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Rajoy further recentralises powers: Catalan Government to need permission to back companies

June 8, 2015 09:54 PM | ACN

In times of economic crisis, the Mariano Rajoy-led Spanish Government has been making recentralisation a main driver of its political agenda, using the economic recovery as the reason for passing the reforms. An additional step in this direction was taken on Monday with a new regulation forcing Spanish Autonomous Communities to seek permission from the Spanish Ministry of Finance before granting loans and guarantees to private companies located in their territories. From now on, Madrid's permission will be conditional upon the applicant's compliance with deficit targets. The new regulation substantially curbs the Autonomies' powers to shape their industrial policies, following a reform passed in May that modifies both the Organic Law for Financing the Autonomous Communities and the Organic Law on Budgetary Stability and Financial Sustainability.

Veremonte quits BCN World but plans for the multibillion casino, hotel and shopping resort go on

June 4, 2015 09:40 PM | ACN

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.

Barcelona Southern Europe’s most attractive city to invest in, according to EY

May 27, 2015 09:26 PM | ACN

The Catalan capital is Europe's 8th most attractive city to invest in and the highest-ranked city located in the southern part of the continent, according to the international consultancy firm Ernst & Young. London, Paris, Berlin, Frankfurt, Amsterdam, Brussels and Munich come first in the European ranking and are followed by the Catalan capital, ahead of Madrid, which comes in 10th position. EY highlights the fact that Barcelona has attracted "enough" international business projects to confirm its place among Europe's top 10 most attractive cities for foreign investment. Catalonia ended 2014 with 108 direct foreign investment projects, a 27% increase on 2013 figures. These projects created 7,089 new jobs. EY stressed that none of the 7 cities ahead of Barcelona were able to transform direct investment into the creation of so many new jobs. London was the closest contender, creating 3,470 jobs, half of that of the Catalan capital.

Catalan Government warns about "extreme" liquidity situation and accuses Spanish Executive of financial "asphyxia"

May 27, 2015 01:03 AM | ACN

The Catalan Government has sent another warning message about its lack of liquidity, which depends on the Spanish Executive’s regular transfers since most taxes are collected by Madrid-based services. The Catalan Minister for the Presidency, Francesc Homs, accused the Spanish Government of "deliberate asphyxia" and asked the rest of the Catalan parties to "pool together" to denounce the situation. According to Homs, such financial asphyxia will affect everything except salaries. All Catalan Government departments will be affected and their payments to service providers will be delayed. The Catalan Finance Minister, Andreu Mas-Colell, already warned about this financial asphyxia on previous occasions. In the coming days, Mas-Colell will meet with the rest of the parties to discuss the situation. However, the Spanish Finance Ministry rejects the accusation and has stated that it has made all the pending transfers.

Construction begins on Ferrari’s first theme park in Europe, expanding Catalan resort PortAventura

May 7, 2015 11:21 PM | ACN

Sebastian Vettel, Ferrari Formula One Team Driver, together with the President of the Catalan Government, Artur Mas, have set on Thursday the symbolic first stone of the company’s first theme park in Europe, which will be an expansion of PortAventura, the main amusement resort in Catalonia, located on the Costa Daurada and near Tarragona. Ferrari Land is expected to be ready by the end of 2016, after an initial investment of €100 million. It is likely to become PortAventura’s main attraction and is expected to make the Catalan holiday and amusement resort reach 5 million visitors per year. Once Ferrari Land is operational, it will employ about 150 people, in addition to PortAventura’s staff. The project also includes a 5-star hotel themed around the Ferrari brand, but this will be built during a second stage.

Catalan Government posts 2.13% deficit for 2014, higher than 1% target, due to lack of revenue

March 19, 2015 10:32 PM | ACN

The Catalan Finance Minister, Andreu Mas-Colell, has announced a €4.23 billion deficit for 2014, representing a 2.13% deficit, significantly higher than the 1% target imposed by the Spanish Government. Mas-Colell stressed that spending went as planned, but revenue was far from the expected result, obtaining €1.91 billion less than expected, since the Spanish Government reduced the Catalan Executive's funds by €600 million. In addition, it has not shared with the Autonomous Communities all the money from the revenue increase of 2014 which came due to the economic recovery. "We have not seen a single euro of this additional revenue", complained Mas-Colell, who estimated that €900 million of this money should have gone to Catalonia. In addition, he has always argued that a 1% deficit for 2014 was not realistic and that it was "illegal", after filing a complaint to the Supreme Court.

