government

The Catalan Executive has published the liquidation of Spain’s fiscal redistribution scheme of 2011. That year, Catalonia was the 3rd Autonomous Community paying the most taxes per citizen in Spain, with a 119.1% rate if the average were 100%. However, after the Spanish Government’s redistribution of money through services and investments, Catalonia was the 10th territory in spending per capita, with a 99.4% rate, below the average. In 2011, Catalonia received €16.91 billion, 3% less than in 2010. The region of Madrid was the Autonomous Community paying the most, since Spanish Government bodies and many multinational companies are based there. It was followed by the Balearic Islands, which received 12.3 million tourists while its population is just 1.1 million.

On Tuesday, the Spanish Finance Minister, Cristóbal Montoro, stated before the Senate that the Spanish Government “was financing the services” the Catalan Executive provides. In an angry and agitated tone, Montoro concluded the intervention shouting “Do you understand?! Don’t you understand?!” to the Catalan Senator who had asked him about the recentralisation of power. The President of the Catalan Government, Artur Mas, answered the Spanish Finance Minister in a calm but angry tone: “the Catalan Executive finances public services thanks to the effort Catalan citizens make each day by producing, working and paying taxes. And from all the taxes paid by Catalan citizens, a large amount, as much as €16 billion leaves Catalonia and never comes back [after the Spanish Government’s redistribution]. Who the heck is funding whom? It’s Catalonia that funds the Spanish State from many points of view”.

The Catalan Executive announced the creation of a website showing the support of social organisations, NGOs and private companies for its policies, named the “file of endorsements”. The Catalan Government’s official aim was to foster participation as well as gather endorsement for its policies. The idea was heavily criticised by some opposition parties and some Madrid-based media. They considered the website to be an anti-democratic measure. According to them, it would split society into two sides: those backing the Government and “being good Catalans” and those going against it and being “bad Catalans”. The Catalan Executive admitted that it was quite shocked with the controversy, since other governments in Spain have published similar lists of supporters. However, it announced that it will totally modify the project.

On Friday, the Spanish Government approved a proposal of law strengthening market unity, officially aiming to simplify the bureaucratic and legal framework in which companies operate. However, the Catalan Executive fears Madrid’s reform does not really aim to boost the economy and help companies, but to recentralise power. Barcelona thinks that the new proposal “radically modifies” the current distribution of competences on economic regulation and it aims to recentralise power. The Catalan Government hopes that the definitive law will be significantly changed in relation to the current proposal, as otherwise Barcelona will totally oppose the initiative. Catalonia is critical of the current proposal and accuses it of “homogenising the Autonomous Communities”.

Catalonia’s industrial sector decreased by 1.1% in 2012 due to the economic crisis. Catalan companies exported products for €58.28 billion, the highest figure ever. This represented 5.7% more than in 2011 and 15.4% more than in 2008. Exports from Catalonia represented 26.2% of Spain’s total exports in 2012. Furthermore, foreign investment in industrial projects in Catalonia increased by 6.2% last year compared to 2011. Therefore, the highest volume of exports ever and an increase in foreign investment in industrial projects meant that the Catalan industrial sector decreased at a slower pace (-1.1%) than the Spanish average (-2.9%). The lack of access to bank credit is the main obstacle for corporate investments, stated the Catalan Government. The other great obstacle is the poor internal demand.

Following a petition by the Spanish Public Prosecutor Office, the judge has called Germà Gordó, the Catalan Minister of Justice, to testify as witness in the alleged influence peddling case of the allocation of licenses to technical vehicle inspection garages. This case affects the ‘Number 3’ of the governing Centre-Right Catalan Nationalist Coalition (CiU), Oriol Pujol, since the Supreme Court of Catalonia (TSJ) suspects he could have participated in irregular allocation of these licenses. At the time the alleged incidents happened, Gordó was not the Justice Minister but the Secretary of the Catalan Government, a key position overseeing all the daily decisions of the Executive. The TSJ wants to hear Gordó’s version of the tender procedure. Besides, Pujol’s defence has called the former Catalan Business Minister as a witness, since his department was running the tender.

Registered unemployment in Catalonia decreased by 3.87% in June compared to the previous month’s figures. June is a month when unemployment tends to be reduced due to summer jobs, but last month registered the highest drop since 1996. The total number of people registered as unemployed at the Catalan Public Employment Service (SOC) by the end of June reached 617,288 individuals. However, compared to a year ago, registered unemployment increased by 1,712 people, 0.28% more than in June 2012. In the whole of Spain, registered unemployment also increased in annual terms (+3.2%) and decreased compared to a month ago (-2.6%). Catalonia is the Autonomous Community where unemployment decreased the most in monthly terms. Furthermore, in the Lleida Province (Western Catalonia), unemployment also decreased in annual terms.

