government

The Spanish Government has taken this measure for the European Central Bank (ECB) Governing Council that will be held in Barcelona from May 2nd to 4th. The cancellation of the Schengen Protocol comes after a request by the Catalan Minister for Home Affairs to prevent the arrival of violent protesters and guarantee security during the meeting. This precautionary measure will come into effect from April 28th to May 4th, both included. It will be combined with 6,500 police deployed on the streets of the capital of Catalonia. All these measures will be taken after an evaluation of the risks of trouble during the event.

The day after the Spanish Government imposed increasing the price citizens pay for medication, the Spokesperson for the Catalan Government confirmed that Catalonia will maintain the €1 drug prescription fee. The Catalan Health Minister had said earlier they would study if the drug prescription fee would be implemented. The main doctors union and Left-Wing opposition parties asked the Catalan Government to eliminate the drug prescription fee, because it would make Catalan citizens pay more for their medication than the rest of Spanish citizens.

The Spanish Minister of Health met with her counterparts from the Autonomous Communities to discuss measures to reduce healthcare spending by €7 billion. Pensioners will have to pay for 10% of their medication, with a maximum of between €8 and €18 per month depending on their income. Furthermore, people with a job will have to pay for 40% to 60% of the price, depending on their income. Besides, the number of pills will better adapt to prescriptions, drug purchases will be centralised and generic drug prescriptions will be fostered. Catalonia might not eliminate the drug prescription fee although the final decision will be taken once the impact of measures is fully studied. The Catalan Minister also emphasised that the main problem in Catalonia is “the system’s funding” and not expenditure, which cannot be further reduced.

The Catalan Government and many town halls throughout Catalonia have applied for credit funds facilitated by the Spanish Government to clear out all their arrears from 2011. The Spanish Government, together with several banks, have put €35 billion on the table for long-term credits for the Autonomies and municipalities to get rid of all their arrears with suppliers. The credit is to be returned in 10 years time, and they have to make no payments in the first two years. The Catalan Government presented 268,489 bills totalling €1.98 billion, corresponding to all its services as well as public companies and agencies. They represent 11.48% from the total €17.26 billion applied by the Autonomies.

The Spanish Minister for Education met with his counterparts from the Autonomous Communities and imposed 6 measures that must be adopted to save €3 billion. The Catalan Minister considers that three of the measures might invade powers managed by the Autonomies, and therefore the Spanish Government might be ruling beyond its jurisdiction. The Catalan Government will study them and does not rule out bringing the Spanish Government to the Constitutional Court. Nonetheless, the Spanish Minister reminded that, before a judge says the contrary, the measures are still obligatory. Besides, the Catalan Minister also emphasised the previous austerity efforts made by the Catalan Government also in Education, and the Spanish Ministry’s “lack of knowledge” about them.

Aguirre, President of Madrid's regional government, asked to return healthcare, justice administration and education powers, which are managed by the Autonomous Communities, back to the Central Government. Prime Minister Rajoy, the leader of the People’s Party (PP) –Aguirre’s party–, stated that a debate about the Autonomous Community model is “out of the question”. Furthermore the PP’s Catalan leader defended the current model, as Catalonia “exerts its self-government as established in the Constitution”. Besides, the Catalan President told Aguirre to return the powers she does not want to manage, but to leave Catalonia aside. He added that the current model was designed “to dilute Catalonia and the Basque Country’s self-governance claims”.

CiU stated that it will be “absurd” that they support the current budget proposal in the Spanish Parliament although they are open to negotiate and modify it. Furthermore, CiU “does not rule out the possibility of taking the Spanish Government to court” for ignoring the current legislation. The Socialists directly considered the budget proposal “to mistreat Catalonia”. The Green Socialists ask for a “common Catalan front” against the budget. The Catalan Independence parties (ERC and SI) say the budget plunders Catalonia. The anti-Catalan nationalists stated the budget wants to please Merkel. The only party supporting the budget was the PP, which runs the Spanish Government.

The Spanish Government will not respect the territorial funding scheme, approved by the Spanish Parliament and in a referendum, as it will only invest 11% of its regional spending in Catalonia. According to the current legislation, in order to compensate for an historical lack of infrastructural investment in Catalonia recognised by the Spanish Parliament and the Constitutional Court, the Spanish Government must invest at least the equivalent of Catalonia’s economic weight within Spain, which represents 18.7% in 2012. Furthermore it does not include €1 billion pending from 2008 and 2009, to which Catalonia is legally entitled.

The General Strike on March 29th ended without significant changes in the Spanish Government’s Labour Reform, but with a clear acknowledgement that there is growing social anger. The strike was unevenly supported in Catalonia. Unions talked about sector strike participation ranging between 97% and 57% and the Catalan Government about strike participations ranging between 24% and 10%. Minimum services worked as planned, without any significant incidents. Demonstrations took place in the main Catalan cities, with the largest in Barcelona. Isolated violent incidents were the only negative parts of what was a relatively calm day.

The Spanish Minister for the Economy, Luís de Guindos, announced in Barcelona the future creation of the so-called ‘hispanobonds’, common bonds issued by the Autonomous Communities and backed by the Spanish Treasury. The objective is to reduce high interests rates, and thus the financial costs that the Autonomous Communities have to pay when they turn towards financial markets to get liquidity. The Catalan Finance Minister proposed the original idea several few weeks ago.

The Catalan Government has been issuing retail bonds over the last two years as a regular way of financing its liquidity. All the previous issues have been a success, with high demand. Between April 2nd and April 24th Catalan citizens will be able to buy one year and two year treasury bonds of the Catalan Government’s debt, with an interest rate of 4.5% and 5% respectively.

The President of the Catalan Government, Artur Mas, met with the President of the European Parliament, Martin Schulz, in Brussels. Mas told the press that Schulz had stated he would “work hard” to enable the use of Catalan at plenary sessions. However, Schulz did not confirm neither “any date” nor can he “guarantee that he would achieve it, as it does not only depend on him”, explained Mas.

Representatives from the Quebec Government have organised sessions to advertise job possibilities in their region. They are mainly looking for workers with technical skills, mainly in the sector of civil engineering, healthcare, and IT. The Catalan Government reached an agreement with Quebec to strengthen the professional mobility of Catalan workers. The participation of Catalan companies in the plans for economic development of the Quebecois Government is also promoted.

The Japanese multinational company has chosen Catalonia’s capital for a new international sales centre serving the entire European Union. The centre will create 300 high-qualified jobs by 2013, when it will be fully operational. The President of the Catalan Government, Artur Mas, unveiled the new centre, while he pointed out the strong business relationship between Japan and Catalonia. He also emphasised the “business friendly policy” of the Catalan Government.

The Catalan Government has drafted a plan regarding public employees for the 2012-2014 period. The aim is to reduce public spending in order to meet the deficit targets by reorganising civil servants, including their working conditions. The plan foresees the possibility of a reduction in salaries and working hours, as well as making their working conditions, tasks, and location more flexible. 6,800 temporary workers will have their hours reduced by 15% from April 1st. Unions have criticised the plan. However, the Catalan Vice President has asked unions to avoid exaggerating the issue and creating problems.