economy

The Catalan Minister of Economy and Finance, Oriol Junqueras, defended the good health of the Catalan economy on Friday and insisted on the Catalan executive’s commitment to continue within the European Union in case of independence. At the 33th Annual Meeting of the Economy Circle in Sitges, Junqueras confirmed that his executive expects to surpass 2.7% of annual economic growth and highlighted the fact that Catalonia account for 85% of the deficit reduction of all administrations in Spain. The Catalan minister also used the opportunity to communicate a message of calm to the economic sector, guaranteeing that “Catalonia will not leave the EU in case of independence” since there is “absolutely no legal mechanism that foresees this case”. Along this line, Junqueras stressed the “firm pro-European commitment” of the Catalan government and its determination of “strengthening” a common project and creating “excellent relationships” with neighbors, “especially Spain”. In this case, however, like “two states with the same powers”.

Catalan exports reached €17.6 billion during the first quarter of 2017, a 13.6% increase in comparison to the same period last year. The figures, published by the Spanish Ministry of Economy and Competitiveness, are the best in the entire historic series. The exports in Catalonia between January and March 2017 represent 25.3% of the entire amount in Spain. In terms of imports, Catalonia saw in the first quarter an increase of 13.5% year-on-year, to €21.5 billion euros. The Catalan trade deficit was €3.9 billion, 13.5% more than the first quarter of 2016. The main exporting sectors were chemical products, which increased by 10.5% reaching €4.6 billion; manufacturing equipment, with an increase of 6.7% (€3.1 billion); and the automobile sector, which grew by 14% to €2.9 billion. The chemical products (14.5%, €3.9 billion) and automobile sector (8.8%, €3.3 billion) also contributed to the increase in imports.

The president of the American Enterprise Institute (AEI), Arthur Brooks, explained in an interview with the CNA how the impact of an independent Catalonia on the European Union “could in a strange and paradoxical way have the greatest benefit that Europe could imagine”. The renowned American social scientist said that Catalonia, with its entrepreneurial culture, could become “an example” to other countries and have a “resuscitation effect” on a “struggling” Europe. Brooks also stated that “the Catalan independence movement is not populist”. Brooks was invited by the Catalan Council of Public Diplomacy (DIPLOCAT) to give a conference on “Populism and Human Dignity” in Barcelona on May 17.

Catalonia will offer a pioneer testing ground for autonomous and connected cars. This Thursday the Catalan Minister of Business and Knowledge, Jordi Baiget, and the Catalan Home Affairs Minister, Jordi Jané, announced the project launch at the Barcelona Automobile congress, currently taking place, from 11 to 21 May in the Fira exhibition center. The ‘Catalonia Living Lab’ project, designed by the Catalan Government, the industry and sector agents, aims to offer vehicle and component manufacturers to conduct tests and validations of this technology on Catalan roads, circuits, and in cities. To begin with, the ‘Catalonia Living Lab” tests areas will include 7 routes of almost 200 km, 7 areas of more than 12 square kilometers, and 3 circuits in different places around the country.

American Airlines new direct link between Barcelona-El Prat airport and Chicago is expected to increase the airline's passengers in Catalonia by 15%. The new flight will operate from the 6th of May and will be offered alongside the current flights to Miami and New York. American Airlines also flies seasonally direct from Barcelona to Charlotte and Philadelphia. The Regional Sales Director of American Airlines in Spain and Portugal, José A. Blázquez, confirmed these figures in a press conference this Tuesday in the Catalan capital. Barcelona is a key destination for American tourists, said the U.S. Consul General, Marcos C. Mandojana, who highlighted the growing number of connections from Catalonia to his country.

Foreign investment in Catalonia throughout 2016 totaled €4.8billion, 1.3% less than in 2015. Indeed, 2015 had set a historic record in terms of foreign investment, registering a 57.8% growth in comparison to the previous year. Despite this slight decrease, 2016 represents the second best year in the historic series, according to data published this Tuesday by the Spanish Ministry for Economy, Industry and Competitiveness. Moreover, Catalonia ranks second in terms of foreign investment in Spain, Accounting for 20% of the investment and only surpassed by Madrid, which attracts 46.7% of foreign capital. Regarding Catalan exports, they totaled €5.3 billion in January, the highest figure for this month since 2000. This data confirms Catalonia as the leading territory in Spain in terms of exports followed by Andalusia, whose exports totaled €2.5 billion.

The port of Barcelona closed last year with unprecedented figures. The transport of shipping containers rose by 14.5% with a record figure of 2.2 TEU containers handled. This according to the data presented on Tuesday by the Port President, Sixte Cambra, who said that exports rose by 3.8% while imports increased by 8.7%. The Asian-Oceania market now represents 77% of imports and 43% of exports from the port. In fact, China alone accounts for 43% of the import containers, with a 13% increase during 2016. It is also to China that most of the exporting containers go. The American market represents 25% of exports and 9% of imports from the Port of Barcelona. Catalan exports being handled from the Port of Barcelona are mainly food, equipment and chemicals. Imports are basically textiles, equipment and other manufactured products.

