investment

Catalonia’s president, Carles Puigdemont, encouraged the business sector on Wednesday to break “the status quo” in Spain in order to “survive”. In a speech in a business forum in Girona, he argued that the only alternative to independence “is decay”. Puigdemont stressed that when the Spanish government boycotts Catalan business missions abroad or does not invest in infrastructures such as the Mediterranean corridor “it is setting traps for itself and not for the independence process”, because it also “abandons the companies that are not in favor of independence”. Therefore, the Catalan president urged the economic sector to turn towards Europe and to have confidence in its “pragmatism”, suggesting the EU would welcome an independent Catalonia as a member. Carles Puigdemont closed the event titled "Entrepreneurs want to know”, organized by the business group "We believe in Catalonia". During his speech, Catalonia’s president presented numbers to back up the claims of the economic boost that an independent Catalonia would enjoy and he insisted that the country is attracting foreign investments.

The Catalan company Abertis reached an agreement with the minority shareholders of its Italian subsidary, A4 Holdings, to buy an additional 22.52% of the business' assets. The group will pay a total amount of €125 million, €89 million by the end of July, 2017 and the final €36 million by the end of January, 2018. As a result of the transaction, Abertis will now control 85.36% of A4 Holding, reinforcing its growth strategy and, in particular, its business in Italy, an attractive market for the group. The company said in a press release that the deal “demonstrates Abertis' ability to grow internationally in an attractive way while maintaining its financial discipline”. The purchase also fits with its management strategy which, according to the company, “allows investments in assets it knows well and where it faces no competition, reducing its operational risk profile”.

Catalan Minister for Territory and Sustainability, Josep Rull, and Catalan Minister for Business and Knowledge, Jordi Baiget, called for a “clear”and “verifiable”calendar for the Mediterranean Railway Corridor. They voiced these demands to the Spanish Minister for Public Works, Íñigo de la Serna, during the meeting of the Strategic Board for the Mediterranean Railway Corridor in Madrid. In response, de la Serna promised to promote this key infrastructure, which is set to transport freight and passengers non-stop from Gibraltar to Central Europe along the Mediterranean coastline, and explained that the delays in the construction resulted from a “lack of administrative capacity”to carry them out. The Board gathers together representatives from the parliamentary groups in the Catalan chamber, trade unions, business associations, chambers of commerce, professional colleges, universities, chartered institutes, and city halls.

The North American giant Amazon will open a new logistics center in Martorelles, 20 kilometers north of Barcelona, aimed at serving the European market. The 30,000 m2 plant will become operational in the fall and will be located in Martorelles’Can Roca business park. The new center will initially employ 200 people but is expected to create 650 jobs within the next three years. Martorelles’center will consolidate Amazon’soperations in Catalonia. It has already set up two plants near Barcelona while the main logistics center—which will be Amazon’s biggest in the south of Europe and will be located next to Barcelona’s ‘El Prat’airport—is expected to be operational by fall.

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”.

Hong Kong-based multinational Thunder Power, which specializes in electric vehicles, is planning to open an R&D center in Catalonia. The center will become operational in 2018, involve an initial investment of €80 million, and create 200 jobs, a company statement revealed last Thursday. The group is also considering building a plant in Catalonia for assembly and distribution. This project will be ready by 2020, will create 1,000 jobs, and could produce up to 50,000 vehicles per year. The agreement was signed during the unveiling event of the first running prototype at the prestigious Eaton House in Hong Kong. Over 250 business professionals from Barcelona, Catalonia, and Hong Kong participated in the showcase, including the Catalan Minister for Business and Knowledge, Jordi Baiget, and the Second Deputy Mayor of Barcelona, Jaume Collboni.

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.

Spanish President, Mariano Rajoy, will visit Catalonia this Tuesday “to discuss infrastructures”, Spanish governing People’s Party (PP) confirmed last week. However, left wing pro-independence ERC already admitted having “few expectations” regarding the visit and the measures Rajoy may announce. “If he expects to buy us off through promises that won't be kept, he better think twice,” said ERC’s spokesman, Sergi Sabrià. According to ERC, one of the main parties within the governing coalition ‘Junts Pel Sí’, the only solution to “the Catalan problem” will come by putting out the ballot boxes in a referendum. “There is no other option,” stated Sabrià. However, ERC’s spokesman insisted that they will listen to Rajoy’s offer, as they have “always done” but insisted that the party “won’t give up on anything” either.

