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Spain’s effort to reduce its public deficit “has been insufficient”, according to Brussels. Thus, the European Commission (EC) took this Thursday the first step in order to fine Spain, ahead of the Ecofin meeting. The fining process foresees that 20 days after this meeting, the EC could present the suggested fine, which could equal 0.2% of Spain’s GDP. According to a report released this Thursday by the EC, Spain closed 2015 with a 5.1% deficit target, far from the 4.2% established by Brussels. The report concludes that Spain’s fiscal effort fell “significantly short” of what was recommended and even “relaxed in 2015”. “Spain did not reach the intermediate target for the headline deficit in 2015 and is not forecast to put an end to its excessive deficit by 2016”. 

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.

Catalan President, Carles Puigdemont, called for “leaving” Spain “as soon as possible” and stated that Catalans “not only have to make a change of state but also a change of era” since what is currently going on in Spain “is proper of another era, one in black and white”. Puigdemont accused current Spanish Minister for Home Affairs, Jorge Fernández Díaz, who is involved in a smear scandal against two Catalan pro-independence parties, of being “anti-system” and called for “leaving” Spain “as soon as possible”. “We can’t stay any longer in such a state” stated Puigdemont. “As a helpless democrat from Madrid who couldn’t change things once said: “Basques and Catalans, run away”. 

Current Spanish President, Mariano Rajoy, stated that he “won’t renounce his right to rule” after his party, the Conservative People’s Party (PP) emerged victorious with 135 MPs from the Spanish Elections but without an absolute majority. Rajoy’s first choice is to reach an agreement with the Spanish Socialist Party (PSOE) and Spanish Unionist ‘Ciutadans’ but admitted that “if this would not be possible” he is open to governing in minority with occasional support from these forces. He also opened the door to possible agreements with ‘Ciutadans’, the Basque Nationalist Party (PNB) and the Canarian Coalition (CC), which would give them 175 MPs, only one seat away from the absolute majority in the 350-seat Spanish Parliament. According to Rajoy’s agenda, “it will be essential” to reach an agreement within a month.

The Spanish Elections prove that Spain remains unchangeable, according to Catalonia’s pro-independence parties. “The only change possible is through building an independent and republican Catalonia”, stated Catalan Vice President and pro-independence ERC’s leader, Oriol Junqueras, in reference to alternative left ‘En Comú Podem’, who have repeatedly insisted on holding a referendum on independence agreed with Spain. In this vein, Catalan President, Carles Puigdemont noted that the possibility of ultimately holding a referendum “is not in good health” and lamented that “nothing has changed” in Spain. On the other hand, the leader of the PP and current Spanish President, Mariano Rajoy, celebrated his victory in Madrid and assured that his party “will defend all Spaniards”. The Conservative leader pointed out that “democrats and freedom” have won the election.

Catalan President, Carles Puigdemont stated this Friday that Scotland will have “clear options” to win a second referendum on independence, as some Scottish who voted ‘no’ to independence in 2014 were afraid of being out of the EU if they separated from the United Kingdom. Now that the United Kingdom has voted for ‘Brexit’, this threat no longer exists. “Today they lost both; independence and remaining within the EU”, said Puigdemont, and assured that this should be something “to think about”. The possibility of holding a new consultation over independence in Scotland emerged this Friday, after Scotland’s First Minister, Nicola Sturgeon, admitted that a second referendum was “highly likely” to be held after the Scots voted to remain in the EU this Thursday in the EU referendum whereas the UK overall chose to leave.

Current Spanish President, Mariano Rajoy, reacted this Wednesday to the recordings published on Tuesday by Spanish newspaper ‘Público’ which revealed a conversation between current Spanish Minister for Home Affairs, Jorge Fernández Díaz, and the Director of Catalonia’s Anti-fraud Office, Daniel de Alfonso Laso, about trying to smear Catalonia’s main pro-independence parties left-wing ERC and liberal Convergència. “I just found out yesterday”, stated Rajoy and added did he didn’t know “who was Director of Catalonia’s Anti-fraud Office nor that this position even existed”. The scandal comes five days before the 26-J Spanish Elections and puts Fernández Díaz in a very sensitive position, as he is running for the Spanish Elections in Barcelona province.

