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The deficit target for Spain’s entire public sector has also been raised from 4.5% to 6.3%. The Spanish Government has kept 81% of the deficit for itself while it is only responsible for 50% of Spain’s public spending. The Spanish Government has allowed itself a 5.1% deficit target, while the Autonomous Communities are only allowed a target of 1.2%. The regional governments fund the basic welfare state services and manage more than 35% of Spain’s total public spending. The Catalan Government welcomes the revision but considers it not to be enough. The Catalan Finance Minister, Andreu Mas-Colell, has been insisting that the Autonomous Communities should have at least a third of the total deficit. Therefore, with an overall target of 6.3%, the Catalan Executive should have a target at least 2.1%.

The European Commissioner for Education, Culture and Multilingualism, promised Catalan Euro MPs to ask the Spanish Government – chaired by Mariano Rajoy - about the Education Reform it is preparing, which goes against the linguistic immersion model of Catalonia’s school system. According to the Catalan MEPs, Androulla Vassiliou was “a bit perplexed” about the Spanish Government’s initiative and the recent judicial sentences obliging teaching to be in Spanish if a single pupil in the classroom asks for it. Besides, the Spanish State Council – the Spanish Government’s top advisory body – criticised the reform’s measure obliging the Catalan Executive to pay for private schools in Spanish for the pupils who do not want to attend public schools in Catalan. The Catalan Education Minister asked the Spanish Government “to paralyse” the reform.

In an official visit to Brussels where the President of the Catalan Government, Artur Mas, met with three Commissioners, he recognised that the European Union institutions view Catalonia’s self-determination “with great respect” but they have “some concerns” about “the potential independence” from Spain. Mas emphasised that Catalonia is too significant and relevant “not to be taken into account”. Therefore, the EU “is interested in providing Catalonia with stability” and to “not turn their backs on the Catalans’ majority public opinion”. Mas celebrated that at an international level “instead of closing the door, they listen to us”, which “is different” to the Spanish Government’s attitude.

On Wednesday it became known that the Catalan Banc Sabadell would acquire Banco Gallego from the Spanish Fund for Orderly Banking Restructuring (FROB). However, the details of the operation were still being discussed and no detailed information was disclosed. On Friday, it was stated that the FROB – owned by the Spanish Government and the Bank of Spain – will inject €245 million of public money into Banco Gallego. In exchange, Banc Sabadell will buy the financial entity for the symbolical price of 1 euro but will take care of all the potential future losses.

The Spanish Supreme Court has rejected an appeal presented by one family against the Catalan Supreme Court’s decision adopted in March last year that validated the current public school model of linguistic immersion. The Spanish Supreme Court has stated that the Catalan Government does not have to change the entire Catalan school model, which has been in place since the early 1980s. However, it does have to consider individual petitions from families wanting to school their children in Spanish and make Spanish the language of instruction “in the proportion that the Catalan Government considers to be convenient” in “the school and class in which the offspring of the petitioner is being taught”.

A month ago, the Catalan Government issued a preliminary deficit figure for last year of 2.3%. Now, the Catalan Finance Minister, Andreu Mas-Colell, has corrected this and issued “a more precise figure, although not definitive yet”, which represents having undertaken an adjustment of €3.3 billion in a single year. The Catalan Government was supposed to meet a deficit target of 1.5% in 2012, a figure imposed by the Spanish Executive and considered too strict by Mas-Colell, since it is not proportional to the Catalan Executive’s share of public spending. For 2013, the Spanish Government is imposing an even stricter 0.7% deficit target. Mas-Colell has been repeating that it is “irrational” and needs to be changed.

Andreu Mas-Colell, the Catalan Finance Minister, has sent a letter to the European Commissioner for Economic and Monetary Affairs, Olli Rehn, to denounce the fact that the Spanish Government is proportionally imposing much stricter deficit target on the Autonomous Communities than that of the Spanish Executive, obliging them to implement a much larger and faster adjustment. In 2013, the Spanish Government allowed itself a 3.8% deficit target and imposed an objective of 0.7% on the Autonomous Communities. In Spain regional governments manage 36% of the total public spending, including the main public services such as healthcare, education and social affairs. The Catalan Government manages an even larger share, as it has more devolved powers.

Through its FET-Flagship programme, the European Commission is allocating €1 billion to each of the two main research projects in Europe. The first one is a project to explore the properties of graphene, a new material deriving from graphite that might revolutionise industry as silicon did a few decades ago. The second one will simulate a human brain in order to understand how it exactly works. The Catalan Institute of Nanotechnology is one of the nine leading institutes coordinating the graphene project, in which 623 research groups from 32 different countries will participate. Furthermore, the Barcelona Supercomputing Center will take care of the calculations at a molecular level in the Human Brain Project.