Spain’s call for Catalan leaders to attend the upcoming Autonomous Communities’ summits to discuss regional policies has not changed the Government’s plan for the meetings. The Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, have refused to attend the Council on Fiscal and Financial Policies (CPFF, going by its Catalan initials) this Thursday, citing other political commitments. Catalan Secretary of Economy, Pere Aragonès, will go instead. For his part, Catalan President, Carles Puigdemont, has already announced he will not attend the Conference of Presidents convened by the Spanish President, Mariano Rajoy, for the 17th of January. “Catalonia has won the right to a bilateral relationship as the demands of the Catalan people have nothing to do with the requests of other Autonomous Communities”, Puigdemont said in October, when he announced that he would not be attending the conference.

The support of 2 MPs from radical left pro-independence CUP, the main partner of governing cross party 'Junts Pel Sï', allowed the budget for 2017 to overcome the appeals presented by the oppoistion groups in the Parliament. Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, defended this Tuesday the budget for 2017. According to Junqueras, the draft especially focuses on “fiscal justice” and social expenditure, which he defined as fundamental pillars for economic growth. “We have many difficulties and many more are being put in our way, but it is clear that our economy and our society are capable of making it through”, he stated on the first day of the two-day session during which the Parliament will vote on the budget for 2017. “This is the best budget possible”, he assured in November, right after presenting the bill to the Parliament’s Bureau and emphasised the social orientation of the draft budget. Indeed, more than 74% of the total bill for 2017 is allocated for social expenditure and €1.1 billion more has been allocated for this purpose in comparison to the budget for 2015, which had to be extended for 2016.

The Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, voted against the new regional deficit target of 0.6% of GDP agreed between the Conservative People’s Party (PP) and the Spanish Socialists (PSOE). During the Council on Fiscal and Financial Policies (CPFF, going by its Catalan initials) on Thursday evening, Junqueras said that the target is “absolutely far from what citizens need and deserve”. The Catalan Government had asked for a 1.18% deficit target for 2017, but the Autonomous Communities’ limits were set instead at 0.6% for next year, 0.3% for 2018 and 0% of GDP for 2019. They were accepted despite the opposition of Catalonia, the Balearic Islands and Valencia. The communities led by the PSOE abstained. The Spanish Finance Minister, Cristóbal Montoro, celebrated the fact that only three territories voted against the measure, saying there was a “good atmosphere” at the meeting.

The Government’s draft for the 2017 budget was published in the Parliament’s Official Journal this Tuesday. On Wednesday, the different groups in the Catalan Chamber will be able to present appeals and the whole bill will be discussed on the 20th of December. “This is the best budget possible”, Catalan Vice President and Minister for Economy and Tax Office, Oriol Junqueras, stated right after presenting the draft. “The time of cutbacks is over”, he assured and emphasised that the budget for 2017 has been enhanced in comparison to the previous one “both as a whole and in each department”. Indeed, the budget for 2017 allocates €1.1 billion more to social expenditure than the bill for 2015 – which was extended for 2016. The Health System with €8.7 billion and Education and Universities with €5.5 billion are the areas with the highest amounts allocated.

The Government’s draft budget for 2017 presented to the Parliament's President, Carme Forcadell, this Tuesday includes an allocation of €5.8 million to guarantee that the pro-independence referendum scheduled for September will be carried out. In particular, the bill establishes €5 million for electoral processes and €0.8 million for participation. Moreover, the budget also includes hidden allocations which would allow the referendum to take place despite the inevitable suspension of the Spanish Constitutional Court (TC). In 2014, the budget also allocated €6 million oriented toward holding the 9-N symbolic vote in independence. At that time, the allocation was included within the Public Administrations department. However, this time the allocation would be an explicit competence of the Catalan Ministry for Economy and Tax Office. 

The Catalan Ministry for Economy and Tax Office presented this Wednesday the data of the macroeconomic chart to be included in the budget for 2017, which the Catalan executive expects to pass next week.  According to this document, the Catalan economy’s expected growth will be 3.4%, 0.5% more than the growth forecast for the Spanish economy, which is expected to be 2.9%. Regarding 2017, the chart keeps the figure released last May which foresaw 2.7% growth. According to the Catalan Vice-president and Minister for Economy and Tax Office, Oriol Junqueras, this figure is “considerably higher” than the expected growth for the Eurozone (1.5%). The budget for 2017 also foresees the creation of 160,000 jobs between 2016 and 2017. 

According to a study released this Thursday by the Catalan Ministry for Economy and Tax Office, the “autonomic framework” does not leave “enough room” to cope with poverty and inequality in Catalonia. ‘Economy note 103: Analysis and tools to tackle poverty and inequality’, a report that includes 19 extensive articles from around 30 experts, technicians and academics, stresses that the scope of the Catalan Government’s public policies is limited by “the restrictions on powers and availability of income of the current autonomic framework”. In the same vein, Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, said that this situation has forced him to prepare a budget for next year “that is neither the one Catalans deserve nor what they need” because it does not correspond to the “economic and fiscal effort” made by the citizens.

In annual terms, the Catalan economy grew by 3.3% in the third quarter of 2016 according to official data released this week by the Catalan Ministry for Economy and Tax Office and the Statistical Institute of Catalonia (Idescat). This increase is mainly thanks to the boost provided by the services sector, which saw annual growth of 3%, and the acceleration of the industrial sector, whose growth stood at 4.9%, the highest for the last six years. The quarterly growth rate, however, stood at 0.7%, one tenth lower rise than the previous quarter, but four percentage points above the Eurozone average. According to the data, there is a slight slowdown in the expansion of the Catalan economy, as annual growth in the first and second quarter of this year were 3.7% and 3.5%, respectively.