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The Catalan Government stated it will meet the 1.5% deficit target for the Autonomies, although it considers it to be abusive considering they manage the main public services and the Spanish Government has kept for itself all the flexibility allowed by Brussels. In addition, the Catalan Government and the Catalan economy suffer from a perpetual lack of investment by the Spanish Government, which takes away 8.5% of Catalonia’s GDP each year, a quantity much higher than the deficit target. The day after Catalonia’s request for €5 billion from the Liquidity Fund, there was no recognition of Catalonia’s fiscal deficit at a Spanish or European level. There were only calls to continue with the austerity efforts. However, the Catalan Government warns of a “serious problem” if the Liquidity Fund is not in place on time by September.

Catalonia and the Balearic Islands opened their own pavilion and exhibition at the 13th Architecture Biennale in Venice on Monday. They are participating in the ‘Collateral Events’ alongside the official programme. The exhibit shows the work of 9 young Catalan and Baleric architects, focusing on an architecture with a greater human dimension.

The Spokesperson for the Catalan Government emphasised the money requested comes from Catalan taxpayers, since Catalonia pays €17 billion each year for services and investments in the rest of Spain. Nonetheless, the Catalan Executive stated it will meet the deficit targets and will follow the already approved austerity plan. The Spanish PM and leader of the People’s Party (PP) confirms it will “help Catalonia as we help the other Autonomous Communities”. However, the PP Spokesperson in Catalonia said the Catalan Government will have to accept whatever the conditions are. The Catalan Socialists want to know what the €5 billion will be spent on before supporting the decision. The Catalan Independence parties criticised the decision for having given away Catalonia’s autonomy.

Answering a letter from the Catalan President, the Spanish Prime Minister, Mariano Rajoy, stated he would study the proposal voted by the Catalan Parliament which aims to reduce the solidarity contribution from Catalonia to the rest of Spain and have all taxes raised by a Catalan-run agency. However, Rajoy had previously stated this issue was out of discussion, especially in the current economic context. A vast majority of the Catalan Parliament considers that it is precisely due to the financial stress provoked by the crisis that it is urgent to debate the excessive transfer of revenues from Catalonia to the rest of Spain. The Spanish PM also stated he has agreed to meet with the Catalan President to discuss this proposal, but he expects to talk about many other issues.

Catalonia’s Forest Technology Centre has cited that the lack of rain, high temperatures and the wind have slowed down the growth of mushrooms in the Pyrenees. The centre’s mathematical models expect the yields to be lower than in previous years and long term forecasts predict a lack of rain in autumn, which will also cause the yield of mushrooms to be less than average.

Compared to a year ago, the Catalan Healthcare System spent 24.6% less last July than in the same month of 2011. In July 2011, Catalonia spent €143.52 million on pharmaceutical products while it spent €108.10 million last month, when the drug prescription fee began and citizens started to pay a greater share of the cost of prescription drugs. Furthermore, drug prescriptions fell by 20%. In the whole of Spain, pharmaceutical spending also decreased by 24% last July, compared to a year ago.

The new city government is considering the continuation of a project started by the last Mayor. The venture proposed by the Liverpool Institute for Performing Arts (LIPA), the specialist higher education institution co-founded by Paul McCartney, is to open a Barcelona version (BIPA) in the coastal town of Sitges. The previous proposals included a large scale urban development plan, however the new Sitges Town Council would now use existing buildings. A public competition to manage the project could be opened in the upcoming months.

The ‘number two’ of the Centre-Right Catalan Nationalists (CiU), Josep Antoni Duran i Lleida, immediately replied that the Spanish Government is “the one creating mistrust” because of “its discrepancies” and Mariano Rajoy’s “absenteeism”. He also criticised the Spanish Government for not putting in place an action plan to promote employment, “despite having the tools to do so”. Soraya Sáenz de Santamaria, the Spanish Government’s Deputy Prime Minister and Spokesperson, has blamed Catalan and Basque nationalisms for “promoting a climate of instability”. They create “mistrust and insecurity”, which “keeps away foreign investment” and “job creation”, said Sáenz de Santamaria the week Basque elections have been announced.

The Penedès wine appellation is expecting “excellent” wines from this year’s harvest. Catalonia’s most important viticultural area has already started harvesting its chardonnay grapes and is expecting to harvest the other varieties in the next few days. The weather this year has been favourable for the appellation, with a “very healthy” crop that despite a reduction in volume, will be sufficient to fulfil the 22 million bottles normally produced by the wineries.

The trade union UGT has calculated that 478,969 jobs have been destroyed in Catalonia between the June 2007 and June 2012. Furthermore, the union fears a “layoff avalanche” next autumn in the public sector.

Foreign tourism in Catalonia continues to flourish despite the economic crisis. In July, there have been just over two million foreign tourists to Catalonia, 9% more than in the same month of 2011. In the first seven months of 2012, Catalonia hosted 8.4 million foreign tourists, a figure which represents 25.6% of international tourism to Spain. Catalonia has therefore consolidated its position as the most visited tourist destination in Spain.

This cultural trade fair of Mediterranean shores’ traditions will reach its 15th edition, organised in the Central Catalonia city of Manresa in early November. The 15th edition will be held from November 8th to 11th. It is a market for music, theatre and dance professionals, with shows for all ages and held on stage or on the street. This year, 104 groups will perform in more than 250 shows. The Israeli singer Noa will offer a concert together with the Napolitan ensemble String Quarter. The Catalan Sardana orchestra, Cobla Sant Jordi, will play with the Flamenco guitarist Niño Josele. Also, the fair will have a meeting space for professionals.

The economic crisis hits Catalan industrial areas. In Catalonia there is a total of 35,000 hectares of industrial plots of land. Up to 40% of this surface has no use after four consecutive years of losing activity, and during this time there have been more industrial buildings closing than opening.

The numbers of foreign workers contributing to Social Security in Catalonia reached 400,075 people at the end of July. This figure represents a 2.11% increase compared to a month ago. Seasonal work related to tourism and fruit harvesting caused the number of non-EU workers increase by more than 8,000 people over July.

The Cadaqués Orchestra played ‘Concerto libero’, an unfinished work for piano and cello at the Peralada’s Carme Church, in northern Catalonia. The Costa Brava festival is celebrating the 100th anniversary of the composer’s birth whose works have achieved international acclaim. The world premiere of the piece by Xavier Montsalvatge was the highlight of the concert which was dedicated to the composer, one of the most prominent figures in Catalan music.