infrastructures

Development minister pledges to remedy situation, while Catalan counterpart says he will be "demanding" in upcoming bilateral summit

Spain’s budget for 2017 allocates €1.14 billion to invest in Catalonia, €30 million less than last year. However, as a percentage, the figure represents 13.4% of the total, which is higher than in 2016, which saw only 10.7% investment for Catalonia. The allocation is still below Catalonia’s contribution to Spain's GDP, which is 19%. Although most of the investment is oriented toward infrastructures, the figures are a far cry from the major investment that Spanish President, Mariano Rajoy, announced last week for Catalonia. Indeed, he said that €4.2 billion will arrive in Catalonia by 2020. Spain's Minister of Finance, Cristóbal Montoro, admitted that the budget doesn’t include the promised measures and assured that the investment “will move forward in 2018”.

The Catalan Government spokeswoman, Neus Munté, has commented on the promise by Spanish President, Mariano Rajoy to invest €4.2 billion in infrastructures in Catalonia. She expressed the Government’s “immense skepticism” regarding Rajoy’s promises and advised him to add a “clause to avoid its breach”, bearing in mind previous experiences. “If there is anybody who believes that what happens in Catalonia is only an economic problem, then he is really confused,” she added. Moreover, Munté considered Rajoy’s announcement a strategy “to hide the fact that the so-called ‘operation dialogue’ never existed at all”.

Spanish President, Mariano Rajoy, announced that his Government plans to invest €4.2 billion by 2020 to improve Catalonia’s infrastructures. The most important part would go to the short-distance train network, operated by Spanish Public Train operator, RENFE. Indeed, this piece of infrastructure has been one of the historic demands of Catalan citizens, after years of underinvestment and continuous incidents. According to Rajoy, €1.9 billion would be invested during this term of office and €2 billion more by 2025. In a speech he gave within the seminar ‘Connected to the future’, held this Tuesday in Barcelona, Rajoy expressed his “personal commitment” to turn the short-distance train network into a “realistic, viable and verifiable” piece of infrastructure. Earlier this week, the Catalan Government already expressed that they had “few expectations” regarding Rajoy’s promises and pointed out that previous investment plans haven’t been fulfilled for decades.

Barcelona’s Chamber of Commerce reported this Thursday that 2015 was the worst year in the historical data series, which dates back to 1997, in the rate of state investment in the transport infrastructure in Catalonia. Specifically, the Spanish Government executed only 59% of the budgeted investment in Catalonia, below the average of all the Spanish Autonomous Communities, which stood at 72%. The president of the Chamber, Miquel Valls, lamented in a press conference that the low degree of implementation of investment occurs on an initial budget which is already relatively small for Catalonia. Last year, the Spanish executive budgeted for the region 9.9% of total state investment in transport infrastructure, despite the Catalan GDP accounting for 18.9% of the state’s overall GDP.

Catalan Minister for Territory and Sustainability, Josep Rull, explained this Friday that the Government has presented an appeal before Spain’s High Court, the ‘Audiencia Nacional’, denouncing Adif’s lack of investment in the short and medium railway network in Catalonia. Rull accuses the Spanish public body in charge of railway infrastructure and the Spanish Ministry for Infrastructure of not complying with the agreed investment. “We open the judicial way because the political one between both governments has proved to be broken”, he stated. Rull pointed out that Adif committed to investing 306 million euros in Catalonia’s railway network and only so far only 4.2% of this has been carried out. “Therefore, there is a flagrant failure to fulfil”, he insisted. Current Spanish Vice-president, Soraya Sáenz de Santamaría, responded to the Government’s action and stated that “this proves that those who think they are right turn to the legal mechanisms available”.

The main Catalan airport broke another of its own records by serving 4,257,534 passengers last month, which is its best July ever and a 5.7% increase on July 2014 data, according to information released on Wednesday by the Spanish Airport Authority (AENA). Looking at the cumulative passenger figures, Barcelona El Prat has hosted 22,321,477 travellers in the first 7 months of the year, a 5% growth on the same period of 2014. In the last few years, the airport has increased its passenger figures significantly while increasing its number of short- and medium-haul routes, as well as its intercontinental destinations. Indeed, the number of intercontinental passengers in July has seen a 19.3% growth compared to the same month of 2014. The number of passengers on intra-European Union flights increased by 9.7% in the same period, and domestic flight passengers grew by 5.1%. The only negative figure was the decrease in the number of travellers on European but non-EU flights, which decreased by 3% due to the drop-off in Russian tourism.

