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The Spanish Government has finally finished the construction work and circulation tests on the last 131-kilometre stretch of railroad to France. Barcelona, Girona and Figueres are now linked by High Speed Train, although a direct connection between the Catalan capital and France will have to wait until next April. Now, passengers can travel from Barcelona to Girona in only 37 minutes and to Figueres in a total of 53 minutes. If they want to continue to France, they will have to switch trains until April, when the Spanish trains will be standardised to be able to run in France. However, from now on, the Spanish and the French High Speed railway networks will finally be connected, twenty years after the Madrid-Seville line was unveiled. The Catalan President has emphasised that Catalonia is the Autonomous Community with the smallest amount of public infrastructures in Spain.

The Spanish Prime Minister, Mariano Rajoy, has accepted the offer sent by the new Catalan President to talk about Catalonia’s claims, while keeping them “always within the Constitution”. Furthermore, he has rejected the possibility of modifying the 0.7% deficit target imposed on the Autonomous Communities for 2013. The Catalan Finance Minister, Andreu Mas-Colell, explained that, if the payment of financial interest is excluded, meeting next year’s 0.7% deficit target represents a budget surplus, which “makes no sense from an economic point of view in a context of recession”. Mas-Colell proposed that the Autonomous Communities meet a 1.5% deficit target in 2013, as they represent more than a third of Spain’s total public expenditure and Spain has been authorised a total deficit target of 4.5%.

As opposed to the rest of Spain, the PP is a small party within Catalonia. In the last Catalan elections, they got their best results ever, increasing from 14 to 18 seats in the 135-seat Catalan Parliament and obtaining 12.37% of the votes. In the last elections, the Catalan branch of the PP , led by Alícia Sánchez-Camacho, focused on immigration and the economic crisis. Now, while they are running the Spanish Government and have negotiated many austerity measures in Catalonia, the PP is focusing on fighting the “independence delirium”, as they call it. All its leaders, including Rajoy, are participating intensively in the campaign. The PP presents itself as the “useful vote” to stop Catalonia’s self-determination process, as they think of Spain as not being a pluri-national state. Polls give them between 16 and 19 MPs and they could become the second largest party in the Catalan Parliament.

The Spanish Prime Minister, Mariano Rajoy, had previously accused the President of the Catalan Government, Artur Mas, of having blackmailed him by trying to “impose the fiscal agreement or accept the consequences” in last September’s meeting, when Mas proposed a specific fiscal agreement between Catalonia and Spain. The Catalan President denied having blackmailed the Spanish PM. According to Mas, Rajoy “did not want to negotiate a fiscal agreement” as he considered that “Catalonia is not as badly treated” as Catalans say. The Catalan President said he explained to Rajoy what would happen “if the answer to all Catalan claims is always ‘no’”. “It is not a threat, it is describing the reality. The President of the Catalan Government’s duty is to inform [the Spanish PM] about Catalonia’s situation” Mas added.

Catalonia and the Autonomous Communities run by the Socialist Party (PSOE) were asking to make the Spanish Government’s deficit targets stricter and to proportionally relax those of the Autonomies. The Spanish Prime Minister Rajoy and the Autonomies run by the PP have opposed this redistribution, which would have transferred part of the flexibility allowed by Brussels to the Autonomies. In fact, when Brussels relaxed Spain’s deficit targets for 2012 and 2013, the Spanish Government did not share this flexibility with the Autonomies, which are responsible for almost 40% of the public spending and the managing of the Welfare State services. On the contrary, it made the Autonomies’ deficit targets stricter for 2013.

“In exceptional times, exceptional decisions are needed”, stated the Catalan President, Artur Mas. After the 1.5 million strong independence demonstration on September 11th, the Spanish PM’s refusal to negotiate a fiscal agreement for Catalonia, and days of speculation, Mas called for elections. He announced the decision in the Catalan Parliament’s main annual debate, in which he stated that budget cuts will continue, although “austerity cannot be the only value”. He also accused the Spanish Government of being “disloyal” and imposing stricter deficit targets on the Autonomous Communities. Catalan nationalist parties are celebrating the call for elections for giving the people a say, while the rest accuse Mas of putting his party’s interest first by deviating attention away from the dramatic economic situation.

