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The Spanish Government replies that dialogue can only take place “within the law” and respecting “the national sovereignty”, “two red-lines” that cannot be questioned. The Catalan Government said the Commission should consider Catalonia as “a very good ally to build Europe’s future”. The day before, in Barcelona, Viviane Reding, European Commissioner for Justice, had asked the Spanish and Catalan authorities “to talk” with “an open attitude” and “without red-lines” in order to remain “united”. The European Commission broke its supposed neutrality in the political conflict regarding Catalonia’s future within Spain, despite it officially considers the issue to be Spain’s internal affair. The Commissioner for Justice, Citizenship and Fundamental Rights acknowledged “to understand” the Catalan claims, but she refused to say whether citizens should be allowed to hold a self-determination vote. However, she stated that if independence was declared, Catalonia would no longer be part of the EU.

The new Tax Administration of Catalonia (called ‘Tributs de Catalunya’) has been launched on Thursday in a ceremony chaired by Artur Mas, the President of the Catalan Government. Mas highlighted that “all of this is not against the Spanish State” but “an investment for a better Catalonia”. The new body was created from merging the existing Catalan Government’s Tax Agency and the ones of the four Provincial Councils (Barcelona, Girona, Lleida and Tarragona). Its creation was already foreseen in the Catalan Statute of Autonomy approved by the Spanish Parliament and the Catalan people through a binding referendum in 2006. It will start with 53 branches, which will mostly deal with municipal taxes. Gradually it will dispose of up to 200 offices dedicated to ensure Catalonia’s fiscal sufficiency. The project was launched in September 2012, aiming to build “a state structure” that would ultimately be able to collect all the taxes generated in Catalonia if needed.

The Spanish nationalist party UPyD (Unión, Progreso y Democracia) has managed its motion against Catalonia’s self-determination to get the support of the governing People’s Party (PP) and the main opposition group, the Spanish Socialist Party (PSOE). The rest of the parties in the Spanish Parliament have opposed the initiative presented by the group led by Rosa Díez, who asked a few months ago to cancel Catalonia’s autonomy and self-government institutions. UPyD’s motion has been approved with 272 ‘yes’ votes, 43 ‘no’ ballots and 1 abstention. The text states that the Spanish Parliament “explicitly and strongly rejects the secessionist plan of the Catalan Government”, mentioning two resolutions approved in 2013 by the Catalan Parliament. In addition, it asks the Spanish Government to “continue using all the tools foreseen in the Constitution and in the whole of the legal framework to guarantee the rule of law”.

The second meeting of the so-called National Alliance for the Right to Self-Determination of Catalonia (Pacte Nacional pel Dret a Decidir) has agreed to focus their efforts on making it possible for Catalans to vote on their own collective future. More than 1,500 organisations are part of this Alliance, including institutions, political parties, trade unions, business organisations, professional associations, NGOs, cultural organisations and political pressure groups. Not all the participating organisations back independence from Spain, but they all fully support Catalonia’s right to decide on its future as nation. In the last few months, many organisations have joined the Alliance, which had its first meeting in June. On Wednesday they analysed the current situation and have agreed to campaign for the right to hold a free and democratic self-determination vote, putting specific ideologies aside.

The President of the Catalan Government, Artur Mas, was responding to the recent concerns raised by the President of Spain’s main employers’ association CEOE and by a group of 60 German businesspeople. Mas praised the “strength” of Catalonia’s economy, being “the most dynamic in southern Europe”. He stressed that Catalonia is leading the attraction of foreign investment in the whole of southern Europe. Furthermore, in the first 6 weeks of the current year, German companies have already announced €131 million of direct investment in Catalonia. Spanish nationalist parties have stated that the self-determination claims create instability and companies do not like this. Mas replied that Catalonia “has already tried out absolutely everything [to better fit within Spain] and the answer has always been the same: ‘no, no and no, and ten thousand times no’”.

After a great controversy and outraged reaction from businesspeople, politicians and academics, the Spanish Government has amended its previous decision and on Tuesday evening it announced that it will publish the so-called fiscal balances. This financial instrument shows how much money the citizens and companies from a territory give to the central government and how much of this money comes back in form of funds, investments and services. Previous studies showed that Catalonia has been giving away an average of 8% of its GDP each year since 1986, which represents 6 times the entire Marshall Plan in comparable currencies. The Spanish Government was supposed to publish the fiscal balances in December but a month later it announced it would not do so since they were “used to foster Catalonia’s independence” claims. Catalan parties warned Rajoy not to alter the figures and calculation to produce the result he wishes.

Three parties, which between them represent 63% of the Catalan Parliament, registered a second bill, identical to the motion approved two weeks ago, in order to ensure that the Spanish Parliament will discuss it before the summer. January’s motion and this latest bill both ask the Spanish Parliament to transfer the powers to organise referendums to the Catalan Government. The parties are using their MPs in Spain’s Lower Chamber to file their own bill and put it earlier in the plenary’s planning. As Spanish Parliament groups they are entitled to register a certain number of bills to be debated within the next two or three months. Otherwise, there was a risk that the Catalan Parliament’s motion would have to wait 9 months to be debated.

