catalan

The Catalan President states that, “if the Constitution is always interpreted from a centralist point of view”, “Catalonia will have to quietly and democratically reflect on its own future” as “no legal framework can be eternally used to annul the majority, democratic, and peaceful will of a people”. The Catalan President, Artur Mas, and the Spanish Prime Minister, Mariano Rajoy, met in Madrid 9 days after the 1.5 million strong demonstration for Catalonia’s independence. Rajoy categorically refused to negotiate a specific fiscal agreement between Catalonia and Spain because he said it does not fit into the Constitution. No one from the Spanish Government addressed the press after the meeting.

The Catalan Government has confirmed that Ryanair will route its flights through Reus Airport, next to Tarragona and the Costa Daurada, during the winter season. It will link the Catalan airport with 7 European destinations, with a frequency of 21 rotations per week. It is expected that 100,000 passengers will be transported. Last year, the Irish low-cost airline cancelled all its flights operated through Reus in winter time and was only present during the summer season.

As part of the strategy to create state structures and to get a new fiscal agreement between Catalonia and Spain, the Catalan Government and the four Provincial Councils, all run by the Centre-Right Catalan Nationalist Coalition (CiU), have created the embryo of Catalonia’s Treasury. They will merge exiting structures, in terms of facilities, staff and resources, to create a single body to collect all taxes at local and Catalan level at no extra cost. The pillar for the future Catalan Treasury’s formal birth ceremony comes the day before the crucial meeting between Catalonia’s President, Artur Mas, and the Spanish Prime Minister, Mariano Rajoy. Rajoy has already said he will not accept a specific fiscal agreement for Catalonia.

The Catalan Government approved a simplification of the red tape businesses need to get through by unifying all the public institution windows in a single point of contact and by rationalising procedures and certificates. By 2014 it is expected that 20% of the administrative procedures will be eliminated and 68% will simplified, involving procedures at local, Catalan and Spanish level. The measure will represent a €640 million saving for companies, according to the Catalan Government.

In a very unusual movement, Juan Carlos I has issued a short but clear letter one week after the massive demonstration for Catalonia’s independence. The King emphasised the need to remain “united” and asked the people to retake the “values” of the “Democratic Transition”, such as “dialogue” and “the sacrifice of particular interests for the general good”. The Catalan Government does not feel “concerned” by the King’s letter. However, it states that Catalonia “offers solutions” and “does not chase pipe dreams”. Spanish nationalists celebrate the King’s words while PM Mariano Rajoy still remains silent. Catalan and Basque nationalists criticise the King for taking sides and not emphasising values such as “pluralism, diversity, tolerance, and respect for discrepancies”.

The Catalan Socialist Party (PSC) is against independence but supports claims for greater self-government and fiscal autonomy for Catalonia. The PSC’s Secretary General, Pere Navarro, proposes a “preferential bilateral relationship” between Catalonia and the Spanish Government, within an “asymmetrical” federal Spain. However, the Spanish Socialist Party (PSOE), which is formed by federated territorial parties such as the PSC, seems to evade the question, at least for the time being. The PSOE’s Secretary General visited Catalonia for the first time after the 1.5 million strong demonstration for independence and did not mention the word “federalism” a single time.

The Autonomous Communities are responsible for 18.7% of Spain’s global public debt, while they manage around 40% of the country’s public spending. The Spanish Government’s share represents 76.8% of Spain’s global debt, which reached €804.39 billion at the end of June. Spain’s debt is now 75.9% of the GDP. The Catalan Government has a debt of €43.95 billion. The day before, the Spanish Finance Minister announced that the Catalan Government had a 0.59% deficit for the first half of 2012. Furthermore, Catalonia suffers from a structural fiscal deficit due to Spain’s fiscal redistribution scheme, which annually takes away 8.5% of its GDP, a €17 billion annual solidarity contribution.