Agreement on Catalan Government’s 2015 budget after increasing social spending by €100 million

January 26, 2015 10:21 PM | ACN

The governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC have reached an agreement to approve the Catalan Government’s budget for the current year. After the President of the Catalan Government and CiU leader, Artur Mas, and the ERC’s President, Oriol Junqueras, reached an agreement on holding early elections on 27 September as a plebiscite on Catalonia’s independence, both parties reopened the budget talks. After 10 days of negotiations, they have reached a definitive agreement, which includes a €100 million fund that will bring more resources for social programmes. They have also agreed to stop paying some allowances to senior officials. Furthermore, they will add €10 million to the development of Catalonia’s own tax administration and they will also create the Agency of Social Protection, which is to manage Catalonia’s Social Security system.

Catalonia requests €9.46 billion in loans from Spanish Government’s Liquidity Fund for 2015

January 20, 2015 11:53 PM | ACN

The Catalan Government has formally requested €9.46 billion in loans from the Liquidity Fund for the Autonomous Communities (FLA), run by the Spanish Finance Ministry, to face debt payments and other obligations during 2015. This is the only way that the Spanish Government authorises the Catalan Executive to request liquidity as it has banned Catalonia’s access to financial markets to obtain additional funds, as many governments do when they issue bonds or ask for loans. Therefore, the FLA has become the Catalan Executive’s only bank and a source of funds that must be returned. However, for the first time this year, the Spanish Government will not make money on the FLA and has set a 0% interest rate, which will have a €300 million positive impact on the Catalan Executive’s budget.

Catalonia will not have to pay interest on Spanish Government loans from 2012 to 2015

December 24, 2014 01:21 PM | ACN

The Spanish Finance Minister, Cristóbal Montoro, has confirmed a new fiscal measure to increase the Autonomous Communities’ revenue, benefiting the Catalan Government as well. After the Council on Fiscal and Financial Policies (CPFF) held on Tuesday evening, Montoro confirmed that interest rates will be set at 0% for the loans given to the regional governments since 2012 through the Liquidity Fund (FLA). The measure will also be in place for 2015. However, the Autonomous Communities that have already met the deficit targets will also be granted a 0% rate for 2016 and 2017. The Catalan Government welcomes the measure but is sceptical about its details. The Catalan Finance Minister, Andreu Mas-Colell, demanded an entirely new funding scheme, since the current one expired a year ago. Montoro is not renewing the inter-territorial funding scheme and instead is using this loan system, which obliges regional governments to return the transferred funds.

Catalan President: Spain will negotiate if “the open conflict” generates “concerns” at international level

November 29, 2014 12:35 AM | ACN

The President of the Catalan Government, Artur Mas, confirmed that Spain and Catalonia are already now in a situation of “open conflict”, after the criminal prosecution launched against him and two other members of his Cabinet. However, Mas asked the Spanish Government to end its “angry” attitude and start negotiating, proposing ways out of the current situation. The Catalan President added that the international community will ask the Spanish Government to sit and talk if the current open conflict finally generates “concerns” at an international level. Mas was addressing an economic forum with the main representatives of Catalonia’s business community. The Spanish Minister for the Economy, Luís de Guindos, was also present and they were in friendly conversation for a little while. De Guindos emphasized that the Spanish Government has issued “bailouts for Catalonia in difficult moments”.

Barcelona Meeting Point 2014 prepares for a ''mass influx'' of international funds ''ready to buy''

October 29, 2014 09:25 PM | ACN / Nell English

The 18th Edition of the Barcelona Meeting Point will take place between 29 October and 2 November in Fira de Barcelona's Montjuic venue. The trade fair is a real estate exhibition that brings together buyers and sellers to network and learn about the latest industry trends. This year there will be 265 participating companies from 23 countries. According to the show’s President, Enric Lacalle, it will be the first edition to open in a recovering housing sector, after 6 years of crisis and setbacks. The real estate market is strengthening; there was a 36.6% increase in the acquisition of houses by foreigners in 2013 and a 12.5% rise in housing sales throughout Spain. In addition, real estate investment in Barcelona is expected to exceed €1.6 billion in 2014, 30% more than last year. In fact, 21 international investment funds will participate in the trade fair. The show will also include a series of talks and presentations, and offer financing options for property purchase.

