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The Catalan executive and radical left pro-independence CUP are negotiating the fiscal law, the so called Accompaniment Law, for the 2017 budget. The draft is set to include tax reforms as well as the introduction of new taxes especially oriented toward avoiding property speculation. One of the main hurdles has to do with the reform of income tax, which foresees the elimination of tax relief for property purchase for those who earn more than 30,000 euros per year. By applying this modification the Government could collect 11 MEUR in 2018, negotiators estimate. CUP also aimed to increase income tax for those who earn more than 60,000, but this proposal is not apparently on the table.

Governing cross-party list ‘Junts Pel Sí’ and their main partner in the Parliament, radical left CUP are putting the final touches to a referendum proposal. Both pro-independence forces have agreed to hold a vote by September 2017 “at the latest” and base it on a “clear question” which could be answered with ‘yes’ or ‘no’ (to independence). Although earlier this week CUP suggested holding the referendum next July, the radical left party admitted that it is not “for them alone to decide”, CUP MP Anna Gabriel said this Wednesday in an interview with Catalan television TV3. Gabriel also insisted that the referendum will be held “regardless of the Spanish State’s refusal”. In this vein, Gabriel considered that calling a referendum agreed with the Spanish State has to be regarded as “a technique” for the international audience.  

This Thursday is the first anniversary of the Catalan Elections of the 27th of September 2015, which led to the first pro-independence majority in the Parliament. Cross-party list ‘Junts Pel Sí’, which gathered together representatives from civil society and politicians such as left wing ERC’s leader, Oriol Junqueras, former MEP Raül Romeva and former President Mas, amongst others, won the elections, obtaining 62 MPs in the 135-seat Catalan Chamber. However, they didn’t obtain an absolute majority and negotiated with radical left pro-independence CUP, who got 10 MPs, in order to have a majority in favour of independence in the Catalan Chamber. After Mas failed twice to be invested as President, since CUP repeatedly refused to support him, former Mayor of Girona and President of the Association of Municipalities for Independence (AMI), Carles Puigdemont, emerged as the candidate of consensus. Then, a term of office defined as ‘exceptional’ started, with the aim of launching a pro-independence roadmap and putting in place the basis for the future Catalan Republic.

Governing cross-party list ‘Junts Pel Sí’ and radical left CUP, the two pro-independence forces in the Parliament, put in place this Friday the basis for the future Catalan Tax Agency. It will be constituted by three bodies: the Catalan Tax Agency, the Board of Taxes and the Fiscal Council. The latter is one of the main novelties of the document registered by the pro-independence groups. The Fiscal Council, a body which doesn’t exist within the Spanish framework, will include representatives from both the public and private sector and will be responsible for advising the Government. The proposal will have to be put to vote after this summer as one of the three ‘laws of disconnection’ from Spain that both groups plan to approve, according to the pro-independence roadmap.

47.7% of Catalans would vote for independence while 42.4% would opt to keep the current status quo. This is the first time that ‘yes’ surpasses ‘no’ since 2014, when the 9-N symbolic vote on independence was held. Moreover, the percentage of those who don’t support Catalonia’s independence has dropped by 5 points, in comparison to the last poll released by the Centre of Opinion Studies (CEO), in March 2016. The survey, run by the Government, also showed that governing cross-party list, pro-independence ‘Junts Pel Sí’ would win the elections again, if they were called in the coming weeks, obtaining between 60 and 62 MPs in the Parliament; currently they hold 62 seats. Alternative left alliance ‘Catalunya Sí que es Pot’ would come second, nearly doubling the number of seats they got in the 27-S Catalan Elections. 

Pro-independence forces, governing cross-party list ‘Junts Pel Sí’ and radical left CUP, approved this Monday an agreed proposal which foresees the following steps to take on the roadmap towards Catalonia’s independence. The document establishes that the “Constitutive Process” will be divided into three stages: first there will be a participative process amongst the citizens, the second phase will imply passing the so-called three laws of disconnection, calling for new elections and writing the draft of the Catalan Constitution. At this point, the text mentions a “democratic unilateral mechanism which will allow to call for the Constitutive Assembly”, the body which will be responsible for writing the Catalan Constitution. The last stage will be a referendum to put this new Constitution to vote. 

The pro-independence parties in the Catalan Chamber, governing cross-party list ‘Junts Pel Sí’ and radical left CUP, have expressed their differences regarding the vote of confidence on Catalan President, Carles Puigdemont, which will be held in September. While ‘Junts Pel Sí’ consider voting in favour of Puigdemont’s presidency to imply backing the budget for 2017, CUP see things differently and stated that renewing the confidence in Puigdemont is part of the agreed pro-independence roadmap but not necessarily linked to the bill. The Catalan Government’s spokeswoman, Neus Munté, considers the budget an “indispensable tool” for the pro-independence roadmap to move forward.

Radical left pro-independence CUP have formally asked Catalan President, Carles Puigdemont, to convene a summit at Catalan Government headquarters in order to agree on the terms of a unilateral referendum on independence. This is CUP’s preferred formula, since in view of the last Spanish Election results, they consider ultimately holding a referendum in Catalonia agreed with the Spanish State to be no longer possible. CUP has suggested inviting to this summit all groups which are for holding a referendum, meaning pro-independence cross-party list ‘Junts Pel Sí’, alternative left alliance ‘Catalunya Sí que es Pot’ and also alternative left ‘En Comú Podem’, which is not represented in the Catalan Parliament but won the recent Spanish Elections in Catalonia. According to CUP, the unilateral referendum on independence should be “binding” and take place within a year.