CUP’s veto on the budget for 2016 has provoked not only the extension of the bill for 2015 but also other major political consequences. One of them is the vote of confidence that Catalan President, Carles Puigdemont, announced he will submit himself to. “I trusted you and I defended you until the end”stated Puigdemont, addressing radical left pro-independence CUP and added that the lefties “let down the hopes of millions of people”. Puigdemont considers the conditions which led to the agreement between the pro-independence forces after the 27-S elections to “have now changed”and therefore it will be up to the Parliament to decide whether to restore confidence in the current Government or call for new elections. “We can’t continue like this, we go nowhere with such a volatile basis”, he admitted.

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”.

The draft budget for 2016 presented by Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, doesn’t have enough support to be passed by the Parliament. Although Junqueras described the budget as “realistic”and “socially committed”, pro-independence radical left CUP considered it insufficient and still too “autonomic”, and claimed that the draft didn’t “reflect the pro-independence declaration proposal”approved by the Catalan Chamber on the 9^th of November. Thus, CUP presented their veto and urged the Catalan Government to present a new draft which would include the anti-capitalists’ proposals, such as disobeying the deficit target imposed by the Spanish executive and carrying out a deeper reform of the tax system. Catalan President, Carles Puigdemont, warned that in order to “complete the task”and put Catalonia “at the gates of independence”the Parliament should at least be allowed to process the budget. This Friday, Puigdemont accused CUP of being “destroyers”if they continue to be carried along by “ideological prejudices”and maintain their veto on the bill.

Catalan President, Carles Puigdemont together with Catalan Vice President and Minister for Economy, Oriol Junqueras met this Wednesday with radical left pro-independence CUP MPs, Anna Gabriel and Joan Garriga in order to discuss their differences over the draft budget presented by the Catalan Government. Puigdemont and Junqueras refused to go back on the budget proposal for 2016 despite CUP’s veto. “If we want to complete our task, the Parliament has to process the budget”, stated Puigdemont during the plenary session this morning. He insisted that it is necessary to agree on the numbers in order to move forward. On the other hand, the anti-capitalists reaffirmed their position and insisted on their veto. The CUP MPs warned during their meeting with the Catalan Government that “it would be nonsense to put the draft to vote because it won’t go any forward” and emphasised that the present proposal leaves “no room for negotiation”.

Catalan President, Carles Puigdemont celebrated the “consensus” that the construction of the Mediterranean Railway Corridor has amongst the political, social and economic agents in Catalonia and also amongst the regional governments involved in the construction, such as those of Valencia, the Balearic Islands and Murcia. However, he urged Spain’s executive “to listen” to their demands and also to Europe’s warnings and promote thislong-awaited piece of infrastructure which is set to transport freight and passengers non-stop from Gibraltar to Central Europe. Indeed, the European Court of Auditors reported on Tuesday that the EU “had not been effective in enhancing rail freight transport” and that the targets for “the number of freight trains and the tonnage of goods transported” on the section between Spain and France, which has still to be completed, “are far from being achieved”.

The Catalan Government’s budget for 2016 has been drafted and €700 million more is to be allocated to social spending compared to the budget of 2015, according to the Catalan Vice President and Minister for Economy Oriol Junqueras. He also stated that the Health sector will see an increase of €317 million, while the Education budget will increase by €211 million and that of Social Services will grow by €173 million. An additional 50 million more euros are to be allocated to the sectors of Universities and Research, stated the Catalan Vice President. The budget will be increased for the first time in many years, with the goal of being “realistic” and avoid “generating expectations that cannot be satisfied”. The budget will be delivered this Tuesday to Parliament’s President Carme Forcadell and opened for discussion amongst the groups in the Catalan Chamber.

“This official trip and the meetings we have held prove that Catalonia’s political process generates international interest”, stated Catalan President, Carles Puigdemont, on the last day of his official trip to London. Indeed, this is so much the case that Spain’s government sent two officials to the British capital in order to “counteract the explanations that the Catalan government has been giving first hand”, he lamented. Puigdemont made these statements on his last day in London, while visiting the headquarters of the Catalan bank ‘Banc de Sabadell’ in the City. “The European political, economic and social agents want to know first-hand what’s going on in Catalonia and why” assured Puigdemont, which “refutes the Spanish mantra, according to which the Catalan process doesn’t interest anybody”.