catalonia

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.

The President of the Catalan Government, Artur Mas, leader of the Centre-Right Catalan Nationalist Coalition (CiU), sent a warning message to the rest of Spain and in particular to the Spanish Government. “If there is not an agreement on the economic bases”, “Catalonia’s way to freedom is open”. The Spanish Prime Minister and leader of the People’s Party (PP), Mariano Rajoy, stated on Tuesday morning that Spain and Catalonia should have other priorities. The Spanish Government and most of the rest of Spain are against a new fiscal agreement between Catalonia and Spain, reducing the Catalan solidarity contribution, which represents some €17 billion per year. Furthermore, the Catalan PP has stated it will stop giving its parliamentary support to CiU.

Catalan nationalism has changed over the years. Most Catalan nationalists have now concluded that Spain will never accept a plurinational state, will not fully respect Catalan language and culture, will continue threatening Catalonia’s self-government, and will not accept a reduction in Catalonia’s fiscal contribution to the rest of Spain, which annually represents between 6.4% and 8.7% of the Catalan GDP. Catalan nationalists are now tired of negotiating these issues and have come to the conclusion that Spain will never accept a comfortable place for Catalonia within the Spanish state. Now, 51% of Catalans citizens would vote for the independence in a hypothetical referendum.

September 11th is the National Day of Catalonia. It remembers the day Barcelona was defeated by the Bourbon army in 1714 and Catalonia lost its self-governmental institutions and a new political system was imposed. The institutional festivities include the traditional offer of flowers to Rafael Casanova’s statue, who was leading the Catalan army during the 14-month Siege of Barcelona (1713-1714). The main institutional event takes place in the Ciutadella Park of the Catalan capital. At 18.00, the main demonstration organised by civil society organisations supporting Catalonia’s independence will kick off.

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

Until now, the EU was refusing to openly discuss the issue and was stating it was strictly an internal matter to be solved within Spain. The President of the European Commission, José Durao Barroso, admitted that “in the hypothetical case of a secession” of Catalonia “the solution should be found and negotiated within the international legal framework”. In this new scenario, Catalonia would not automatically be a member of the EU but this would be part of the negotiations. Barroso was ambiguous about the future of the European citizenship Catalan citizens currently have and said that “EU citizenship is additional”.

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.

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.

Ivan Tibau, the Catalan Government’s Secretary of Sport, emphasises the “great effort” made by the Catalan Excutive to help the High Performance Sports Centre (CAR) and Catalan athletes compete in London 2012. The elite training centre did not receive funding from the Spanish Government for the last two years, amounting to €10.7 million. The Catalan Executive advanced the payment to keep the CAR running. Athletes trained at CAR made up 65% of medals won by the Spanish team at the London 2012 Olympics. Despite this, the Spanish Olympic Committee “closed the door” to the Catalan Government in regards to London 2012.

The President of the Catalan Government, Artur Mas, also talked about the delays of August payments to social care organisations, and he “hoped to be in a better situation” next month. However Mas could not give “a total guarantee” as it depends on whether the Spanish Government activates the Liquidity Fund for the Autonomies. In fact, Mas urged the Spanish Government to do so at the end of this month and said it is “illogical” to make a grand announcement about the measure and then not implement it.

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.

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.

Unemployment has fallen by 15,400 people in Catalonia during the second quarter according to the latest Labour Force Survey published this Friday by the National Statistics Institute. The overall totals indicate that 821,600 of the working population in Catalonia are unemployed at a rate of 20.95%, 130,700 more than a year ago. The state total shows an increase in unemployment in the second quarter, bringing Spain’s total to 5.7 million people without work, 24.6% of the working population. With nearly a quarter of the working population unemployed, the figures are higher than the historical record reached in 1994 during the last crisis.

The Minister for the Economy, Andreu Mas-Colell, warned the Spanish government that the Generalitat "will never accept political conditions" in exchange for capital from the Regional Liquidity Fund (FLA). He repeated the phrase three times after revealing that the Catalan government has accepted financing from the FLA and has so far employed “all available instruments of liquidity” but “only” those that are linked to exclusively economic conditions. The minister admitted that the Catalan government will welcome the FLA due to “the liquidity pressures” that the Generalitat is facing. The specific amount of funding has not been revealed but Mas-Colell assured that “it will be what is necessary.”