The possibility of holding a unilateral referendum on independence has not been rejected by the Catalan Government. According to Catalan Government Spokeswoman, Neus Munté, this option will be considered as long as it has “total democratic legitimacy” and “international homologation”. However, Munté emphasised that the roadmap towards independence, which foresaw an 18^-month term of office and constitutive elections afterwards, is still “in force”. “We don’t give up on the pro-independence roadmap but we are open, of course, to listening to all those options which would go in the same direction”, she stated. The possible celebration of a unilateral referendum on independence was first raised by radical left pro-independence CUP in the last weeks and it has been brought into the spotlight of the Spanish electoral campaign by several Catalan parties.

Catalan President, Carles Puigdemont considers pro-independence radical left CUP’s veto on the bill for 2016 to “mark a turning point” and assumes that the stability agreement reached between pro-independence forces CUP and cross-party list ‘Junts Pel Sí’ is now broken. However, Puigdemont nuanced that this doesn’t mean that the current term of office is over but assured that from now on ‘Junts Pel Sí’ will rule in minority, with the 62 MPs they have in the 135-seat Catalan Parliament. During a meeting with the Catalan executive held this morning, right before the debate over the budget, Puigdemont stated that the bill for 2016 won’t be passed “at any price” and that the Government’s project is not “for sale” as the main goal continues to be achieving independence

The stability of the parliamentary term in office and the relationship between the Catalan Government and the radical left-wing party CUP are at risk after the latter decided on Tuesday to maintain its total opposition to the 2016 draft budget bill. The Catalan Vice President and Catalan Minister for Tax Office, Oriol Junqueras, said that the decision will have “extremely severe consequences” and that “social services” will be particularly affected. The Catalan Government spokeswoman, Neus Munté, warned that the stability of the current term was “hit” and regretted that CUP didn’t respect the agreement with the pro-independence cross-party list ‘Junts Pel Sí’, the main party in the Parliament, through which they committed to “guarantee parliamentarian stability”. Munté also warned that CUP’s veto “will have consequences” but emphasised the government’s aim to “continue working to put Catalonia at the gates of independence”. CUP’s rejection of the bill, which they considered insufficient and still too “autonomic”, forces the Catalan Government to extend the 2015 budget.

Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras “totally” rejected the idea that Catalonia will face new elections if pro-independence radical left CUP reject the draft budget for 2016 presented by the Government. In an interview with Catalunya Radio, he urged pro-independence cross-party list ‘Junts Pel Sí’ and CUP to “make the most of the 72 seats majority in the Parliament” rather than thinking about potential new elections. Junqueras also refused to start negotiating with other groups in the Catalan Chamber if CUP keeps up their veto on the bill, as it would mean “renouncing the pro-independence roadmap”.

There won’t be any agreement on the draft budget for 2016 unless the Catalan Government presents a new proposal including radical left CUP’s “proposals, demands and points of view”. This is what CUP MP, Eulàlia Reguant stated this Tuesday after registering theamendment to the entire budget proposal that the Catalan Vice President and Minister of Economy, Oriol Junqueras, presented last week. One of the anti-capitalists’ demands is to disobey the Spanish Government deficit targets and promote “more ambitious” tax reforms. On the other hand, the Catalan Secretary for Economy, Pere Aragonès warned that it’s “necessary” to pass the budget in order to put Catalonia “at the gates of independence”.

The first of three laws which will enable Catalonia to start the disconnection process from Spain has been registered this Tuesday. Pro-independence cross-party list ‘Junts Pel Sí’ and radical left CUP, which represent a majority of 72 pro-independence seats in the Catalan Parliament, registered the law for the creation of the Catalan Agency for Social Protection. Although the law represents a new structure, it is set to manage the current competences that the Catalan executive already has on this matter. Therefore, both parties admitted that the law is still “autonomic”. However, according to ‘Junts Pel Sí’ MP Chakir el Homrani “the Agency is necessary to manage the social security scheme, as happens in every country”.

The pro-independence forces in the Catalan Parliament, governing cross-party list ‘Junts Pel Sí’ and radical left CUP, reaffirmed this Thursday the agreement to start building the Catalan Republic, which was approved by the Catalan Chamber on the 9th of November and later suspended by the Spanish Constitutional Court (TC). Both parties have supported the motion presented by CUP which aimed to relight the proposal. Thus, 71 MPs of the 135 sitting in the Parliament voted in favour, while the 11 MPs from alternative left ‘Catalunya Sí que es Pot’ have abstained. Spanish Unionist ‘Ciutadans’, Catalan Socialist Party (PSC) and Catalan People’s Party (PPC), which is the Catalan branch of the conservative and current governing party in Spain PP, voted against the motion. “We are here to do what we said we would do” stated ‘Junts Pel Sí’ MP, songwriter and anti-Franco activist, Lluís Llach. On the other hand, PPC’s Xavier García Albiol stated that the vote didn’t mean anything as “Catalonia will continue to be Spain, whether you like it or not”.