centralism

The Spanish Minister of Justice, Rafael Català, proposed this week "to study a constitutional reform" that is very far from making any concession to Catalan claims and meet them halfway. In fact, it seems that the Spanish Government's real intentions are to consolidate the recentralisation of powers and cultural homogenisation undertaken in the last few years that have trimmed Catalonia's self-rule and attacked Catalan culture and language. The Spanish Justice Minister stated this week that he is ready to discuss a limited reform of Spain's Constitution that would not affect its core aspects – such as Spain's territorial model – and which would apparently only address secondary matters, such as the prevalence of men over women in the Crown's succession or the definition of the Spanish Government's exclusive powers. However, the aim is to put an end to the decentralisation trend that started in the late 1970s and early 1980s.

The President of the Catalan Government, Artur Mas, has stated that the independence process will be officially launched if pro-independence parties obtain an absolute majority of the MPs elected in the forthcoming Catalan Parliament elections, to be transformed into a ‘de facto’ plebiscite on independence from Spain. Mas emphasised that during the last 3 years, Catalan parties have been trying to organise a legal and mutually-agreed vote but that the Spanish Government has not wanted to talk even about it, despite more than 1.5 million citizens demonstrating each year on the streets and the results of the previous Catalan elections of November 2012. However, Mas stated he would still “exchange the forthcoming elections for a mutually-agreed referendum”, but highlighted that the Spanish Government has only left the transformation of regular elections into a plebiscite for Catalans to freely and democratically vote on their future as a country, an option that Mas already identified as the last resort in 2013. Therefore, according to him, “in elections, MPs are counted”, “if we were having a referendum we would be counting votes, but this is not the case”, he stressed.

The Spanish Government has presented its budget for 2016 and once again its investment in Catalonia is very far from being in line with the Autonomous Community’s GDP or population share within Spain. According to the planned budget for next year presented this Tuesday (many months in advance for electoral reasons), the Spanish Government plans to allocate only 10.7% of its territorial investment to Catalonia, even though the Catalan economy represents 19% of Spain’s overall GDP and Catalans make up 16% of Spain’s population. The amount planned for 2016 is however a bit higher than that allocated for 2015, which was only 9.5% of Spain’s total, the lowest in many years and widely interpreted to have been in retaliation for independence claims. The amount for 2015 was €1,072.3 million and that for 2016 is €1,179.5 million, which means a 10% increase (+€107 million) but is still one of the lowest investments in decades, both in percentage and absolute terms. Nevertheless, the Madrid-based media has focused on this increase, presenting Catalonia as a clear winner and forgetting about the extremely low investment levels from 2015 and 2016.

Despite the fact that all the Autonomous Community governments that are not run by the People's Party (PP) requested the Spanish Executive  – run by the PP – to allow them a greater deficit in 2016 and that Spain's independent fiscal authority Airef also recommended granting regional governments greater deficit targets for next year, the Spanish Finance Minister, Cristóbal Montoro, has rejected doing so. In 2016, the Autonomous Communities will have to close their budgets with less than a 0.3% deficit, "an absurd" and "unrealistic" figure according to the Catalan Finance Minister, Andreu Mas-Colell, who was recently awarded an honorary PhD in Economics by the University of Chicago. The Catalan Government asked for a 0.88% deficit target for 2016. Besides this, next year the Catalan Executive will receive €1.2 billion that should have already been transferred by the Spanish Executive but was not, due to Montoro's tax revenue miscalculations. In addition to this, since economic activity is growing, the Spanish Government will increase the Catalan Executive's funds by €700 million each year from 2016 onwards.

Lluís Llach, one of the most famous Catalan musicians and one of the main voices against Franco's dictatorship, will  top the pro-independence unitary list running in the Girona Province in the forthcoming Catalan elections, which should become a 'de facto' referendum on independence. In the Tarragona Province, the 'Junts pel Sí' pro-independence list ('Together for the Yes') will be topped by economics professor Germà Bel, an expert on infrastructure. The list groups together Liberal, Social-Democrat, Green, and Christian-Democrat politicians, as well as many independents and representatives from civil society. It will officially start the independence process if they win the elections and pro-independence parties obtain an absolute majority in the Catalan Parliament. The list is topped by former Eco-Socialist Member of the European Parliament, Raül Romeva, who is running in Barcelona Province.

The Spanish Parliament has approved a bill through which the Spanish Government can take control of the Mossos d'Esquadra (Catalonia's police corps managed by the Catalan Executive), in order "to defend Spain" or in the event of a natural disaster. The Spanish Government has justified the measure by stressing the need to enhance coordination in a crisis situation, putting several security corps under the same command. However, the law also comes in the middle of Catalonia's debate on independence from Spain and with several voices in Madrid, including leading members of the Spanish Government, talking about the possibility of suspending Catalonia's autonomy in the event of a unilateral declaration of independence. The Catalan Government will take the new law to the Constitutional Court, as it is an invasion of its own powers.

