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The participation of the Catalan business community and local governments in the management of Barcelona’s Airport has been halted. This has been a long-term claim by many in Catalonia, as they believe that the centralised management of the airports has clearly benefited Madrid over Barcelona. The new Spanish Minister for Public Works and Transport announced the decision to cancel the tender process to privatise the management of Spain’s two main airports, Madrid Barajas and Barcelona El Prat. The reasons for the decision have been put down to a negative time for the markets and a desire for the value of the assets to increase in the future.

The People’s Party (PP) has taken back its parliamentary motions against the Catalan Government’s Budget proposal. The Government is run by the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU). The PP’s leader in Catalonia has warned CiU that “it does not represent a blank cheque” and that “sensible” negotiations need to take place in order for a final agreement to be reached. The PP has already backed the Catalan Government to approve its budget for 2011. The rest of the opposition parties regret that an agreement between CiU-PP has taken place.

Catalonia already approved its own spending limit through a law of its own last September. The Spanish Vice President, Soraya Sáenz de Santamaría, explained that the new Budget Stability and Sustainability Law will introduce “mechanism corrections” and “almost automatic” sanctions for public administrations that do not meet the deficit objectives. In addition, before approving their budget, the Autonomies and large city town councils will have to commit to a spending limit and present detailed reports on several aspects of the budget. However, she stressed that each autonomous government will have the freedom to allocate resources.

The Spanish Finance Minister, Cristóbal Montoro, announced that the Central Government might heavily fine the governments of Autonomous Communities that do not meet the deficit objective. Montoro, from the People’s Party (PP), met with the regional governments run by his party to prepare a common position on the issue. On the same day, the Centre-Right Catalan Nationalist Coalition (CiU) gave its support to the Spanish’s Government decree to cut public spending and increase taxes, announced at the end of December.

The outgoing Spanish Government has refused to pay Catalonia €759 million this year despite being legally obliged to do so and having stated publicly on several occasions it would pay the money. The Spokesperson for the Catalan Government announced Catalonia is risking to miss the deficit objective for 2011 without the funds. Facing this situation and the damage caused by it, the Catalan Government has decided to take the Spanish State to court and explain the issue to European institutions. Mariano Rajoy, Spain’s future Prime Minister, has said that he is not aware of the issue.

The Spanish Government refuses to transfer some of the funds that it is legally obliged to pay Catalonia in 2011. Without this money, the Catalan Government will have difficulties meeting the deficit objective for this year. The Catalan Minister for Finance, Andreu Mas-Colell, considers the stance of the Zapatero Government to be “rude” and ignorant to the needs of Catalonia. Furthermore it forces the finances of Catalonia to be put in the spotlight. Every single Catalan political group, including the Socialists and the People’s Party, have criticised the decision of the soon to be former Spanish Prime Minister, and have expressed their support for Mas-Colell.

The conservative People’s Party (PP) has won the Spanish General Election with an absolute majority. The PP obtained 186 MPs in the 350-seat Spanish Parliament, its best ever result. The Socialist Party (PSOE), who are the current Spanish Government, obtained the worst results in its history, winning just 110 MPs. In Catalonia, another historical change has taken place: the Centre-Right Catalan Nationalists (CiU) have won in the Spanish elections for the first time. The Socialists lose 44% of their MPs in Catalonia, and their main candidate Carme Chacón, is in a bad position to lead the PSOE after Zapatero. The PP continues as Catalonia’s third party, despite an improvement in its results.

Catalonia is the only autonomous community where the Socialist Party has clearly won, but has lost around 35% of its MPs, according to the exit poll released by TV3. The People’s Party (PP) will remain Catalonia’s third biggest force, behind the Centre-Right Catalan Nationalists (CiU), who will increase their share by some 40%. The exit polls released at 20.00 CET, when the polls closed, indicate an absolute majority for the PP and an historical defeat for the Socialists throughout Spain. The PP will get between 181 and 185 MPs, when the absolute majority is 176 seats. The election day has been calm, with a lower turnout than in the 2008 elections, particularly in Catalonia.

Catalonia and the Basque Country might be the only Autonomous Communities in Spain without a victory for the People’s Party (PP). The Socialists are likely to win once again in Catalonia, but they risk loosing 40% of their seats. If they slump even further then they risk being overtaken by the Centre-Right Catalan Nationalist Coalition (CiU) or even the PP. A quiet electoral campaign has come to an end, with three main unknown answers: if the Socialist party will get its worst results over the past few decades, if they will also lose in their stronghold of Catalonia, and how the international financial markets will react in the coming days.

In Catalonia, the PP would get its best results in history, and could become the second most voted party in the territory, a position disputed with the Centre-Right Catalan Nationalist Coalition (CiU). The Socialist Party, which has won the Spanish elections in Catalonia for the last 32 years, might still win, but it will be a close battle with the CiU and the PP. A major surprise in Catalonia cannot be completely ruled out. In any case, on the contrary to previous elections and as it seemed some weeks ago, votes in Catalonia might not change the final results and the PP’s absolute majority would not depend on its Catalan supports.

Next November 20th, Spaniards will vote for the new Spanish Parliament. They will elect one of the lists running in their province, which is their constituency. Catalans will thus elect the lists running in the four Catalan provinces. Therefore, they will not directly elect Alfredo Pérez Rubalcaba (PSOE) or Mariano Rajoy (PP), but their party candidates in Catalonia, as well as parties only running in Catalonia, such as the Centre-Right Catalan Nationalist Coalition (CiU), the Left-Wing Catalan Independence Party (ERC) or the Catalan Green Socialist Coalition (ICV-EUiA).

According to polls, Catalonia might be essential to ensure the absolute majority to the People’s Party (PP) or to save the Spanish Socialist Party (PSOE) from getting its worst results ever. The Socialists risk loosing more than a third of its seats in Catalonia while the PP, far from winning in Catalonia, could get its best results. Catalan nationalists ‘Convergència i Unió’, who are the third largest group in the Spanish Parliament, could win the elections in Catalonia, ending the ten Socialist Party victories in a row in these elections.

Catalonia has a different political landscape than the rest of Spain, and it is where the People’s Party (PP) always gets its worst results. Polls indicate that in the next Spanish elections, the People’s Party will be very far from winning in Catalonia but it could get its best results winning between 12 and 14 seats. Looking to ensure an absolute majority in Spain, the PP’s leader Mariano Rajoy plans to better the party’s results in Catalonia and therefore decided to start the official campaign in a town from Barcelona Metropolitan Area.

The President of the Catalan Government, from the Centre-Right Catalan Nationalist coalition CiU considered the statement “an important step” and stressed that they “are hoping for the terrorist group's total break up and the total abandonment of its weapons”. The Left-Wing Catalan Independence Party, ERC, asked the Spanish Government to quit its “ivory tower”, “as the United Kingdom did”, and “let the Basque and the Catalan peoples decide their future”. However, the Catalan Association of Terrorist Victims has criticised ETA’s announcement and said that it only hopes for ETA’s disappearance, but other individual victims have celebrated the news. ETA has killed more than 800 people, 50 of them in Catalonia.

The Debate on the State of the Nation ended at the Catalan Parliament with the approval of several resolutions. After three days of debate, the resolutions were voted on Friday. One of them condemns the way in which the Spanish Constitution amendment was negotiated and passed, as it did not take into account parties that participated in the Constitution drafting and approval, and it also interferes with the financial autonomy of Catalonia. Another motion demands the Catalan Government to present the budget for 2012 before October 10th next.