foreign

The members of the new Catalan executive took office this Thursday, more than three months after the 27th of September Catalan Elections resulted in the victory of pro-independence forces. Catalan President, Carles Puigdemont, called them to be “aware” of the citizens’ assignment “without renouncing anything”. ERC’s leader Oriol Junqueras has been designed to assume the Vice presidency and led the Department of Economy and Tax Office, one of the key areas of the new executive. Another novelty is the creation of the department for Foreign Affairs, which will be led by former MEP and ‘Junts Pel Sí’s top member, Raül Romeva.

The results of the 20-D Spanish Elections and the negotiations to form a new government in Catalonia, which are still ongoing, are worrying the business world. During the celebration of the eighth edition of the Carles Ferrer Salat Awards, which recognise remarkable initiatives in the business world, Foment del Treball’s president Joaquim Gay de Montellà highlighted the difficulties in forming “stable and strong” governments. “Everything would be easier if it would have been possible to start a dialogue process” he stated in a speech before current Catalan President Artur Mas and the Spanish Minister for Foreign Affairs, José Manuel García Margallo. Gay de Montellà also announced that “the risk of recession has moved away and the economy is running”.

Companies, entities and citizens have European funding opportunities at their disposal to make their projects grow. To promote these EU resources and facilitate access to them, the Catalan government has launched a website which includes the available European funding opportunities and the calls for entry in progress. “We must break the myth of a lack of access” to the EU institutions, stated the Catalan Permanent Representative to the EU, Amadeu Altafaj, and added that “they are more open and more accessible than what people may think”. The Catalan Foreign Affairs Secretary, Roger Albinyana, encouraged everybody to “make the most of the European funding opportunities” and called Catalans to be “even more ambitious”.

On the day after the Spanish Constitutional Court (TC) suspended the Parliament's declaration to start the independence process and the same day that the official notification arrived at the Parliament, Spain's King Philip VI has guaranteed Spain's unity. "The Constitution will prevail" he stated and added that Spain "won't allow that its unity could be questioned, as it is the base of its people’s peaceful and free coexistence". "It is not the time to go back to the past" stated Spain's King "but to reaffirm ourselves in our compromise with a present and a future full of shared progress and democratic coexistence". "As head of the State" he concluded "I will always be by all Spanish citizens' side". Spain's King made these statements during a ceremonial event of the 'Marca España' ('Spain Brand') initiative, during which many personalities from the cultural, economic and sporting spheres were honoured by Spanish Minister for Foreign Affairs, José Manuel García Margallo. 

The Swiss executive will only mediate between Catalonia and Spain “if all the parts explicity request it”. This was the answer of the Swiss government to the question posed by Swiss MPs from several parties whom asked what would be Switzerland’s role regarding Catalonia’s push for independence. “Considering Switzerland’s neutrality and democratic tradition would the Federal Council propose our country’s good manners to ensure mediation between Madrid and Barcelona?” Swiss MPs asked their executive on the 22^nd of September. The answer of the Swiss government reflected that “Catalonia’s pro-independence aspirations affect Spain’s internal politics”and therefore “the possibility of a Swiss intervention isn’t planned”. The Catalan Foreign Affairs Secretary, Roger Albinyana, celebrated the Swiss proposition as “it is the first international actor”to highlight the “lack of dialogue”of the Spanish government. 

During the second trimester of 2015, foreign investment in Catalonia grew by some 422%, reaching €1,302 million. “We have grown more than ever and we have become a point of reference in Europe” stated Catalan Minister for Business and Employment, Felip Puig. “These results show the world how diversified and solid our economy is” he added. During the first trimester this year, Catalonia was the leading region in Continental Western Europe in terms of investment, both in total amount of investments attracted and in the amount of jobs generated. This growth is much higher than the Spanish average; foreign investment in Spain in the second trimester of 2015 was only 73% higher than that recorded during the same period last year. 

Republican Dana Rohrabacher, chairman of the House Subcommittee on Europe stated that he sees “no reason why people in Catalonia cannot have their own choice of whether they want to be part of Spain”. He made this statement during a meeting with the Catalan Government’s Secretary for Foreign and European Union Affairs, Roger Albinyana, and Head of the Foreign Action Committee of the Catalan Parliament, Jordi Solé. Rohrabacher emphasised that “it’s better to let people decide and for them to choose to remain in the country, instead of making them feel they are being forced to stay”. Earlier in the week, 31 MEPs from 14 different member states sent a letter to the Spanish Defence Minister in which they urged him to “rectify” his position on Catalonia. Regarding the Minister’s declarations, the MEPs asked him to make it clear that Spain’s army won’t interfere in a situation which they described as “pacific and democratic”.

