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The Catalan Parliament has approved the same declaration that the Spanish Parliament rejected 2 weeks ago with 104 votes out of the 135 MPs. The text urges the Spanish and Catalan governments to talk and agree on the organisation of a legal self-determination vote in Catalonia. The Catalan Socialist Party (PSC) presented the proposal, which also received the votes from the Centre-Right Catalan Nationalist Coalition (CiU) – which runs the Catalan Executive, the Left-Wing Catalan Independence Party (ERC) and the Catalan Green Socialist and Communist Coalition (ICV-EUiA). The radical left-wing and independence party (CUP) abstained. The People’s Party (PP), which runs the Spanish Government, and the anti-Catalan nationalism Ciutadans (C’s) opposed the vote.

Earlier this week the Director of the Public Prosecution Office of Catalonia, Martín Rodríguez Sol, was pushed to resign by his boss at a Spanish level, who is directly appointed by Spain’s Government. Rodríguez Sol said in an interview that it was “legitimate” to “allow the people” to decide on their collective future regarding Catalonia’s self-determination process. However, he emphasised that he was not supporting an independence referendum as such because “it does not fit into the current legal framework”, but he suggested that a “legal vote” could be held with the appropriate question being asked. He also stated that legal frameworks should be connected to social realities and should have the option to be changed. On Thursday six members of the European Parliament, representing four Catalan parties, filed a question to the European Commission about the case.

The President of the Catalan Government, Artur Mas, accused the Spanish Government of “not having the true will to talk” about Catalonia’s self-determination claims, backed by democratically-expressed ballots. After the weekly Cabinet Meeting, the Deputy Prime Minister, Soraya Sáenz de Santamaría, confirmed that the Spanish Government will take the Catalan Parliament’s declaration, which states that the Catalan people are sovereign to freely and democratically decide on their collective future and therefore organise a self-determination vote, to the Constitutional Court. The Spanish Government justified its decision by stating that the declaration – with no direct legal impact – might have legal consequences and wants the Court to “clarify that the Catalan people are not sovereign”.

The Catalan Executive has provided details of how it will adjust €4 billion of its 2013 budget in order to meet the deficit target imposed by the Spanish Government. Besides the 1 billion tax increase already announced, the Catalan Executive will have to implement further budget cuts. On Thursday it will present its austerity plan for 2013 to the unions, which will affect all public employees, in order to save €700 million. As last year, public employees will not receive 7% of their annual salary, corresponding to part of the summer and Christmas bonuses. According to the unions, 3,000 civil servant posts will remain empty and 10,000 substitution contracts will not be signed.

Following a report by its own legal services, the Spanish Government is considering appealing against the ‘Declaration of sovereignty and the right to self-determination by the people of Catalonia’, approved by the Catalan Parliament two weeks ago. This declaration states that, following the historical rights and the free self-determination of the people, the people of Catalonia are sovereign and therefore able decide on their own future and organise a self-determination vote to decide on Catalonia’s hypothetical independence from Spain. The Catalan President stated that, before the self-determination right of the people, “there are no rules, laws, constitutions or possible interpretations”.

The Cercle d’Economia, the main Catalan economic forum open to businesspeople and academics, has published an opinion note on the political context following the last Catalan elections. In the note, the Cercle asks the Spanish Government “to talk” about the Catalan self-determination and “to reform” the Constitution accordingly. The Cercle does not explicitly back an independent Catalonia but it supports a deep reform of Spain’s territorial organisation and the finding of a negotiated solution for both parties, which may be reached through a legal referendum. In addition, the Cercle asks for a review of Spain’s internal distribution of the deficit targets among government levels and to increase those of the Autonomous Communities.

Oriol Pujol, the Secretary General of the CDC, the Liberal party within the Centre-Right Catalan Nationalist Coalition (CiU), “fully denies” the accusations and hopes he will not finally be indicted. However, he stated that “nobody within the CiU will be an obstacle to Catalonia’s self-determination process”, indicating that if he is formally accused of influence peddling in the end, he might temporarily step down from the political front-line. The anti-corruption prosecutor suspects that Pujol participated in the plot to irregularly allocate licenses for technical vehicle inspection garages. After the President of the Catalan Government, Artur Mas, and the leader of the Christian-Democrat side of the CiU, Josep Antoni Duran i Lleida, Oriol Pujol is the coalition’s ‘number 3’ and Chairman of the CiU’s group in the Catalan Parliament.

The Parliament of Catalonia has approved an historical declaration of sovereignty claiming the right to self-determination by the Catalan people. The full text is included in this news item. The declaration paves the way for the organisation of a self-determination referendum on Catalonia’s future within Spain and its hypothetical independence. It was supported by 66.4% of the MPs who voted, representing 63% of the total parliament. These supporters came from 4 different groups. 2 MPs abstained because the declaration does not include other Catalan-speaking territories and five Socialist MPs did not vote as a protest because their party is officially opposed to the declaration. Those opposing the declaration included 32% of the MPs who voted, representing 30.4% of the total chamber.

