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The Spanish Finance Minister, Cristóbal Montoro, has confirmed a new fiscal measure to increase the Autonomous Communities’ revenue, benefiting the Catalan Government as well. After the Council on Fiscal and Financial Policies (CPFF) held on Tuesday evening, Montoro confirmed that interest rates will be set at 0% for the loans given to the regional governments since 2012 through the Liquidity Fund (FLA). The measure will also be in place for 2015. However, the Autonomous Communities that have already met the deficit targets will also be granted a 0% rate for 2016 and 2017. The Catalan Government welcomes the measure but is sceptical about its details. The Catalan Finance Minister, Andreu Mas-Colell, demanded an entirely new funding scheme, since the current one expired a year ago. Montoro is not renewing the inter-territorial funding scheme and instead is using this loan system, which obliges regional governments to return the transferred funds.

Hundreds of citizens have pled guilty in solidarity with the President of the Catalan Government, Artur Mas, Vice President, Joana Ortega, and Catalan Minister for Education, Irene Rigau, who are being prosecuted by the Spanish authorities for having authorised and co-organised the symbolic vote on independence that took place on 9 November. On Tuesday morning, citizens queued to plead guilty in front of Catalonia’s Supreme Court. This comes a day after the Court launched a judicial investigation on the criminal complaints against three members of the Catalan Government filed by a few individuals, extreme-right organisations and the Spanish Public Prosecution Office, whose Director is directly appointed by the Spanish Government. The solidarity campaign is organised by the civil society association that organised the largest pro-independence rallies of the last 2 years, the Catalan National Assembly (ANC). Many leading politicians are also pleading guilty and all the parties in Catalonia, except the Spanish nationalist ones, have come out in protest against the penal prosecution of the Catalan Government on account of a political issue.

Catalonia’s Supreme Court (TSJC) has accepted all the criminal complaints filed against the President of the Catalan Government, Artur Mas, Vice President, Joana Ortega, and Catalan Education Minister, Irene Rigau, for having authorised the non-binding and symbolic vote on independence that took place on 9 November. However, it rejected all the complaints filed against other politicians and civil servants, such as mayors and school directors. The TSJC will finally launch a judicial investigation for “alleged disobedience” after charges were pressed by several individuals and organisations, including the Spanish Public Prosecution Office, whose Director is appointed by the Spanish Government. In fact, the official prosecution of members of the Catalan Executive by the Spanish authorities has been extremely controversial. Pro-independence civil society organisations are organising a solidarity campaign, through which individual citizens will plead guilty for participating in November’s vote. Meanwhile, the Catalan Government insisted they acted in the correct manner.

Spain’s Director of the Public Prosecution Office, Eduardo Torres-Dulce, has announced his resignation “for personal reasons”. However, it is well-known that Torres-Dulce has had several arguments with the Spanish Government, run by the People’s Party (PP) and chaired by Mariano Rajoy. The latest argument was about prosecuting the Catalan President and other members of the Catalan Government for the symbolic vote on independence held on 9 November. Several PP members announced the penal actions before Torres-Dulce had given the instruction to press charges. At that time, Torres-Dulce denied having been pressured by the Spanish Government, but many voices criticised the absence of a separation of powers. On top of this, the main public prosecutors in Catalonia initially rejected the criminal complaint, but Torres-Dulce – appointed by the Spanish Government – obliged them to file it. Furthermore, he has also had many arguments with the PP on account of the numerous corruption scandals being investigated.

The left-wing independence party ERC has joined the governing centre-right pro-Catalan State coalition CiU in allowing the Catalan Government’s budget bill for 2015 to continue its parliamentary approval process. Although critical of the budget proposal, the ERC backed the centre-right coalition in the hope that Catalan President and CiU leader Artur Mas will call early elections in the coming weeks, which are likely to be transformed into a ‘de facto’ referendum on independence. The CiU and the ERC have a different approach towards any such elections and have been negotiating for a number of weeks. The approval of the 2015 budget has become an additional element of the talks, a fact which has been criticised by the other parties. On Thursday, the CiU and the ERC rejected the full amendments filed by the rest of opposition parties. 