According to a report published on Thursday by Barcelona's Chamber of Commerce, the Spanish Government's investment in infrastructure in Catalonia has dropped by 50% in the last 10 years, while it has been reduced by 25% throughout the rest of Spain in the same period. The President of the business association, Miquel Valls, stated that this reduction represents "a break"in the Catalan economy's growth, which could be in a better position to speed up the economic recovery. The report takes into account the executed investment made by the Spanish Government and its public companies in areas such as airports, high-speed railway or harbours. In 2006, the Spanish Parliament recognised "a historical" lack of investment in Catalonia when it approved the Catalan Statute of Autonomy and set a minimum investment percentage share to be made in Catalonia to compensate this in the next 7 years. This share was never respected.

The Catalan Government has published a report listing all the Spanish Executive’s disloyalties towards Catalonia including not respecting legislation, devolved powers and cultural aspects. The 50-page document has a chapter quantifying the costs of such disloyalty, which totals €9.375 billion, according to the Catalan Government. €5.748 billion correspond to infrastructure which has not been built; €672 million to a reduction in institutional transfers; €1.715 billion to spending increases due to the Spanish Government’s unilateral decisions; and €1.239 to revenue reductions due to similar unilateral decisions which have never been compensated. The report does not take into account the so-called fiscal deficit – the €16.5 billion that each year Catalan tax-payers transfer to the rest of Spain. The Catalan Government emphasised that there has been “a permanent disloyal activity” since 2000.

In an interview with the Catalan News Agency, the European Commissioner for Regional Policy, the Austrian Johannes Hahn, nuanced previous statements made by other Commissioners and opened the door to debating Catalonia’s EU membership “in a more relaxed way”. Hahn “rejected” the idea that the Commission “is ignoring Catalonia’s independence movement”; “we are watching it carefully”, he said. On the question of automatic expulsion from the EU in the event of becoming independent, the Commissioner emphasised that “of course there is no provision in the Treaty and that’s why legal experts have the opinion that then Catalonia should ask for membership”. However he immediately added that “we should resolve this issue in a more relaxed way”, since “if there is independence, it would not happen from one day to the next”.

France will not allow High-Speed Trains from Barcelona to Central and Northern Europe to run at their maximum velocity since it refuses to build the 156 kilometre high-speed railway stretch between Perpignan and Montpellier. This infrastructure has been declared to be one of the European Union’s strategic transport priorities, since it connects the Iberian Peninsula with the rest of the continent via the Mediterranean Railway Corridor. Many years ago, the French Government promised to build this stretch before 2020, an engagement reconfirmed by Sarkozy’s executive. However, the current Prime Minister Jean-Marc Ayrault has paused work on the project and delayed it until after 2030.

According to the current legislation, the Spanish Government has to invest 18.9% of its total transport infrastructure budget in Catalonia between 2007 and 2013 in order to compensate for an historical lack of such investments. However, according to the Spanish Transport Ministry’s budget execution reports and the projections made by the Chamber, the Spanish Government is far from honouring this legal obligation. Not only have investments in Catalonia not increased in relative terms, but they have been reduced to a “historical minimum”. While the planned budget for transport investments has been reduced by an average of 36% throughout Spain due to the economic crisis, in Catalonia it has dropped by 50%. Furthermore, 87% of the planned budget was executed throughout Spain, while in Catalonia Madrid only executed 68% of it.

The Spanish Government has finally finished the construction work and circulation tests on the last 131-kilometre stretch of railroad to France. Barcelona, Girona and Figueres are now linked by High Speed Train, although a direct connection between the Catalan capital and France will have to wait until next April. Now, passengers can travel from Barcelona to Girona in only 37 minutes and to Figueres in a total of 53 minutes. If they want to continue to France, they will have to switch trains until April, when the Spanish trains will be standardised to be able to run in France. However, from now on, the Spanish and the French High Speed railway networks will finally be connected, twenty years after the Madrid-Seville line was unveiled. The Catalan President has emphasised that Catalonia is the Autonomous Community with the smallest amount of public infrastructures in Spain.