Catalan Government will not meet 1% deficit target for 2014, imposed by Spanish Executive

July 31, 2014 09:36 PM | ACN

On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, admitted that Catalonia will not be able to meet the strict 1% deficit target imposed by the Spanish Government for 2014. In fact, the Catalan Executive had previously warned on several occasions that this deficit target was not realistic, despite the great austerity efforts undertaken over the past four years. In addition, despite Spain's economic recovery of 2014 – which is led by Catalonia – and therefore the increase of taxable activity, the Spanish Government will reduce the Catalan executive's funds by €500 million this year while the deficit target becomes stricter. On Wednesday, the Catalan President, Artur Mas, already stated that, considering the austerity measures adopted since 2011, further budget cuts cannot be undertaken in 2014 without dramatically damaging basic public services such as healthcare and education. Instead of relaxing the deficit target or transferring pending funds and debts to the Catalan Government, the Spanish Finance Ministry will reduce the interest rate that the Autonomous Communities have to pay back to 1% for the loans of the Liquifidity Fund (FLA).

Rajoy doesn't offer an alternative and Catalan President will call self-determination vote anyway

July 30, 2014 09:29 PM | ACN

The President of the Catalan Government, Artur Mas, and the Spanish Prime Minister, Mariano Rajoy, finally met this Wednesday in Madrid to talk about the self-determination process and also about economic, social and institutional issues. Mas told Rajoy that a majority of the Catalan Parliament plans to hold a self-determination vote on the 9th of November and they want to do it "reaching an agreement with the Spanish Government and within the legal framework". However, if Rajoy rejects negotiating such an agreement, Mas will use the Catalan legal framework to organise a legal vote. Rajoy emphasised that the consultation vote "is not legal and will not be legal" and therefore "will not take place". However, the Spanish PM did not present any alternatives to modify the current status quo. Besides, Mas presented Rajoy with a document with 23 issues not related to self-determination, such as Catalonia's under-budgeted public services, pending infrastructure works, and the Education Reform.

Microsoft's co-founder Paul Allen invests $40 million in Catalan e-voting company Scytl

April 7, 2014 10:12 PM | ACN

Paul Allen, who founded Microsoft together with Bill Gates, has invested $40 million in the Barcelona-based Scytl, which is present in 35 countries and is one of the most innovative e-voting companies at world level. Allen will join Scytl's shareholders through his investment fund Vulcan Capital. Vulcan Capital's Manager Abhishek Agrawal will join the Catalan company's Board. Agrawal praised Scytl's "key role" in upgrading electoral processes in cooperation with governments throughout the world. In fact, in the last 10 years the Catalan company has carried out e-voting commissions in the US, Canada, Mexico, Ecuador, France, Norway, Switzerland, Bosnia, India, Iceland and Australia. Since 2006 the company led by Pere Vallès has made profits and grown by 70% each year.

Second best year for foreign investment in Catalonia, up over 30% in 2013

March 20, 2014 08:59 PM | ACN

In Catalonia, direct foreign investment – excluding the stock-exchange –grew by 31.5% year-on-year to reach €3.51 billion in 2013, as indicated by a report from the Spanish Ministry of Economy and Competitiveness. According to the Foreign Investments Registry, with such a figure, Catalonia achieved its second best year in history, only surpassed by the €4.82 billion received in 2010. Besides, Catalonia accounted for 22.2% of all foreign investments in Spain in 2013, which amounted to a total of €15.81 billion, meaning 8.8% more than the previous year. The region of Madrid was the leading Autonomous Community in Spain for foreign investment attraction, receiving €8.64 billion, which is it to say 54.6% of the total amount. However Madrid's sum also represents a 7.1% decrease on 2012 figures.