from their homes in flooded or at risk areas. No victims or missing people have been reported, but material damage is considerable. Bridges have been swallowed by the waters and some roads have partially collapsed since the land beneath them has been swept away by the flood. Road access to the Val d’Aran County was closed as a precaution. Rain is expected to continue during the night and the reservoirs are overflowing because they have reached their maximum capacity.

Poor road conditions and a high rate of traffic accidents have led the Catalan Government to approve a strict circulation restriction for four axle lorries throughout 90 kilometers (56 miles) of the N-II, a road linking Madrid with Barcelona and the French border, which has only one lane per direction. Although the measure is of temporary character, it has outraged roadside shopkeepers and lorry drivers, but neighbors from towns close to the highly-frequented road totally support it. According to the Catalan Ministry for Public Works, now is the moment for the widening project of the road drawn up by the Spanish Government in 1995 to be restarted after years of delay due to a lack of funding in order to improve road conditions for the main entrance road to Spain from France.

According to the current legislation, the Spanish Government has to invest 18.9% of its total transport infrastructure budget in Catalonia between 2007 and 2013 in order to compensate for an historical lack of such investments. However, according to the Spanish Transport Ministry’s budget execution reports and the projections made by the Chamber, the Spanish Government is far from honouring this legal obligation. Not only have investments in Catalonia not increased in relative terms, but they have been reduced to a “historical minimum”. While the planned budget for transport investments has been reduced by an average of 36% throughout Spain due to the economic crisis, in Catalonia it has dropped by 50%. Furthermore, 87% of the planned budget was executed throughout Spain, while in Catalonia Madrid only executed 68% of it.

On Thursday, the Catalan Government published the new legal project for the area where ‘BCN World’ will be built, in order to modify the existing town-planning project and other rules. In addition, it will also modify the current taxes on gambling, dropping them from a maximum rate of 55% to 10%. The modification of such taxes was one of the changes the Catalan Government had promised international investors in order to develop the mega resort, which will see the construction of 6 casinos and hotels the size of those in Las Vegas. In addition, the resort will have golf courses, a beach club, a marina, a smart residential city area, shopping centres, theatres, conference centres and other attractions. Two weeks ago, the first three international investors participating in the project were announced. Plans are to start construction of the first casino in September.

The new facilities are the second longest building in the Catalan capital, as it is 186 metres long. Desigual’s new headquarters are located on prime real estate, just in front of Barceloneta beach and next to the W Hotel. They will initially host 840 employees but at a later stage they will host up to 1,500 people. The building is split into 6 storeys and occupies 24,400 square metres. According to Desigual’s President, Thomas Meyer, the building is inspired by the retail company’s values such as “positivity, respect, compromise and constant improvement”. The President of the Catalan Government, Artur Mas, attended the unveiling event and praised Desigual for combining the “informality” of its clothing style with the “seriousness” of a company with shops in more than 100 countries.

The British Prime Minister David Cameron answered a question referring to Scotland’s self-determination process and he indirectly compared it to Catalonia’s situation. He stated that he “doesn’t believe” that trying “to ignore these questions of nationality, independence, identity” is the right way. Cameron thinks “it’s right to make your arguments, take them on and then you let the people decide”. However, without being asked about it, he linked it to the Catalan case by adding he “would never presume to tell people in Spain how to meet these challenges themselves”. He concluded by saying that “it’s a matter for the Spanish Government and the Spanish Prime Minister” to decide how to handle the situation.

An exhibition, with documents dating from between the 10th century and 1493, displays the oldest preserved copy of the ‘Capitulations of Santa Fe’. This agreement was signed by the Catholic Kings in April 1492 and accepted Christopher Columbus’ terms to undertake the trip after which Europeans would become aware of the Americas. The document granted Columbus the titles of Admiral, Viceroy and Governor-General of all the lands he would discover and set that he would keep a tenth of all future profits. The copy dates from 1493 and it is only rarely on display. It has been kept in the Archives of the Aragon Crown in Barcelona and now is on show along with 42 other documents showing the symbolic conception of travelling in the Middle Ages.

Artur Mas, President of the Catalan Government, presented the Government Plan for 2013-2016 on Tuesday, emphasising that he aims to complete the four-year office term regardless of whether Catalonia’s self-determination vote is finally held in 2014, as the governing Centre-Right Catalan Nationalist Coalition (CiU) planned with the Left-Wing Catalan Independence Party (ERC). With the Plan, Mas has set 77 objectives in seven different areas, aiming to reaffirm political leadership and show the Catalan Government’s actions in a wide range of areas such as economic recovery, job creation, public services, environment protection, etc. Mas also asked the ERC and the Catalan Socialists (PSC) to sit in the Catalan Government. All the opposition parties except the ERC criticised the Plan.

In an interview with ACN, the Head of the EU Foreign Policy Unit of the Centre for European Policy Studies (CEPS), Steven Blockmans argued that “the European Union or the United Nations could play this role” if “both parties, including Madrid, voluntarily accept it”. Besides, Blockmans explained that Catalonia’s and Scotland’s self-determination processes and the possibility that they become independent states “is being debated” in Brussels circles, and it is even mentioned “often”. In addition, he also stated that if Madrid agrees, “a summit would be enough” to take “the political decision” to allow an independent Catalonia to become an EU Member State.

The Catalan company, which is the main bank operating in the Spanish market, will sell half of its shares in the Mexican GFI, the financial group owned by the billionaire Carlos Slim. Caixabank currently controls 20% of the GFI shares. The Catalan bank has confirmed it will sell 3.7% of GF Inbursa to Inmobiliaria Carso, which is also owned by the Slim family, for €387 million, corresponding to 250 million shares. With this operation, Caixabank will earn a capital gain of €33 million. Besides, the Catalan bank aims to sell another 6.4% of GIF shares to institutional and retail investors from Mexico and international markets. After completing both sales, Caixabank will control between 9% and 9.9% of GFI.

The Royal Melbourne Institute of Technology, which is one of Australia’s main universities, will offer Master and PhD programmes in Barcelona. The RMIT University, which has three campuses in Melbourne and two in Vietnam, is now coming to Europe and will coordinate its activities in the continent from Barcelona. The Australian education institution will also cooperate with several Catalan universities, in particular the UPC, the UPF and ELISAVA. The Catalan Minister for Economy and Knowledge, Andreu Mas-Colell, attended the opening ceremony. He underlined that Australia’s higher education system is “the most internationalised in the world”. He also stated that the RMIT campus in Barcelona “is a bridge towards Europe, the Mediterranean Area and Latin America”.