Roger Albinyana was invited to attend a meeting of the Commission of International Affairs of the Latin American country to discuss the independence process in Catalonia, the reasons behind it and what could happen after the 27th of September election. The Catalan Foreign Affairs Secretary appeared before the Commission, despite reported “pressure” from Spanish diplomats to cancel the event. The spokesperson for Liberal CDC in the Spanish Senate, Josep-Lluís Cleries, urged Spanish Minister José Manuel García-Margallo to clarify whether his embassy in Montevideo had tried to cancel the appearance. It’s the third time that a foreign country has convened a debate about the independence process in Catalonia, following similar events in Denmark and Ireland.

Catalonia is experiencing a very positive tourism season. The number of foreign tourists visiting the country last month rose by 9.12% in comparison to July 2014 and totalled 2,340,299, the highest number since statistics from the Spanish Ministry of Industry, Energy and Tourism started. Gaudí, the magical beaches of the Costa Brava and the rural settings of the Pyrenees are attracting an increasing number of international tourists, whom are boosting business. Catalonia is, once again, the most visited Autonomous Community, attracting 26.6% of the total number of tourists visiting Spain.

The number of foreign tourists visiting Catalonia continues to increase year after year. On Wednesday, the Spanish Ministry of Industry, Energy and Tourism released the figures for foreigners visiting Spain between January and June 2015. 7,439,211 international visitors came to Catalonia in that period, the highest number ever and a 4.4% increase on the figures from the previous year (when 7.1 million foreigners came). In addition, Catalonia also led the destination ranking within Spain, attracting 25.5% of all 29.2 million international tourists visiting the country during the first six months of the year (a 4.2% increase on 2014 figures). In the month of June, 1.71 million foreign visitors came to Catalonia, a 1.8% increase compared to last year and representing 25.6% of all international tourists travelling to Spain in that month.

The Catalan Government has presented a decree, pending approval "in the coming months," that will regulate up to eight types of tourist accommodations, including new types that until now were not contemplated by the law, like motorhome areas, casual Bed & Breakfasts and informal rentals. The decree is an effort to quell the rapid expansion of tourist accommodations in newer platforms – like the Internet service Airbnb – and bring already-existing establishments under control.  The Catalan Minister for Business and Employment, Felip Puig, said all establishments must be registered. For Bed&Breakfasts and Airbnb rentals (or similar platforms) its users must pay a tourist tax of 0.65€ in Barcelona and 0.45€ in the rest of Catalonia. In addition, the City Councils will determine which areas can be used for placement of accommodations.

Between 1993 and 2014, a growing trend of foreign investment was registered in Catalonia, a study by Barcelona’s Chamber of Commerce shows. This upward trend continued unbroken in the long-term, not even being interrupted by the decline of -15.8% recorded in 2014. According to the study, it is not possible to conclude that – over the period analysed – investment in Catalonia "has been adversely affected by the political context", in particular the Catalan self-determination process. In addition, for 2015 – even after just the first few months of the year have passed – the business environment seems to suggest that investment in productive capacity will be higher than in 2014.

"Between 2015 and 2016 the Catalan Government will open new Trade & Investment offices in Belgrade, Tehran, Accra, Tel Aviv and Lima and enlarge its San Francisco-based one", Catalan Business Minister, Felip Puig, announced on Monday. Similarly, the Catalan Executive recently launched a new 'technological antenna' in Boston (Massachusetts) and will soon do the same in Panama, Kazakhstan, Kenya, Senegal and Angola, enlarging its network of business promotion offices abroad. The Minister said that in 2014, Catalan companies exported more than 51% of the Catalan Gross Domestic Product and the Executive is set on further enhancing their internationalisation. "Official data seem to confirm that companies with a stronger global presence suffered the economic crisis less and the Government wants to support them", he concluded.

Veremonte has walked out on the BCN World project, the largest holiday resort in Europe based in the Costa Daurada, near Tarragona, as first announced by the Catalan Business Minister, Felip Puig, on Thursday and later confirmed by the company itself. However, Puig has assured that this will not impede the project's continuation as companies such as Melco, Hard Rock, Grup Peralada and Value Retail remain committed to it. Veremonte did not provide any further details about its decision. The investment company was initially leading the initiative and had reached an agreement with La Caixa bank to buy 500 hectares of land in 2012. However, it missed the final deadline last December to do so and the Catalan Government had to jump in to guarantee the project's continuation, reaching an agreement with La Caixa for the land. However, Veremonte was still linked to the initiative through the casino licences' tender, which it bidding for in partnership with Hard Rock and Melco.

SEAT President, Jürgen Stackmann, has shown "great optimism" for the future competitiveness of the company's plant in Martorell (Greater Barcelona). In early May, the Volkswagen group, to which SEAT belongs, announced it will invest €4.2 billion in two of its factories, those in Catalonia and Navarra, over the next four years. The investment will be used to upgrade the existing facilities and increase competitiveness, in order to assemble a greater number of models. However, it was not disclosed how this billionaire investment will be split among the two factories. During a conference held on Wednesday in Barcelona, Stackmann did not say how much of this investment would go toward the Catalan plant. The SEAT president said the company is changing its focus toward a more mature, adult market across Europe in order to cement the future success of the carmaker.