If the Spanish Government had honoured its legal commitments and did not “centrifuge the deficit” towards the Autonomous Communities, the Catalan Government would have ended 2012 with a deficit of 1.53%, according to the Catalan Finance Minister, Andreu Mas-Colell. Instead, the Catalan Government had a deficit of 2.3%, 0.8 percentage points higher than the 1.5% deficit target. In any case, Catalonia’s deficit still decreased from 3.99% in 2011 to 2.3% last year, a reduction representing €3.48 billion, despite the recession, the consequent drop in tax collection and paying €1.72 billion in debt interest. In the last 2 years, the Catalan Government has reduced its expenditure by €4.2 billion, representing a daily reduction of €5.7 million.

The Catalan Government has created a Treasury Secretariat within its Finance Ministry, which will be in charge of managing revenue, with the objective of developing Catalonia’s own tax office. The creation of a treasury of its own would allow the Catalan Executive to collect all the taxes generated in Catalonia, as Navarra and the Basque Country have been doing for decades. It is one of the electoral promises of the governing Centre-Right Catalan Nationalist Coalition (CiU) and is also part of the parliamentary stability agreement reached with the Left-Wing Catalan Independence Party (ERC). A Catalan tax office collecting all the taxes is an historical claim of a large part of the Catalan society. However the Secretariat created is in line with the CiU’s strategy of creating state structures and it has been criticised by the pro-Spanish unity parties.

The Catalan Parliament has voted Artur Mas, leader of the Centre-Right Catalan Nationalist Coalition (CiU), in as President of the Catalan Government with the votes of his own group and those of the Left-Wing Catalan Independence Party (ERC). Mas has been re-elected in the first vote with an absolute majority of 71 affirmative votes from the 135 MPs. The rest of the opposition voted against him for two different main reasons: either because they opposed the budget cuts despite supporting the organisation of a self-determination referendum or because they opposed Catalonia’s self-determination altogether. Mas based his campaign on two main pillars: fighting the economic recession and the public finance crisis and pursuing “Catalonia’s national transition”.

Artur Mas, the leader of the Centre-Right Catalan Nationalist Coalition (CiU), and Oriol Junqueras, President of the Left-Wing Catalan Independence Party (ERC), have signed the parliamentary stability agreement, which includes the call for a self-determination vote by citizens and the modification of taxation in order to increase revenue. Mas will be re-elected President of the Catalan Government and the ERC will not sit in the Executive but will offer parliamentary support on the agreed issues. The CiU and the ERC are asking for other parties to add their support to the self-determination vote. In addition, they have stated that the taxes created with the sole aim of collecting more money will be temporary. Despite the electoral mandate, the Spanish Government totally opposes the referendum and is threatening the Catalan Executive with economic asphyxia.

The Centre-Right Catalan Nationalist Coalition (CiU) and the Left-Wing Catalan Independence Party (ERC) have reached a definitive agreement ensuring the next Catalan Government parliamentary stability to approve the main laws. The CiU leader Artur Mas will be re-elected President of the Catalan Government with the ERC’s vote in the Catalan Parliament by the end of the week. However, the ERC will not sit in the Cabinet and will only offer support on the agreed issues. The last point blocking the agreement was the CiU’s refusal to set a specific date for a self-determination referendum. Finally, they have agreed on calling for a citizen vote on Catalonia’s independence from Spain in 2014. However, the CiU has managed to include a clause postponing the voting call if both parties explicitly agree to do so.

With this decision, the Catalan Government wants “to safeguard” its power to adopt this type of tax or the equivalent revenue, after the Spanish Government announced the creation of its own tax while keeping it at 0% to prevent the Autonomous Communities from approving it. The Constitutional Court has already backed the taxes on bank deposits created by Extremadura, Andalucía and Canarias. Catalonia’s tax will not affect clients but only the banks. It will affect all banks operating in Catalonia, independent of where they are based. In addition, it will have retroactive effects as from the 30th of November. The Spanish Finance Minister warned that the Spanish Government will fully oppose it.

The 10th legislative term of the Catalan Parliament kicked off with the election of the chamber’s Bureau, a preliminary step before voting for the President of the Catalan Government. The Speaker will now hold talks with party leaders to analyse support and designate a candidate for Catalan President. Following last week’s agreement among 5 of the 7 parties sitting in the chamber, Núria de Gispert, from the Centre-Right Catalan Nationalist Coalition (CiU), has been re-elected as President of the Catalan Parliament. The CiU, the Left-Wing Catalan Independence Party (ERC), the Catalan Socialists (PSC), the People’s Party (PP) and the Catalan Green Socialists and Communists (ICV-EUiA) have split the rest of the Bureau’s offices. The two smallest parties, the anti-Catalan nationalism ‘Ciutadans’ and the radical left-wing and independence party CUP have been left out of the Bureau.