The Spanish Finance Minister, Cristóbal Montoro, has announced new measures “to reduce the interest rates” paid by the Autonomous Community governments, including that of Catalonia. A few hours early, Spanish Finance Ministry sources told the CNA that the interest rates of the loans given to the regional governments through the Liquidity Fund (FLA) and the fund to pay providers would soon be lowered to 0%. Instead of modifying the pre-crisis-designed inter-territorial funding scheme, which legally expired a year ago, or authorising the Autonomous Communities to address the financial markets, the Spanish Government has been issuing loans with high interest rates to fund the regional executives. The Catalan Finance Minister, Andreu Mas-Colell, was sceptical about the announcement and urged the Spanish Government to approve a new inter-territorial funding scheme.

The Catalan Government is now managing the sale of the 150 hectares owned by La Caixa on which the BCN World holiday resort should build its 6 macro-casinos. On Thursday the bank and the Catalan Executive signed the agreement, which comes the day after the private investor Veremonte announced it was postponing the land purchase once again. Veremonte had an exclusivity agreement to buy 500 hectares of land before December 10 at midnight for €380 million, but it postponed the purchase because the urban planning details were still unknown. However, the core of BCN World's project, which is the 6 Las Vegas style hotels and casinos as well as a luxury shopping mall, only takes up 150 hectares. The Catalan Government decided to jump in to strengthen the project and guarantee that the main plots will be available for private investors to build the casinos. It will manage the sale for the next 18 months, while the definitive and detailed urban planning for the area should be approved in July 2015. The other hectares will be directly sold by La Caixa.

Miquel Iceta, First Secretary of the Catalan Socialist Party (PSC), is currently rejecting a vote on independence and is proposing a broad Constitutional Reform to grant Catalonia a better fitting within a truly federal Spain. On Wednesday evening, Iceta exposed his proposals in a conference, emulating what the main pro-independence leaders – Artur Mas and Oriol Junqueras – had done one and two weeks ago. On Thursday, he was interviewed by a radio station about his proposals and he was asked about would happen if Catalans were to reject the Constitutional Reform he is pushing for. In such scenario, the leader of the PSC – which is part of the Spanish Socialist Party (PSOE) – stated that he would support the organisation of a referendum on independence. However, before voting on breaking up with Spain, Iceta insisted on the need to vote on a new agreement set through a Constitutional Reform.

Veremonte has decided not to buy the land to build the macro-casino and holiday resort yet and it will wait until it has a better knowledge of the town-planning project's details, which are currently being defined by the public authorities. The main company behind the holiday resort had an exclusivity right to purchase some 500 hectares of land from a Caixabank's subsidiary until December 10 at midnight for €380 million. Veremonte has confirmed it will continue to work on the $6 billion BCN World project with Hard Rock, Melco, Value Retail, Melià and Caesars Entertainment and it could buy the land at a later stage. After knowing about Veremonte's decision, the Catalan Government announced it had reached an agreement with Caixabank to manage the purchase of 150 hectares of land during 18 months at no cost, allowing other companies to buy some plots. They have also confirmed that the project will carry on, "with or without Veremonte". The first version of the town-planning project should be issued in later January and the definitive version should be approved during the summer months, in order to allow construction as from autumn 2015. 

Miquel Iceta, First Secretary of the Catalan Socialist Party (PSC), proposed his road map for the coming two years: no early elections and broad Constitutional Reform to better fit Catalonia into a federal Spain. On Wednesday Iceta held his own conference after those of the Catalan President and leader of the centre-right pro-Catalan State coalition (CiU), Artur Mas, and the left-wing independence party (ERC), Oriol Junqueras. While the two others support independence, Iceta opposes it. He totally rejected the road maps proposed by Mas and Junqueras and insisted on the need to work "on the real problems of Catalans", such as poverty, unemployment, budget cuts in public healthcare, etc. However, the PSC leader admitted that "there will be no solution without a vote", but "a real vote". Iceta said that before breaking up with Spain, Catalans should be allowed to vote on "a new agreement" to remain in Spain. In order to facilitate such a new agreement, he proposed that the Spanish Government cancel part of the Autonomous Communities' debt.

