catalan

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.

The operation has rocketed CaixaBank shares in the Spanish stock exchange market, which increased by 11.75% in just one day. The Catalan CaixaBank, which is the largest bank in Spain, successfully issued €1 billion in 3-year senior bonds. The operation has attracted more than 300 orders from institutional investors, representing around €5 billion, which has allowed the Barcelona-based bank to sell its bonds at a better price thanks to the significant oversubscription. 80% of the bonds issued were placed among international investors, confirming the positive recognition CaixaBank has in international financial markets. It was the first time their senior bonds have been issued on the international markets since 2010.

The Catalan Government has created a Treasury Secretariat within its Finance Ministry, which will be in charge of managing revenue, with the objective of developing Catalonia’s own tax office. The creation of a treasury of its own would allow the Catalan Executive to collect all the taxes generated in Catalonia, as Navarra and the Basque Country have been doing for decades. It is one of the electoral promises of the governing Centre-Right Catalan Nationalist Coalition (CiU) and is also part of the parliamentary stability agreement reached with the Left-Wing Catalan Independence Party (ERC). A Catalan tax office collecting all the taxes is an historical claim of a large part of the Catalan society. However the Secretariat created is in line with the CiU’s strategy of creating state structures and it has been criticised by the pro-Spanish unity parties.

The Spanish Government has finally finished the construction work and circulation tests on the last 131-kilometre stretch of railroad to France. Barcelona, Girona and Figueres are now linked by High Speed Train, although a direct connection between the Catalan capital and France will have to wait until next April. Now, passengers can travel from Barcelona to Girona in only 37 minutes and to Figueres in a total of 53 minutes. If they want to continue to France, they will have to switch trains until April, when the Spanish trains will be standardised to be able to run in France. However, from now on, the Spanish and the French High Speed railway networks will finally be connected, twenty years after the Madrid-Seville line was unveiled. The Catalan President has emphasised that Catalonia is the Autonomous Community with the smallest amount of public infrastructures in Spain.

‘Blancanieves’ with 12 nominations and ‘El Bosc’ with 11 are leading the race at this year’s Gaudí awards ceremony. They are followed by ‘Els nens salvatges’ and ‘Fènix 11-23’, who are also candidates for the Best Film in Catalan. The Premis Gaudí are organised by the Catalan Cinema Academy and they recognise Catalan productions or movies with a significant presence of Catalan artistic and technical staff. They also award a prize for European productions. Out of the 89 films in the competition, 30 have received one or several nominations, becoming candidates to receive one of the 22 awards. ‘The Impossible’, ‘In The House’, ‘Le Havre’ and ‘The Intouchables’ are candidates for the Best European Movie.

All towns in Catalonia welcome the arrival of the Three Wise Men on the 5th of January. Children and parents gather on the streets throughout the country to greet the Kings from the East in an enormous display of colour, sweets and presents that cannot fail to delight everyone. The Three Wise Men often travel by camel, but they have also been known to visit some towns using floats, classic cars, boats or even helicopters! Catalan children are very excited that night, because this is the “magical night” on which they traditionally receive their big Christmas presents – although some also get presents from other magic figures such as Santa or the very Catalan tradition of the ‘caga tió’ on the 24th of December.

Civil society and politicians joined the family of the doctor, who was 104 years old, at his funeral in Barcelona. Moisès Broggi died on the last day of 2012 at his home in Barcelona. He was renowned for his work as a surgeon and doctor during the Spanish Civil War (1936-1939) -and afterwards. During the war, he was head surgeon of the International Brigades that fought against Franco, and he developed several important medical innovations. Despite being 104 years old, he kept up a very busy social and political life, running as candidate for the Senate for the left-wing Pro-Independence Party Esquerra Republicana (ERC) and participating in several conferences and events. Catalan President Artur Mas paid tribute to the doctor, saying that Catalans should “follow his example”.

On the 5th of December, the Catalan Executive allocated the tender to privatise the public companies Tabasa and Túnels del Cadí to the joint venture formed by Invicat (owned by Abertis) and the investment bank BTG Pactual. On Friday, the deal was completed and the Catalan Government earned €309.6 million, representing 72% of the total of the €430 million operation. In addition, the two public companies will effectively disappear. The concession will last for the next 25 years and the Catalan Government will continue to own the infrastructures but it will transfer the management and exploitation. The operation includes the tolls at the Vallvidrera highway tunnels accessing Barcelona and the Cadí tunnel, at Cerdanya County, in the Pyrenees.