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In a very unusual movement, Juan Carlos I has issued a short but clear letter one week after the massive demonstration for Catalonia’s independence. The King emphasised the need to remain “united” and asked the people to retake the “values” of the “Democratic Transition”, such as “dialogue” and “the sacrifice of particular interests for the general good”. The Catalan Government does not feel “concerned” by the King’s letter. However, it states that Catalonia “offers solutions” and “does not chase pipe dreams”. Spanish nationalists celebrate the King’s words while PM Mariano Rajoy still remains silent. Catalan and Basque nationalists criticise the King for taking sides and not emphasising values such as “pluralism, diversity, tolerance, and respect for discrepancies”.

The Catalan Socialist Party (PSC) is against independence but supports claims for greater self-government and fiscal autonomy for Catalonia. The PSC’s Secretary General, Pere Navarro, proposes a “preferential bilateral relationship” between Catalonia and the Spanish Government, within an “asymmetrical” federal Spain. However, the Spanish Socialist Party (PSOE), which is formed by federated territorial parties such as the PSC, seems to evade the question, at least for the time being. The PSOE’s Secretary General visited Catalonia for the first time after the 1.5 million strong demonstration for independence and did not mention the word “federalism” a single time.

The renovation work in Saint Mary’s Cathedral in Tarragona have revealed tens of polychromes on the walls of this temple of transition from Romanesque to Gothic. The grey painting layer that covered the walls of the building concealed these polychromes which date from the 14th to the 16th centuries. The Medieval artworks were mostly painted in shades of red and green. This is the fourth phase of the renovation work that started in 2010 and have cost €3 million, funded by the Spanish Ministry of Culture.

The Autonomous Communities are responsible for 18.7% of Spain’s global public debt, while they manage around 40% of the country’s public spending. The Spanish Government’s share represents 76.8% of Spain’s global debt, which reached €804.39 billion at the end of June. Spain’s debt is now 75.9% of the GDP. The Catalan Government has a debt of €43.95 billion. The day before, the Spanish Finance Minister announced that the Catalan Government had a 0.59% deficit for the first half of 2012. Furthermore, Catalonia suffers from a structural fiscal deficit due to Spain’s fiscal redistribution scheme, which annually takes away 8.5% of its GDP, a €17 billion annual solidarity contribution.

Three days after the 1.5 million strong demonstration for Catalonia’s independence, partially fuelled by the Spanish nationalism’s recentralisation attempts and the lack of respect to Catalonia’s self-government, language and culture, the Spanish Government is about to approve a reduction in Catalonia’s share in the definition of the school curriculum. Furthermore, the Spanish Education Minister wants to establish “homogenous evaluations” throughout Spain, although the Catalan Government exclusively manages such evaluations, as well as the school facilities and staff.

By the end of the year, Catalonia must meet a 1.5% deficit target. According to the Spanish Finance Minister, Cristóbal Montoro, the Autonomous Community governments are heading “in the right direction” to honour the deficit objective for 2012. The Catalan Government had a 0.38% deficit at the end of July, according to its own sources. This represents a €767 million deficit, while at the end of July 2011 it had a 2.09 billion deficit, which represents a 63% deficit reduction.

At a conference in Madrid, the President of the Catalan Government, Artur Mas, warned Spain about the “great mistake” of downplaying the massive demonstration for independence. No members of the Spanish Government or leaders of the Socialist Party (PSOE) attended the event, which is unusual. In front of a crowded audience with many foreign press, Catalan MPs and businesspeople, Mas explained that Catalonia “has been trying for decades to reform Spain to make it our state”. However, Catalans are now “tired” from “the lack of respect” and the “disloyalty”. “If Spain denies the fact of Catalonia being a nation”, “many issues will not be solved”. Then “it is logical for a people to solve their future “peacefully, democratically and in a strictly European way”.

“Listen, and listen carefully. Do not get angry if you don’t like what you see. And put solutions on the table, if you have them”, the President of the Catalan Government, Artur Mas told Spain the day after the 1.5 million strong demonstration for Catalonia’s independence. He also stated he will work to create “state structures”. The Spanish Government refused to comment directly on the event, stating it should be analysed “coldly”. However, it said Spain and Catalonia should have other priorities.

In the largest demonstration Barcelona has ever seen, 1.5 million citizens according to the Catalan Police marched in Catalonia’s capital after the banner “Catalonia, Europe’s new state”. The Spanish Government reported a reduced number of 600,000 participants while organisers talked of 2 million participants. The Catalan President did not attend it because of his institutional position, but gave his support at a personal level. Most of the Catalan Government was present. Members from most of the Catalan political parties were also present, including the Socialists (PSC) but at a personal level. The only absentees were representatives from the People’s Party (PP) and anti-Catalan nationalism ‘Ciutadans’ (C’s). Many families gathered for the demonstration which ended with the petition to start the secession process.

The President of the Catalan Government, Artur Mas, leader of the Centre-Right Catalan Nationalist Coalition (CiU), sent a warning message to the rest of Spain and in particular to the Spanish Government. “If there is not an agreement on the economic bases”, “Catalonia’s way to freedom is open”. The Spanish Prime Minister and leader of the People’s Party (PP), Mariano Rajoy, stated on Tuesday morning that Spain and Catalonia should have other priorities. The Spanish Government and most of the rest of Spain are against a new fiscal agreement between Catalonia and Spain, reducing the Catalan solidarity contribution, which represents some €17 billion per year. Furthermore, the Catalan PP has stated it will stop giving its parliamentary support to CiU.

‘Barcelona World’, located next to Salou’s beaches and PortaAventura, will have 6 new theme parks, as well as 12,000 hotel rooms, casinos, convention centres, golf courses and other amusement facilities. 10 million people are expected to visit the mega-resort funded by Veremonte each year, which will create 40,000 jobs. ‘Barcelona World’, located next to Tarragona in the Costa Daurada, will be Europe’s largest amusement resort and among the world’s largest, targeting family and business tourism. Construction may be complete by late 2016. The project has been announced after the expiration of the offer made to Las Vegas Sands to build its casinos next to Barcelona. This American company has not announced if it will finally build ‘Eurovegas’ in Madrid yet, but the Barcelona option seems to be ruled out.

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

The political scientist Alain Gagnon, from the Université du Québec à Montréal, believes that popular desire for secession is weaker in the francophone territory of Quebec than in Catalonia because Canada has agreed to remodel the fiscal redistribution scheme. He believes that Catalonia is closer than Quebec to becoming an independent state and considers that next Tuesday’s demonstrations on the Catalan National Day could “raise awareness of the situation between Catalonia and Spain at a European level”.

The Catalan Finance Minister, Andreu Mas-Colell, asked the Spanish Government to set up a temporary short-term loan system if the announced Liquidity Fund for the Autonomies is not in place this September. The Catalan Government has been insisting on the urgent need to define and put into force this financial tool to provide the Autonomous Communities with liquidity now their access to international financial markets is impossible as they face unsustainable interest rates. In addition, Mas-Colell stated that it is very likely that more budget cuts will be needed in 2013 to meet the 0.7% deficit target. He also criticised the Spanish Government for imposing stricter deficit objectives for the Autonomies while Brussels gives Spain greater flexibility.

The decision by Spanish Government to restrict access to the public healthcare system could leave 600,000 people in Catalonia (8% of the population) without primary and specialised medical attention. 180,000 of these people would be foreigners. The Catalan Minister for Health, Boi Ruiz, explained that the measure aims to guarantee the universal access to healthcare to all the population, independent of their legal status, but at the same time avoid healthcare tourism.