Meetings between pro-independence politicians and civil society organisations are being held and will increase over the next few days, in order to explore the possibilities of forming a shared electoral list to run in early Catalan Parliament elections, which should be transformed into a 'de facto' referendum on independence from Spain. However there are two main obstacles for this scenario. Firstly, the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, is reluctant to call early elections if a shared candidature with the left-wing pro-independence party ERC - open to many independents - is not formed. Secondly, the President of the ERC, Oriol Junqueras, wants to run separately, highlighting the need to debate on social issues and corruption as well. This Wednesday, Mas and Junqueras met and have agreed to increase their talks in the coming days.

Early elections at the Catalan Parliament transformed into a ‘de facto’ referendum on independence is the only formula left to allow citizens to hold a self-determination vote. However, parties supporting self-determination, and particularly those supporting independence, do not share the same approach about how to ensure it will become a true plebiscite, nor on the exact steps that should follow if they were to win.  The President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, wants to run through a broad single list grouping many ideologies together. However, left-wing parties are against this formula and want a debate on social issues and corruption. Both approaches pretend to be the one that guarantees the highest number of pro-independence votes. At present, parties and civil society organisations are holding intense talks to explore a consensual way out.

The President of the Left-Wing Catalan Independence Party ERC, Oriol Junqueras, has explained his own road map to allow citizens to vote on independence from Spain and build a new state. Junqueras proposed running in immediate early elections through different pro-independence lists with shared elements and opened to independents, in order to respect diversity. The ERC leader differed from the proposal of running through a single electoral list made by the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas. Junqueras insisted on the need to answer to the social and economic concerns of many citizens in addition to those about independence. Should they altogether obtain a majority, the different pro-independence candidatures should form a national unity government and start building the new state from day one. He particularly emphasised the need to include those who did not voted for independence in the constituent process, which should be finally ratified in a referendum.

The Catalan Government presented on Tuesday its budget proposal for 2015, which has a €22.48 billion spending but only a €19.98 billion revenue. The Catalan Finance Minister, Andreu Mas-Colell, insisted that spending cannot be further reduced since no further budget cuts can be implemented without seriously damaging public services. In fact, the current budget keeps social spending levels of 2014, which represent 71.2% of the new budget. In addition, public employees' full salary will be restored, after it had been lowered for the last 3 years. The 2015 budget posts a 0.7% deficit (€1.44 billion). However, there is a €2.5 billion difference between spending and revenue that should mostly be covered with €2.19 billion from Spanish Government's pending debts. However, Mas-Colell does not rule out being granted a higher deficit target, since the current one is "unfair" and is not in line with the Catalan Government's austerity measures already adopted. Furthermore, the Spanish Government has reduced funds from the regular funding scheme by 10.7% between 2013 and 2015, a €2 billion reduction, despite the economy is recovering. 

The Catalan Government has released on Monday the definitive turnout figures of the citizen participations process of November 9, in which Catalans were able to cast their ballot until November 25. Finally, 2,344,828 people participated in this non-binding vote on independence, 2,305,290 of whom did so on November 9. After the main voting day, 7 polling stations remained opened throughout Catalonia for those who wanted to participate within the following 15 days. 80,91% of citizens voted for full independence from Spain; 10.2% voted for a Catalan State within a federal or confederated Spain; and 4.49% voted to keep the current Autonomous Community model or for the recentralization of powers. This symbolic vote was carried out despite the total opposition of the Spanish authorities, including criminal prosecution threats. In fact, Spain’s Pubic Prosecution Office, whose Director is directly appointed by the Spanish Government, has pressed criminal charges against the Catalan President, Vice President and Minister for Education for authorising and co-organising such a symbolic consultation process.