The Catalan business community is deeply annoyed with the Spanish Government for not publishing transparent data on Catalonia’s fiscal contribution to the rest of Spain and therefore not recognising the fiscal deficit. The Spanish Finance Minister, Cristóbal Montoro, was supposed to issue the so-called fiscal balances last December but their publication was inexplicably delayed. Last Friday, in late January, Montoro announced the fiscal balances would no longer be calculated and published in the present form; instead, he would publish in March the “regionalised public figures” stating the costs of public services per citizen because the fiscal balances were “incomplete and incoherent”. However, on Tuesday, the Minister recognised that they were “correct” but “wrongly used” to support Catalan independence claims.

Alejo Vidal-Quadras, Vice-president of the European Parliament and famous for his strong Spanish nationalist stances, has quitted the People’s Party (PP) after 30 years of membership. Vidal-Quadras has joined the newly-created VOX party, a populist ultra-nationalist force defending a total recentralisation of Spain. The Europarliament’s VP criticises the Spanish PM Mariano Rajoy’s “diagnosis” and “solutions” for the “economic, institutional, moral and national unity” crisis the country is going through. However, after 15 years of being Euro MP for the PP, a few weeks ago it was revealed that the party did not want him on the list for the next European elections. Vidal-Quadras might lead VOX in the next electoral race.

The People’s Party (PP) is holding a convention in Barcelona, with leading figures of the party, including PM Mariano Rajoy, to reject Catalonia’s self-determination and independence. On Friday, the PP’s Secretary General, María Dolores de Cospedal, stated that her party “will not allow Catalonia to split from Spain through machete strikes”. She added that “no one can bite off [a chunk of] a country” and that an independent Catalonia “will be born in bankruptcy”. In addition, the leader of the PP’s Catalan branch, Alícia Sánchez-Camacho, accused the Catalan President of “imposing” the self-determination vote. Besides, she emphasised that the PP “had suffered a lot” in the Basque Country, which is also happening in Catalonia. Within the convention there is a conference of a former PP member who chairs the Association of Terrorism Victims.

All the opposition parties except the Left-Wing Catalan Independence Party (ERC), which shares a parliamentary stability agreement with the governing Centre-Right Catalan Nationalist Coalition (CiU), have criticised the Catalan Government’s budget for 2014 – which amounts to €29.31 billion – for being “anti-social”. The Catalan Socialist Party (PSC), the People’s Party (PP) – which runs the Spanish Government, the Catalan Green Socialist and Communist Coalition (ICV-EUiA), the anti-Catalan nationalism party Ciutadans (C’s) and the radical left-wing and independence party CUP all opposed the budget proposal. The CiU and ERC defended the bill and have accused the other parties of “not presenting real alternatives”. The budget’s approval was delayed by a month after the PP appealed against the bill because it includes €5 million for a consultation vote.

The leadership of the Catalan Socialist Party (PSC) has decided to remove the 3 MPs who supported Catalonia’s self-determination from their positions within the party organisation and at the Catalan Parliament. However, the MPS were neither expelled from the party, nor from the parliamentary group. This way, the PSC avoids passing from 20 to 17 MPs and therefore becoming the 4^th largest group at the Catalan Parliament, behind the 19 MPs of the People’s Party. In the last few days, the PSC leadership was insisting that the 3 MPs should quit the Parliament and leave their seat to the next person on the list. But the rebel MPs rejected this idea since, according to them, they represent a share of the voters who elected PSC representatives because they ran in the last elections supporting the organisation of a legal self-determination vote this term.

The Bureau of the Spanish Parliament has accepted a debate on the Catalan Parliament’s bill requesting the transfer to the Catalan Executive of the powers to organise referendums, using Article 150.2 of the Spanish Constitution. The Bureau, totally controlled by the People’s Party (PP), has not discussed the contents and has only approved requesting the Catalan Parliament to send the bill’s full dossier, the step before putting the bill on the agenda. The motion would be debated in September, although there is a chance it could be rescheduled for June. However, Catalan parties will register an identical bill at the Spanish Parliament to discuss it even earlier, probably in March. The bill was approved by the Catalan Parliament with 87 ‘yes’ votes, 43 ‘no’ votes and 3 abstentions that considered the request was slowing down self-determination.

The Catalan Parliament has approved a resolution to formally request the Spanish Parliament to transfer the powers to organise referendums to the Catalan Government, following Article 150.2 of the Constitution. This mechanism will allow the Catalan Executive to directly call a self-determination referendum, a similar formula to the Scotland case. 87 MPs (64.4% of the Parliament) have backed the proposal and 43 MPs (31.8%) have voted against it. The 3 MPs of the radical left-wing and independence party CUP have abstained, arguing they do not think Spain has anything to say on Catalonia’s self-determination. Furthermore, 3 MPs from the Catalan Socialist Party (PSC) have also backed the text, breaking the party leadership’s instructions. This vote is a true earthquake for the PSC, which might eventually split up.

The People’s Party (PP), which runs the Spanish Government and holds an absolute majority in the Parliament and Senate, closed the door on launching a broad debate on Spain’s territorial organisation and on reforming the Constitution accordingly. The objective of this reform would be to keep Catalonia within Spain by answering some of the Catalan claims and working towards an improved relationship. “We are not willing to open debates that divide the Spaniards”, stated Alfonso Alonso, the PP Spokesperson at the Spanish Parliament. The Secretary General of the Spanish Socialist Party (PSOE), Alfredo Pérez Rubalcaba, had sent a letter to the President of the Spanish Parliament, asking him to create “a body” to debate on a broad territorial reform.