Three days after the 1.5 million strong demonstration for Catalonia’s independence, partially fuelled by the Spanish nationalism’s recentralisation attempts and the lack of respect to Catalonia’s self-government, language and culture, the Spanish Government is about to approve a reduction in Catalonia’s share in the definition of the school curriculum. Furthermore, the Spanish Education Minister wants to establish “homogenous evaluations” throughout Spain, although the Catalan Government exclusively manages such evaluations, as well as the school facilities and staff.

By the end of the year, Catalonia must meet a 1.5% deficit target. According to the Spanish Finance Minister, Cristóbal Montoro, the Autonomous Community governments are heading “in the right direction” to honour the deficit objective for 2012. The Catalan Government had a 0.38% deficit at the end of July, according to its own sources. This represents a €767 million deficit, while at the end of July 2011 it had a 2.09 billion deficit, which represents a 63% deficit reduction.

At a conference in Madrid, the President of the Catalan Government, Artur Mas, warned Spain about the “great mistake” of downplaying the massive demonstration for independence. No members of the Spanish Government or leaders of the Socialist Party (PSOE) attended the event, which is unusual. In front of a crowded audience with many foreign press, Catalan MPs and businesspeople, Mas explained that Catalonia “has been trying for decades to reform Spain to make it our state”. However, Catalans are now “tired” from “the lack of respect” and the “disloyalty”. “If Spain denies the fact of Catalonia being a nation”, “many issues will not be solved”. Then “it is logical for a people to solve their future “peacefully, democratically and in a strictly European way”.

The Mayor of Barcelona welcomed the company’s investments and commitment to efficiency at the Port of Barcelona. The Catalan harbour is significantly increasing its container traffic in the last few years. Barcelona’s Port aims to become the main logistical hub in Southern Europe, using the international standard rail gauge to directly connect to Central Europe and new freight terminals. The Catalan company TCB is expanding its freight railway station and its power substation, as well as enlarging the ship docking space. The improvements will increase the maximum number of shipping containers transported by TCB from 0.9 million to 2.3 million by the end of 2013.

“Listen, and listen carefully. Do not get angry if you don’t like what you see. And put solutions on the table, if you have them”, the President of the Catalan Government, Artur Mas told Spain the day after the 1.5 million strong demonstration for Catalonia’s independence. He also stated he will work to create “state structures”. The Spanish Government refused to comment directly on the event, stating it should be analysed “coldly”. However, it said Spain and Catalonia should have other priorities.

150 million bottles of Catalan Cava were exported last year. It is a historic record for Cava producers with Germany and the United Kingdom being the main importers. The Catalan sparkling wine has the perception of being inexpensive in these countries, which has worked to the Cava producers’ advantage at a time of economic crisis as demand for alternatives increases. Wine connoisseurs put high quality Cava on the same level as Champagne, yet many consumers still associate the Catalan drink with a cheap product. High quality Cava is starting to be discovered and has strong potential to grow in these markets.

In the largest demonstration Barcelona has ever seen, 1.5 million citizens according to the Catalan Police marched in Catalonia’s capital after the banner “Catalonia, Europe’s new state”. The Spanish Government reported a reduced number of 600,000 participants while organisers talked of 2 million participants. The Catalan President did not attend it because of his institutional position, but gave his support at a personal level. Most of the Catalan Government was present. Members from most of the Catalan political parties were also present, including the Socialists (PSC) but at a personal level. The only absentees were representatives from the People’s Party (PP) and anti-Catalan nationalism ‘Ciutadans’ (C’s). Many families gathered for the demonstration which ended with the petition to start the secession process.

However, the Commission also clarified Barroso’s words from late August. A Commission Spokesman said hours before the kick off of the independence demonstration that in the case of secession from Spain, Catalonia would no longer be part of the EU. A negotiation process to join the EU would be required. However, other EU sources stated that the hypothetical new state may have the same benefits of a “transitional” member. They also added that the accession process would be “faster and easier”. Catalan citizens have been net contributors to the EU for decades and are currently considered European Citizens, but this is “additional”, according to Barroso.