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The Catalan Socialist Party (PSC) held this weekend an extraordinary meeting and approved the leadership’s proposal to oppose any initiative backing Catalonia’s self-determination that has not been agreed in advance with the Spanish Government. The PSC leadership wanted to lay the critics to rest but the crisis is far from being resolved. Critical PSC MPs do not rule out supporting a Catalan Parliament’s motion backing self-determination despite the leadership’s stance. The PSC is facing important internal tensions due to Catalonia’s self-determination issue, including tensions with the Spanish Socialist Party (PSOE) – to which they are federated. After several months of doubts, the PSC leadership decided to prioritise its relationship with the PSOE and distance itself from Catalonia’s right to self-determination, despite its electoral promises.

The Catalan Executive says it has the Spanish Government’s commitment to send the €1.76 billion that the Spanish Finance Minister, Cristóbal Montoro, announced in late October would not be transferred. This money corresponds to the loan to fund the Catalan Government’s deficit target increase from 0.7% to 1.58% in 2013 approved in July by the Spanish Executive. However, in late October – 10 weeks before the end of the year, Montoro said that this amount would be deducted from the fund to pay the Catalan Government’s service providers. This meant that Catalonia was missing €1.76 billion to fund public services and departments for the last part of the year. Negotiations during the last 4 weeks have modified Montoro’s October decision.

Writer Luís Goytisolo, who was born in Barcelona in 1935, was awarded on Thursday the 2013 National Prize for Spanish Literature. The € 40,000 prize is awarded each year by the Spanish Ministry of Culture to distinguish the entire literary work of one Spanish author. Luís Goytisolo, the youngest son in a family of writers, was one of the core members of the ‘Generación del 50’ (The 1950 Generation) in Barcelona. This post Spanish Civil War generation of writers, who are considered to be the ‘War’s Children’, have reflected on literature as the ultimate human art form and they have redefined its aesthetics. The Prize’s jury praised this Catalan writer, who writes in Spanish, for his “narrative work and his constant commitment towards expanding literature territory”.

The Argentinean Judiciary is investigating crimes perpetrated under Franco’s dictatorship in Spain, notably the execution of Catalan President Lluís Companys in 1940. Companys was the only incumbent president to have been executed during World War II. A few weeks ago, his political party (ERC) filed a complaint in Argentina in order for his speedy military trial to be declared null and void, as the Spanish institutions have refused to do so on numerous occasions. Spain’s Amnesty Law of 1977, which is still in force to this day, has always prevented Franco crimes from being investigated and from going to trial. In 2010, Spanish Judge Baltasar Garzón, who became internationally famous for investigating Argentinean and Chilean dictatorships, was disbarred from office after trying to open a case against Franco crimes. Therefore, the plaintiffs have appealed to universal Justice, seeking restitution in other jurisdictions.

Catalan language speakers are increasing their number and have exceeded the 10 million people mark, according to the latest report on the situation of Catalan. This means that 72.4 % of the population now speaks the language in the various areas of the Catalan linguistic community. In addition, 12.8 million understand it, representing 91.7% of the population. These latest figures confirm a consolidation trend, which paradoxically, is occurring in an unfavourable context, with an “adverse socio-political environment in territories outside Catalonia”. According to the report, the political and judicial “offensive” against Catalan are the main threats against the standardization of a language which, nevertheless, continues “to progress”.

The President of the Catalan Government, Artur Mas, has travelled to Israel heading a delegation including businesspeople as well as the Mayor of Barcelona, Xavier Trias, and the Catalan Minister for the Economy, Andreu Mas-Colell, among others. On Tuesday Mas met Shimon Peres, President of Israel, and on Monday the Finance Minister, Yair Lapid, who is also the Chairman of Yesh Atid (the second-largest party in the Knesset) and ‘number 2’ in Benjamin Netanyahu’s Government. With Peres, Mas talked about a federal European Union and Catalonia’s process of building its own state. With Lapid, who is a clearly emerging figure in Israel’s political landscape, Mas talked strictly about economic matters. The Catalan delegation also signed several agreements regarding scientific research and visited the Holocaust Memorial as well as the Wailing Wall.

The Catalan Socialist Party (PSC), which is federated to the Spanish Socialist Party (PSOE), has decided to harden its strategy towards Catalonia’s right to self-determination. In the PSOE’s extraordinary Political Conference, which took place last weekend, the PSC and the PSOE agreed not to break their union and to offer a more coordinated message. The PSC supports the Catalan people’s right to self-determination, but the PSOE totally rejects it. The compromise solution will be that the Catalan Socialists will stop making explicit contributions for an agreed self-determination vote in Catalonia and will focus on opposing any initiative in favour of Catalonia’s self-determination that has not been previously agreed with the Spanish institutions.