The Catalan Government has been insisting on the need to internally redistribute deficit objectives in Spain, splitting them in a fairer way in order to better pair the responsibility of the management of basic services with their share of Spain’s total deficit target. Currently, the Spanish Government is keeping most of the deficit allowed by the European Union for itself, despite the fact that it only represents 50% of Spain’s total public spending, and it has forced regional and local governments to a Draconian budget adjustment. The European Parliament asked EU Member States to internally split deficit targets in a fair way for the benefit of the public services aimed at the citizens. Now, the Spanish Ministry for the Economy, Luis de Guindos, talked about distributing deficit targets “equitably”, in front of the European Commissioner for Monetary Affairs, Olli Rehn.

IAG, the airlines group formed after the merger of British Airways and Iberia, has announced its plans to acquire 100% of Vueling’s capital. Iberia already has 45.85% of the Catalan airline. Now, IAG intends to buy the remaining 54.15%, equivalent to 16.2 million shares. IAG is offering €7 per share, 28% more than Vueling’s last trading price on the stock exchange market. Vueling is one of the few airlines in Europe making a profit. Catalan politicians are “worried” about the purchase, as Vueling is based in Barcelona El Prat Airport and is committed to its expansion. However, Iberia abandoned its plans to develop El Prat and has prioritised Madrid Barajas. A Catalan MEP has asked the European Commission about the possibility of there being a free competition obstacle.

The President of the Catalan Government, Artur Mas, held a debate in Brussels, at an event organised by the think tank Friends of Europe. Mas praised Catalonia’s European and democratic traditions. He talked about the self-determination process he is leading, which will be “scrupulously democratic”, “absolutely peaceful”, “demonstrably transparent”, “with an ample majority” and “within the framework of the European Union”. “What I want for Catalonia is for it to be its own State that must, necessarily, share interdependencies within a more united and stronger Europe”, he stated. If Catalonia could not remain in the EU, he would still ask the Catalan people about their future, “as it is the most important thing”. The opposition parties criticised Mas’ trip before the start of the electoral campaign.

The report, published by the British Parliament, has been drafted by a senior expert on the enlargement of the European Union, Honorary Director-General of the European Commission and Senior Adviser at the European Policy Centre. The arguments in the document also apply to the Catalan case. The text states that “for practical and political reasons [Scottish people] could not be asked to leave the EU and apply for readmission” since “having been members of the EU for 40 years, [they] have acquired rights as European citizens”. The analysis concludes that “negotiations on the terms of membership would take place in the period between the referendum and the planned date of independence” and that “the EU would adopt a simplified procedure for the negotiations”.

Commissioners Reding and Almunia have publicly said that, if there were a unilateral declaration of independence, Catalonia would not be automatically expelled from the EU. However, after being put under pressure by the Spanish Government, Reding sent a private letter stating she shared Madrid’s analysis that a unilateral independence would lead to exclusion from the EU and having to re-apply for accession, which would require a unanimous vote among the 27 Member States. After Madrid’s complaints about previous statements, the EC stated that it would not give its opinion on the issue if the Spanish Government does not explicitly ask for it “on the basis of a precise scenario”. The Catalan Government has noted that there is not a precise scenario as yet. None of the main parties propose a unilateral declaration of independence.

They say that European legislation foresees the cancellation of the voting rights of an EU Member State if there is “a clear risk of serious […] and persistent breach” of the common values. The four MEPs denounce “the military threats” and “the tone used by the People’s Party and the Spanish Government”. They have sent a formal letter to the European Commissioner for Justice, Fundamental Rights and Citizenship, Viviane Reding. They ask the EU to be vigilant and “to evaluate the real risks of a potential military intervention” by Spanish forces against Catalonia. If such a risk existed, the EU should suspend Spain’s voting rights in the European Council.

As in the past, Catalonia will not receive the investment percentage it is legally entitled to by the current legislation. Instead of getting 19% of the foreseen investment in infrastructures made throughout Spain, in the Spanish Government’s budget for 2013 Catalonia will only receive 11.9%. Furthermore, essential infrastructures for Catalonia’s economy and Spain’s and Europe’s competitiveness are under-budgeted while the Spanish Government finds the money to build non-priority infrastructures, such as high-speed railways in Galicia. On top of this, only 35% of the public work initially foreseen in Catalonia by the Spanish budget for 2011 was executed, while in Madrid the work executed came to 111%. Besides, the Spanish Government has reduced its funds to Catalan cultural centres and festivals by 70% over two years.