Catalonia's Supreme Court (TSJC) has ruled against the petition filed by the Spanish Ministry of Education that asked to reopen the enrolment process for the next school year in order to use registration forms in which parents could explicitly choose whether they wanted their children to be taught in Spanish as an instruction language. In the last few years, the Spanish Government has been undertaking a judicial battle to change Catalonia's school model, which has been developed with an extremely wide consensus over the last 35 years and completely guarantees the knowledge of both Spanish and Catalan, as results show. The model is based on the linguistic immersion principle, through which children are mostly taught in Catalan, although many flexible measures are included. However, the Spanish Government would like to have Spanish as an instruction language as well, despite most of the pedagogic experts considering that if this were the case, many children from Spanish-speaking environments would not have a proficient knowledge of Catalan and would not be bilingual.

In times of economic crisis, the Mariano Rajoy-led Spanish Government has been making recentralisation a main driver of its political agenda, using the economic recovery as the reason for passing the reforms. An additional step in this direction was taken on Monday with a new regulation forcing Spanish Autonomous Communities to seek permission from the Spanish Ministry of Finance before granting loans and guarantees to private companies located in their territories. From now on, Madrid's permission will be conditional upon the applicant's compliance with deficit targets. The new regulation substantially curbs the Autonomies' powers to shape their industrial policies, following a reform passed in May that modifies both the Organic Law for Financing the Autonomous Communities and the Organic Law on Budgetary Stability and Financial Sustainability.

The International Monetary Fund (IMF) has reviewed and improved its economic growth forecasts for Spain, going from a 2.5% growth rate for 2015 forecast in April to a 3.1% one foreseen this June, and from 2% to 2.5% for 2016. However, the IMF has also issued recommendations and warnings, emphasising that Spain will have to carry out "additional fiscal efforts" and "structural reforms" in order not to jeopardise the country’s economic recovery. The IMF recommends that Spain reduce the costs of public healthcare and education by making users pay for part of the services. According to the international organisation, Autonomous Community governments – such as Catalonia's – should have greater fiscal responsibilities in such systems since they exclusively manage them. In this vein, the IMF has praised the fiscal consolidation efforts undertaken over the past few years by regional governments and has asked for an increase in their funding and fiscal powers, as well as for the adapting of the deficit targets to their needs.

The Catalan Government has sent another warning message about its lack of liquidity, which depends on the Spanish Executive’s regular transfers since most taxes are collected by Madrid-based services. The Catalan Minister for the Presidency, Francesc Homs, accused the Spanish Government of "deliberate asphyxia" and asked the rest of the Catalan parties to "pool together" to denounce the situation. According to Homs, such financial asphyxia will affect everything except salaries. All Catalan Government departments will be affected and their payments to service providers will be delayed. The Catalan Finance Minister, Andreu Mas-Colell, already warned about this financial asphyxia on previous occasions. In the coming days, Mas-Colell will meet with the rest of the parties to discuss the situation. However, the Spanish Finance Ministry rejects the accusation and has stated that it has made all the pending transfers.

The Spanish Government gave the green light on Friday for the bill for the ‘Law on National Security’, amid criticism from Catalan political parties. The new text foresees the Spanish Government taking control of police corps run by the Autonomous Community executives, such as the Catalan Government’s Mossos d’Esquadra, and the local police run by municipalities. This shift of powers would happen if a State of Emergency was to be declared in a particular area due to a natural disaster or in order “to defend Spain” or its “Constitutional values”. Thus, PM Mariano Rajoy is passing a law that would allow the Spanish Government to take control of the Catalan Police if the independence process was to go too far for Madrid’s liking. Besides this, the new bill also establishes powers in some important areas such as cyber security, maritime safety and financial security, among others.

There has been railway chaos throughout Catalonia due to a major failure in the control centre of the IT system of the network run by Adif and operated by Renfe, two public companies both owned and managed by the Spanish Government. This incident is to be added to a long list of problems in this network during the last decade due to a lack of investment by the Spanish Government. All the short- and medium-distance trains in Catalonia using Adif's network stopped completely between 6.30 am and 7.45 am, affecting some 200 trains and 80,000 people at the start of rush hour. Trains started to work again with more than a 1 hour delay and took the entire morning to gradually recover the accumulated delay, but parallel services have also been affected, such as the High-Speed network, where a train was stuck for 2 hours in a tunnel.  The Catalan Government considers the situation "unacceptable" and demands immediate investment, or it will request the transfer of the infrastructure.

The Catalan Government has approved its 'Strategic Plan for the External Action 2015-2018', which foresees the opening of additional delegations abroad. The Spokesperson for the Catalan Executive and Minister for the Presidency, Francesc Homs, who is in charge of External Relations, announced that some of these delegations may be opened in the coming weeks. Homs admitted that the Spanish Government may appeal against the new delegations and the plan, as it did with the delegations in Rome and Vienna, and the External Action Law. The Law was approved last November but was already foreseen in the Catalan Statute of Autonomy from 2006. In addition, Catalonia's own external action was validated by the Spanish Constitutional Court in 2010. With the independence debate on the table, the Spanish Government is insisting on reducing the number of delegations and controlling their activities.