On Thursday morning most of Catalonia’s chemists’ were closed and their owners and employees were demonstrating on the street. They were protesting because neither the Catalan nor the Spanish Government is paying them on time for the prescribed drugs, which they have to buy in advance with their own money. It is the second time since October 2012 that they have been protesting for the same reason. The situation improved slightly a few months ago, but delays in the Spanish Government’s transfers of money to Catalonia have made the Catalan Executive unable to pay on time and a significant debt has accumulated. According to the chemists, they are owed €416 million, corresponding to the last 4 months.

The Parliament of Catalonia rejected a proposal to call for a “unilateral” self-determination referendum in the event that the Spanish State “blocked” the possibility of organising a vote by agreement. The motion was rejected with the votes of the Centre-Right Catalan Nationalist Coalition (CiU) – which runs the Catalan Government – and the three parties defending the unity of Spain: the Catalan Socialist Party (PSC), the People’s Party (PP) – which runs the Spanish Government, and the anti-Catalan nationalism and populist party Ciutadans (C’s). The motion supporting the idea of calling for a self-determination referendum in “a unilateral way” had been presented by the radical left-wing and independence party CUP, which has only 3 MPs in the 135-seat chamber. However it was also backed by the second-largest group, the Left-Wing Catalan Independence Party (ERC) and some of the MPs from the Catalan Green Socialist and Communist Coalition (ICV-EUiA).

Barcelona City Council and the Catalan Government’s programme ‘Invest in Catalonia’ are among the winners of the 2013 Financial Times’ Foreign Direct Investment (fDi) Innovation Awards, which “recognise the world’s most creative investment promotion agencies”. Barcelona City Council has received an award in the town-planning category thanks to its pioneering role in the development of smart cities: the Catalan capital has prioritised smart-city applications and projects, trying to become one of the world leaders in this category. In addition, ‘Invest in Catalonia’, a programme of the Catalan Government’s agency for business competitiveness ACCIÓ, received the award in the business matchmaking category.

The Catalan Government has presented its budget proposal for 2014, which posts a 1% deficit, representing a 35.5% annual reduction and amounting to €1.98 billion, in line with the 2014 deficit targets imposed by the Spanish Government. The budget prioritises healthcare, education and social policies, which represent 71% of the total non-financial spending. Non-financial spending grows by 0.2% and reaches €20.30 billion, while the total spending amounts to €29.31 billion. The Catalan Finance Minister stressed that spending had not been reduced this year since in the last 3 years it had already dropped by 22%. Budget cuts “have reached their limit”, as otherwise “social cohesion” and “the Welfare State” would “be at risk” he said. In 2014 the Catalan Executive will spend the same per inhabitant as it was doing in 2004 taking into account inflation (€1,901).The adjustment for 2014 focuses on increasing revenue by €3.2 billion, mostly through new taxes (€910 million) and the sales of assets and privatisations (€2.32 billion). On top of this, the Catalan Government forecasts a 0.9% economic growth for 2014, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%).

The Catalan Government has forecasted a 0.9% economic growth for 2014 in its budget proposal for next year, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%). The positive figures are mostly due to the strength of the export sector – which will continue to improve its results. The main factor slowing down growth will be the internal demand, which will continue to decrease although it will do so at a lower pace. In addition, the Catalan Executive believes the unemployment rate will decrease and reach 23.1% by the end of the year. It is expected 2013 will end with a 23.7% unemployment rate, higher than the 22.6% rate registered at the end of 2012.

The Spanish PM, Mariano Rajoy, considered that “to reform the Constitution in order to satisfy those who will not be satisfied”, referring to the citizens supporting Catalonia’s independence from Spain, who represent more than 50% of Catalans according to polls, would be “a great mistake”. Answering a question from the former Catalan President José Montilla, Rajoy stated before the Senate that “Spain and national sovereignty are not negotiable”. However, despite these red lines, Rajoy affirmed that his attitude towards Catalonia is “to talk” in order to find a negotiated way out. More than 80% of Catalans would like to hold a self-determination vote in Catalonia.

However, in annual terms, Catalonia registered a fourth consecutive drop in unemployment figures with a 1.93 % decrease compared to October 2012 and 12,474 fewer jobseekers. By the end of October 2013, 633,832 people were registered as unemployed at the offices of the Catalan Public Employment Service (SOC), meaning a 2.08% increase since the month of September, with 12,921 extra people unemployed. These latest figures, which were released by the Spanish Ministry of Employment and Social Security, also indicate a third consecutive month of growth in unemployment. In the whole of Spain, registered unemployment also increased for the third consecutive month.

Eight officers of the Catalan Police have been indicted by the judge and consequently temporarily suspended from active service by the Catalan Government, it was announced on Monday. The 8 policemen are suspected of beating up a middle-aged man while they were arresting him, causing his death, trying to destroy evidence and obstructing justice, according to the judicial report. The victim – gay businessman Juan Andrés Benítez – died a few hours after his arrest from a heart attack, allegedly provoked by 5 punches received on his head during his arrest. The case has generated significant controversy, since it is not the first time that Catalan Police have been involved in a violent abuse scandal. At the same time, the Spanish Police were requested to act as judiciary police and issue an investigation report on the facts.