economy

The Financial Times report FDi European Cities and Regions of the future 2016/2017, recognised Catalonia as the best Southern European region to invest in for 2016 and 2017. To make the most of this prognosis, the Catalan Minister for Business and Knowledge, Jordi Baiget, visited London this Monday, in the framework of the 'Brexit' plan, which aims to promote foreign investment in Catalonia and strengthen trade relations with the United Kingdom. At a meeting with thirty businessmen and international investors at the headquarters of the newspaper the Financial Times, Baiget explained that that there is "no anxiety" among investors regarding the political process going on in Catalonia, but rather only "interest". Furthermore, the Catalan Minister stressed that investors really value “Catalonia’s assets”, such as its “good communications and trained and qualified people”. 

In August, Catalan exports increased by 13.8% over the same period in 2015, reaching €4.5188 billion and setting a new record as the 'best August’ ever registered (since the collection of data began). According to figures published this Thursday by the Spanish Ministry for the Economy and Competitiveness, Catalonia’s exports of goods abroad accounted for 25.6% of the total sales in Spain. The increase of Catalan exports was higher than the EU average (+12%) and well above that of countries such as France (+2.3%) and the UK (+1.2%). However, this increase was lower than that of countries such as Germany (+14.2%) and Italy (+29.4%). Spanish exports also rose (by 8.9%), totalling €17.646 billion.

The number of people unemployed and registered as such at the Catalan Public Employment Service (SOC) at the end of September increased by 5,641 people compared to the August figures, a growth of 1.27%, according to data released on Tuesday by the Spanish Employment Ministry. In total, last month there were 451,081 jobseekers. In annual terms, there are 62,106 less people on the SOC lists, a 12.1% drop in comparison to September 2015. In the whole of Spain, unemployment increased by 22,801 people in September and the number of people officially registered as jobseekers reached 3,720,297 individuals. However, within the last 12 months, unemployment in Spain decreased by 373,745 individuals, a 9.13% improvement over September 2015.

Catalonia has the “cultural capital” and the “knowledge” to promote a new model of production, more sustainable than the “obsolete” one. This is the main conclusion of a lecture given at the conference “A new Economic Paradigm for a Sustainable Catalonia’ by economist Jeremy Rifkin organized on Wednesday in Sant Cugat, a city near Barcelona, by the Public Diplomacy Council of Catalonia (Diplocat). According to the sociologist and political advisor, Catalonia has the potential to “lead the way of Regional Europe” to the ‘Third Industrial Revolution’. Rifkin predicts an economic paradigm shift as a result of two merging factors: Internet technology and renewable energies, which will create a powerful Third Industrial Revolution where people will produce their own green energy and will share it on a sort of “Energy Internet”, in the same way we share information today.

Neither ‘Brexit’ nor the lack of a government in Spain seem to have affected the progress of the Catalan economy, which registered 3.5% growth at the end of the second quarter of 2016 compared to the same period last year. According to figures released this Thursday by the Catalan Finance Ministry and the Catalan Statistics Institute (Idescat), the pace of growth in  the second quarter was 0.8% in terms of GDP, the same figure registered in the previous quarter. Regarding the economic sectors, industry registered the highest growth, even higher than the Eurozone average. Considering these figures, the forecasts for the whole of 2016 made by the Catalan Department for Economy may have to be revised upwards, since in May the body estimated a 2.9% growth for the whole year.

Alstom, a French developer and marketer of systems, equipment and services for the railway sector, is to hire one hundred new people for the first time in many years. These new employees will work at the Santa Perpètua de Mogoda plant (in the Vallès Occidental area, next to Barcelona), and the contracts will begin to be made from September 2016 until the end of the year. These posts will be added to the already existing 550 direct employees and 250 indirect jobs. The President of Alstom Spain, Antonio Moreno, stated that another novelty is a 30,000-metre-square park for suppliers, in which suppliers can interact with the process, which will become more streamlined. Moreno also explained that workload is guaranteed for the coming two years, and the company already works on transport systems in many foreign countries. By 2017, Alstom will also be more digitalised, utilising tools such as tablets and virtual reality.

The stability of the parliamentary term in office and the relationship between the Catalan Government and the radical left-wing party CUP are at risk after the latter decided on Tuesday to maintain its total opposition to the 2016 draft budget bill. The Catalan Vice President and Catalan Minister for Tax Office, Oriol Junqueras, said that the decision will have “extremely severe consequences” and that “social services” will be particularly affected. The Catalan Government spokeswoman, Neus Munté, warned that the stability of the current term was “hit” and regretted that CUP didn’t respect the agreement with the pro-independence cross-party list ‘Junts Pel Sí’, the main party in the Parliament, through which they committed to “guarantee parliamentarian stability”. Munté also warned that CUP’s veto “will have consequences” but emphasised the government’s aim to “continue working to put Catalonia at the gates of independence”. CUP’s rejection of the bill, which they considered insufficient and still too “autonomic”, forces the Catalan Government to extend the 2015 budget.

Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras “totally” rejected the idea that Catalonia will face new elections if pro-independence radical left CUP reject the draft budget for 2016 presented by the Government. In an interview with Catalunya Radio, he urged pro-independence cross-party list ‘Junts Pel Sí’ and CUP to “make the most of the 72 seats majority in the Parliament” rather than thinking about potential new elections. Junqueras also refused to start negotiating with other groups in the Catalan Chamber if CUP keeps up their veto on the bill, as it would mean “renouncing the pro-independence roadmap”.

The draft budget for 2016 presented by Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, doesn’t have enough support to be passed by the Parliament. Although Junqueras described the budget as “realistic”and “socially committed”, pro-independence radical left CUP considered it insufficient and still too “autonomic”, and claimed that the draft didn’t “reflect the pro-independence declaration proposal”approved by the Catalan Chamber on the 9^th of November. Thus, CUP presented their veto and urged the Catalan Government to present a new draft which would include the anti-capitalists’ proposals, such as disobeying the deficit target imposed by the Spanish executive and carrying out a deeper reform of the tax system. Catalan President, Carles Puigdemont, warned that in order to “complete the task”and put Catalonia “at the gates of independence”the Parliament should at least be allowed to process the budget. This Friday, Puigdemont accused CUP of being “destroyers”if they continue to be carried along by “ideological prejudices”and maintain their veto on the bill.

There won’t be any agreement on the draft budget for 2016 unless the Catalan Government presents a new proposal including radical left CUP’s “proposals, demands and points of view”. This is what CUP MP, Eulàlia Reguant stated this Tuesday after registering theamendment to the entire budget proposal that the Catalan Vice President and Minister of Economy, Oriol Junqueras, presented last week. One of the anti-capitalists’ demands is to disobey the Spanish Government deficit targets and promote “more ambitious” tax reforms. On the other hand, the Catalan Secretary for Economy, Pere Aragonès warned that it’s “necessary” to pass the budget in order to put Catalonia “at the gates of independence”.

The Catalan Government’s total projected spending for 2016 amounts to €23.7 billion, 1.5% higher than last year’s bill and sets a deficit equivalent to 0.7% of Catalonia’s GDP, the same as that for 2015. Catalan Vice President and Minister for Economy Oriol Junqueras handed the proposal this Tuesday to the Parliament’s President, Carme Forcadell.According to Junqueras, the 2016 budget is “the most realistic and social-oriented budget ever”. After presenting the draft, Junqueras met with representatives of all the groups in the Parliament except for pro-independence radical left CUP. The anti-capitalist group, who have a ‘stability agreement’ with the governing party, declined the invitation in protest against the police baton charge that occurred this past Monday in Barcelona’s Gracia neighbourhood after the eviction of a social centre.

The Catalan Government’s budget for 2016 has been drafted and €700 million more is to be allocated to social spending compared to the budget of 2015, according to the Catalan Vice President and Minister for Economy Oriol Junqueras. He also stated that the Health sector will see an increase of €317 million, while the Education budget will increase by €211 million and that of Social Services will grow by €173 million. An additional 50 million more euros are to be allocated to the sectors of Universities and Research, stated the Catalan Vice President. The budget will be increased for the first time in many years, with the goal of being “realistic” and avoid “generating expectations that cannot be satisfied”. The budget will be delivered this Tuesday to Parliament’s President Carme Forcadell and opened for discussion amongst the groups in the Catalan Chamber.

Catalan Vice President, Oriol Junqueras met this Thursday with his Spanish counterpart Soraya Sáenz de Santamaría in what Junqueras described as a “very cordial but very difficult” encounter. One of the main subjects laid on the table revolved around the recent suspension of several Catalan laws by the Spanish Constitutional Court (TC). In reference to this, Junqueras accused the TC of acting according to “political interests” rather than considering those of the citizens and asked Sáenz de Santamaría to reconsider the suspension of the Catalan law against energy poverty, as they announced a few weeks ago. Junqueras regretted that the Spanish executive is only temporary “when it is in their interest”. Junqueras, who is also Catalan Minister for Economy and Tax Office, also referred to Catalonia’s deficit target set by the Spanish government and described it as “unfair, arbitrary and far from what citizens deserve”.

The Catalan vice president and Catalan Minister for Economy and Tax Office, Oriol Junqueras, stated that the Government “won’t make any cuts”and emphasised that Catalonia already allocates 70% of its budget to social policies and that 90% of the Government’s expenses are final. Junqueras’ statements come after the Spanish Finance Minister, Cristóbal Montoro, sent a letter to several Autonomous Communities in Spain urging them to “comply with the budget stability”. Montoro also nuanced that Catalonia’s deficit target in 2015, which was 2.7%, surpassed the maximum deficit established by the Spanish government by 0.7%. “If the Spanish Ministry wants to make cuts or shut down hospitals, it will have to come and do it itself”, warned Junqueras. He also emphasised that “the Spanish Finance Ministry has imposed so many cuts in the last years that any additional ones are simply inapplicable”.

The Zurich Insurance group will establish its new global data centre in Barcelona, as was divulged by the company CEO Vincente Cancio last Thursday. The opening of the global data centre, which is a two-year project, will establish 200 jobs. These positions will add to the existing 250 which the Zurich Group has already created in Barcelona. The company has over 2,000 employees and more than 130 years of presence in Spain.