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Andalusia quits the meeting after one hour. For the first time in democracy, the Catalan Finance Minister did not attend the Fiscal and Financial Policy Council (CPFF), where the Autonomous Community governments and the Spanish Executive discuss the regions’ financial situation and funding. Catalonia refused to attend the CPFF as decisions were taken beforehand by the People’s Party, which runs the Spanish Government and most of the Autonomies for which CPFF decisions are binding. In addition, the Catalan Finance Minister refused to attend the meeting due to Spanish Government’s unilateral decision to oblige the Autonomies to meet a stricter deficit target in 2013, passing from the planned 1.1% to 0.7%. He sent a letter asking for the same flexibility the European Union is giving to Spain.

Catalan political parties, business associations, and many citizens are outraged by the decision to increase toll prices in Catalonia, while in the rest of Spain there are many toll-free highways. The Catalan Transport Minister asked the Spanish Government to implement a “soft toll” throughout Spain, instead of increasing toll prices in Catalonia. He reminded that for some journeys within Catalonia, there are no free of charge alternatives to the tolled highways. Catalan nationalists see this measure as a new proof of Catalonia’s high fiscal deficit, paying much more to the rest of Spain than what it gets in return. The People’s Party (PP), running the Spanish Executive, asked the Catalan Government to reduce the price of its tolls.

A combination of Spain’s economic predictions and Valencia’s formal request to the central government for financial assistance shook the markets on Friday, despite the stringent the austerity measures passed this week and the approved deal to lend up to 100bn euros to the Spanish banking sector. The Spanish government expects an unemployment rate of 24.3% and a fall in GDP of -0.5% in 2013, expecting to be out recession by 2014 and 2015 with a GDP growth of +1.2% and 1.9% respectively. The Valencian Government has requested assistance from the Spanish Government, making it the first autonomous community to ask for emergency financing from the regional liquidity fund.

The Spanish Congress has ratified a new austerity package this Thursday with 180 votes from People’s Party (PP), 131 votes against made up by the other parties and one abstention from the Unión del Pueblo Navarro (UPN). The new measures include the suspension of the Christmas bonus for public sector officials, an increase in VAT, and a reduction in unemployment benefit after the sixth month. The Spanish finance minister, Cristóbal Montoro, defended the measures on the grounds that they are "necessary sacrifices" to enable economic recovery and that "giving up is not recommended or possible". Various groups have protested against the measures, with over 80 demonstrations across the country.

The Spanish vice president, Soraya Sáenz de Santamaría, said the fund is an “extraordinary mechanism” that will force regions that use it to comply with “extraordinary conditions”. The money will come from a €6,000 million loan from the state lottery and the Spanish treasury. The autonomous communities that decide to use the money from the fund will have the responsibility of paying it back and will be subject to a potential intervention by the central government if they do not comply.

The ruling Centre-Right Catalan Nationalist Coalition, Convergència i Unió (CiU) and the People’s Party (PP) have agreed to evaluate the drug prescription fee in 2013. The implementation in 2013 of the 1 euro fee will be on the condition of meeting the deficit targets and the effects of other financial measures regarding medicines. The PP has abstained in the Catalan Parliament’s vote and the plan finally has the green light to be implemented.

Catalan citizens will have to pay €1 for every medical prescription, with a maximum of €61 per year. 127,000 people will not have to pay the tax for social reasons. This measure approved by the Catalan Government aims to reduce healthcare spending by moderating the purchase of medicines, the final goal being reducing the public deficit.

The President of the Catalan Government, Artur Mas, travelled to Massachusetts and New York to promote Catalan businesses and present Catalonia as one of the main biotechnological clusters and tourist destinations in Europe. In addition, Ernst & Young presented their report on life sciences companies and research centres in Catalonia, which indicates that almost 30% of this sector’s turnover in Spain comes from Catalan businesses.

Independent auditors state that in the worst possible scenario the Spanish banking system would need up to €62 billion. The Eurozone agreed to put at Spain’s disposal up to €100 billion if needed. In the most likely scenario, the Spanish banking system would require between €16 billion and €25.6 billion. Within the most stressed case, Spain’s three main banks would have enough resources of their own to face difficulties and would not need any additional funding. They are the Barcelona-based CaixaBank and the two international giants BBVA and Banco Santander.

The Catalan Government’s debt represents 21% of Catalonia’s GDP, and it is in charge of almost half of public spending and manages healthcare, education and other basic services. Catalonia’s debt continues to increase because of the public deficit, but slows down its growth significantly. Over the first quarter of 2012, the Catalan Government’s debt increased by €222 million, while it had grown by €2.34 billion over the same period in 2011. With this last increase, the Catalan Government’s debt reached €42 billion at the end of March 2012.

On Tuesday the Catalan Council for Constitutional Guarantees (CGE) declared that the Spanish Government decree cutting €3 billion in education does not respect 2 Constitution articles and 5 other articles from Catalonia’s Statute of Autonomy, being thus unconstitutional and going beyond Madrid’s jurisdiction. The Catalan Government following the CGE’s unconstitutionality assessment decided to bring the education decree to the Constitutional Court(TC), as it did last week with Rajoy’s health decree. However, after the Spanish Government threatened to bring approved initiatives from the Catalan Executive to the TC, the Catalan Government decided to modify the decrees through dialogue and bring the decrees to the TC as a last option.

After some months of uncertainty about the future of this training centre in the Pyrenees, the Spanish Government confirmed that NCOs will be able to continue their studies in the academy, although its activity will be reduced. In the last few months, the Platform for the Pyrenees University presented some alternative uses for these facilities, with the objective of converting them into a civilian academic centre. Another platform, Acadèmia Sí, was created at the same time to fight for the maintenance of the military academy, as it is one of the key actors in the local economy.

Following the advice of the Catalan Council for Constitutional Guarantees (CGE), the Catalan Executive will appeal the Spanish Government’s decree to save €7 billion in healthcare this year. However, it will continue implementing the decree until a judicial decision is made. According to the CGE, the decree violates 3 Spanish Constitution articles and 3 others from the Catalan Statute of Autonomy. The decree does not guarantee equality among all citizens, since it limits access to public healthcare. In addition, it invades the Catalan Government’s powers. Left-wing Catalan parties were the first to ask for CGE’s opinion, since they consider the new decree violates basic social rights.

The Spanish Finance Minister, Cristóbal Montoro, presented the budget data from January to March 2012. The Autonomous Community Governments together had a 0% deficit in this period. Among them, Catalonia’s had a 0.45% budget surplus, while in the same period of 2011 it had a 0.65% deficit. Montoro emphasised that the data shows “the big effort” the Autonomies are making.

After 13 years, the Constitutional Court has denied the appeal presented by the Spanish Government in 1999 against a Catalan Parliament Law that allowed the Catalan sports federation to compete internationally. However, the Court states that Catalan teams cannot compete “in sports where no Spanish federation exists”. According to the Catalan Government, this sentence is “a first step” on the road to the international recognition of “all sports federations”. In addition, the Platform for Catalan said that Spanish legislation does not apply internationally and that International Federations are private organisations; it is thus their decision, as the CAS confirmed in 2008. They also mentioned the case of England, Scotland, Wales and Northern Ireland.