The so-called Mediterranean Railway Corridor, a long-awaited piece of infrastructure which is set to transport freight and passengers non-stop from Gibraltar to Central Europe along the Mediterranean coastline, is one of the most representative examples of Spain’s lack of investment in Catalonia. Despite being essential not only for the Spanish economy but for the entire European economy as well, its construction has been repeatedly delayed. Even the European Commission has called for “cooperation between administrations” to implement the Corridor, which is regarded as a key infrastructure for Europe. Moreover, the delays in the construction of the Corridor are affecting private investment, the Catalan Government has warned. According to Catalan Minister for Planning and Sustainability, Josep Rull, the pending business investments are worth €300 million, of which €20 million corresponds to an investment from the German multinational Basf, which announced it will expand one of its plants in Tarragona.

Foreign investment in Catalonia throughout 2016 totaled €4.8billion, 1.3% less than in 2015. Indeed, 2015 had set a historic record in terms of foreign investment, registering a 57.8% growth in comparison to the previous year. Despite this slight decrease, 2016 represents the second best year in the historic series, according to data published this Tuesday by the Spanish Ministry for Economy, Industry and Competitiveness. Moreover, Catalonia ranks second in terms of foreign investment in Spain, Accounting for 20% of the investment and only surpassed by Madrid, which attracts 46.7% of foreign capital. Regarding Catalan exports, they totaled €5.3 billion in January, the highest figure for this month since 2000. This data confirms Catalonia as the leading territory in Spain in terms of exports followed by Andalusia, whose exports totaled €2.5 billion.

The Catalan Ministry for Business and Knowledge will invest 1.2 MEUR this year to increase Catalonia’s trade and investment office network abroad. In particular, six new centres will be opened in 2017, which will be added to the 36 which are already functioning on each of the five continents. The new offices will be located in Havana, Los Angeles, Tehran, Zagreb, Amsterdam and Nairobi. Thus, Catalan business will be represented in 109 economic regions. “Now Catalonia’s presence in the business field worldwide will be comparable to and even bigger than that of other states”, explained Núria Betriu, Director of Industry of the Catalan Department for Business and Knowledge.

Swedish multinational company IKEA will set up its distribution centre for online purchases in Valls, 15 kilometres north of Tarragona. The centre will not only supply the whole of the Spanish State but also Portugal and the South of France. Ikea aims to buy a 50,000 m² smallholding located next to the ‘DC 1 – Distribution centre’ which the company already has in the same industrial park. Thus, the two Ikea centres in Valls will be located in a strategic enclave, nearly at the intersection of the main highways AP7 and AP2 and equally close to Tarragona’s port. Ikea will pay 2.8 MEUR for the plot to Incasòl, the Catalan Government's subsidiary that manages public land throughout Catalonia. The new distribution centre is expected to employ more than 100 workers.

Barcelona City Council will allocate almost €4.5 million for the maintenance, restoration and enhancement of the architectural heritage of Antoni Gaudí’s famous Park Güell and its surroundings. This investment comes from the fee charged to enter the park, but also partly from the city tourist tax, Barcelona Councillor for Architecture Daniel Mòdol stated. Since October 2013, tourists visiting the spot have had to pay an entrance fee. The Councillor of Gràcia District in Barcelona, Eloi Badia, explained that the remodelling aims at controlling the influx of visitors and recovering the daily life of the neighbourhood as well as the cultural and commercial activity of the area. According to Badia, many neighbours believe that they have to pay to enter the enclosure, but locals are not charged. “We want neighbours to understand that they can access [the park] for free, and we want to recover the cultural and daily activities”, he stressed.

There has been a recent turn in British investment in Catalonia. While Foreign Direct Investment (FDI) from the United Kingdom in the region was on a downward trend between 2013 and last June, the situation has reversed and Catalonia currently accounts for 4,4% of British FDI in Spain. Indeed, Catalonia is the third territory of Spain in terms of volume of British FDI. Ahead of Catalonia, stand only Madrid and the Basque Country, which received, respectively, €3,258 and €828 million from the UK between 2013 and last June. In the same period, Catalonia received a gross flow of €546 million, according to the Barometer on the Climate and Perspectives for British Investment in Spain and Catalonia, a report that analyses the evolution of direct investment from British companies in Spain.