The Italian ferry company has built a 63,000 square metre terminal at the Costa dock, with an investment of €20 million and a capacity of 3,600 passengers per day. The new terminal will allow the city of Barcelona to gain a new urban area, since the space accessing and surrounding the terminal will be integrated into the city for the first time. Urban planning work will be concluded by the end of the year, announced the Mayor of Barcelona, Xavier Trias. The terminal has restaurants, bars, shops and free Wi-fi, and will allow the boarding of passengers and goods.

On Saturday evening, 90,000 people gathered in FC Barcelona Camp Nou stadium to attend a concert backing Catalonia’s right to self-determination. The event, organised by a civil society entity – Òmnium Cultural – and without public funding, called for a self-determination referendum in 2014. The two largest political parties in Catalonia, which share a parliamentary stability pact, stated that a specific date for a self-determination vote should be fixed after December 2013. In addition, they insisted that the Catalan President will send a letter to the Spanish Prime Minister in July asking for this vote to be organised. However, in Madrid, the reactions have been almost non-existent. The Spanish Justice Minister insisted that a referendum would be illegal since sovereignty is rooted into the Spanish people as a whole.

The Catalan Ombudsman, Rafael Ribó, accused the Spanish Government of trying “to manipulate” data in its report last week, in order to push forward a recentralisation reform, which “goes against the self-government principle”. Ribó explained that the Spanish Ombudsman undertook 33,849 actions in 2012, which means each action cost an average of €428. In addition, it refused to accept 20,164 complaints. Meanwhile, the Catalan Ombudsman undertook 25,073 actions, with a cost of €279 each. The Catalan institution only rejected 267 complaints. Regarding resolutions and recommendations, the Spanish Ombudsman issued 548 while the Catalan body issued 3,635. This means that each resolution by the Spanish body cost €26,447 while the Catalan’s cost €1,925, which is 13.75 times less.

The Intermediterranean Commission of the Conference of Peripheral Maritime Regions of Europe organised its annual Plenary Assembly in Barcelona, since Catalonia currently holds the organisation’s presidency. This organisation brings together 45 regional governments from 9 different Mediterranean countries. For the first time, the Union for the Mediterranean – which brings the 27 European Union Member States and 16 countries from the Northern Africa, the Middle East and the Balkans together – signs a cooperation agreement with an organisation of regional governments. At the signing ceremony, political leaders asked the European Union to pay more attention to the South, as once it did with Eastern Europe.

The participants to the so-called National Alliance for the Self-Determination Right have met for the first time, bringing together almost 50 entities, including political parties, business associations, trade unions, social organisations and cultural institutions. This transversal initiative gathering together a wide part of Catalan society aims to reach an internal consensus on how to proceed in order to allow Catalans to vote on their collective future. Attendees agreed to ask the former President of the Catalan Parliament, Joan Rigol, to draft a text expressing the “common denominators” of the participants. In addition, the President of the Catalan Government, Artur Mas, will send a letter to the Spanish Prime Minister, Mariano Rajoy, making a formal petition for the organisation of a self-determination vote in Catalonia.

The Catalan Government will continue to occupy the facilities as a tenant, annually paying €16.2 million in rent over the next 20 years. The decision to sell Catalan Government properties had been taken to ease the difficult financial situation and obtain liquidity. The initiative is part of the austerity measures adopted to reduce the public deficit and increase revenue. Taking this last sale into account, the Catalan Government will have sold 17 properties for a total of €266 million since 2012. The Catalan Minister for the Presidency, Francesc Homs, emphasised that the revenue generated by these sales will allow the Government to undertake fewer budget cuts.

On Friday, the Spanish Government approved a €37.7 billion reform of Spain’s public sector which fosters the elimination of Autonomous Community bodies considered to be “redundant”. Instead of directly obliging the Autonomous Communities to eliminate them – which might be very tricky legally speaking, the Spanish Executive will link their suppression to the deficit targets allowed to the regional governments and the funds provided. However, in the case of Catalonia, most of the bodies included in the reform are recognised by Catalonia’s main law, approved in 2006 by the Spanish Parliament and through a binding referendum. The Catalan Government and most of the political parties are accusing the Spanish Executive of trying to recentralise Spain. In addition, the Catalan President said that unfortunately Madrid “teaches lessons” but “does not do its homework” and eliminates Ministries without competences.

The Wealth Transfer Tax, which is levied on sales of second-hand housing units and any other used real estate, will be raised from 8% to 10% as from the 1st of August. The Catalan Government expects to earn an additional €50 million in 2013 and €150 million in 2014. The Catalan Finance Minister, Andreu Mas-Colell, argued that the rise in the tax rate is equivalent to the VAT charged on sales of new housing units and that both taxes should be “parallel”. He also added that other Autonomous Communities had previously raised this tax to similar levels.