The Catalan President states that, “if the Constitution is always interpreted from a centralist point of view”, “Catalonia will have to quietly and democratically reflect on its own future” as “no legal framework can be eternally used to annul the majority, democratic, and peaceful will of a people”. The Catalan President, Artur Mas, and the Spanish Prime Minister, Mariano Rajoy, met in Madrid 9 days after the 1.5 million strong demonstration for Catalonia’s independence. Rajoy categorically refused to negotiate a specific fiscal agreement between Catalonia and Spain because he said it does not fit into the Constitution. No one from the Spanish Government addressed the press after the meeting.

As part of the strategy to create state structures and to get a new fiscal agreement between Catalonia and Spain, the Catalan Government and the four Provincial Councils, all run by the Centre-Right Catalan Nationalist Coalition (CiU), have created the embryo of Catalonia’s Treasury. They will merge exiting structures, in terms of facilities, staff and resources, to create a single body to collect all taxes at local and Catalan level at no extra cost. The pillar for the future Catalan Treasury’s formal birth ceremony comes the day before the crucial meeting between Catalonia’s President, Artur Mas, and the Spanish Prime Minister, Mariano Rajoy. Rajoy has already said he will not accept a specific fiscal agreement for Catalonia.

In a very unusual movement, Juan Carlos I has issued a short but clear letter one week after the massive demonstration for Catalonia’s independence. The King emphasised the need to remain “united” and asked the people to retake the “values” of the “Democratic Transition”, such as “dialogue” and “the sacrifice of particular interests for the general good”. The Catalan Government does not feel “concerned” by the King’s letter. However, it states that Catalonia “offers solutions” and “does not chase pipe dreams”. Spanish nationalists celebrate the King’s words while PM Mariano Rajoy still remains silent. Catalan and Basque nationalists criticise the King for taking sides and not emphasising values such as “pluralism, diversity, tolerance, and respect for discrepancies”.

The President of the Catalan Government, Artur Mas, leader of the Centre-Right Catalan Nationalist Coalition (CiU), sent a warning message to the rest of Spain and in particular to the Spanish Government. “If there is not an agreement on the economic bases”, “Catalonia’s way to freedom is open”. The Spanish Prime Minister and leader of the People’s Party (PP), Mariano Rajoy, stated on Tuesday morning that Spain and Catalonia should have other priorities. The Spanish Government and most of the rest of Spain are against a new fiscal agreement between Catalonia and Spain, reducing the Catalan solidarity contribution, which represents some €17 billion per year. Furthermore, the Catalan PP has stated it will stop giving its parliamentary support to CiU.

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

The Spokesperson for the Catalan Government emphasised the money requested comes from Catalan taxpayers, since Catalonia pays €17 billion each year for services and investments in the rest of Spain. Nonetheless, the Catalan Executive stated it will meet the deficit targets and will follow the already approved austerity plan. The Spanish PM and leader of the People’s Party (PP) confirms it will “help Catalonia as we help the other Autonomous Communities”. However, the PP Spokesperson in Catalonia said the Catalan Government will have to accept whatever the conditions are. The Catalan Socialists want to know what the €5 billion will be spent on before supporting the decision. The Catalan Independence parties criticised the decision for having given away Catalonia’s autonomy.

Answering a letter from the Catalan President, the Spanish Prime Minister, Mariano Rajoy, stated he would study the proposal voted by the Catalan Parliament which aims to reduce the solidarity contribution from Catalonia to the rest of Spain and have all taxes raised by a Catalan-run agency. However, Rajoy had previously stated this issue was out of discussion, especially in the current economic context. A vast majority of the Catalan Parliament considers that it is precisely due to the financial stress provoked by the crisis that it is urgent to debate the excessive transfer of revenues from Catalonia to the rest of Spain. The Spanish PM also stated he has agreed to meet with the Catalan President to discuss this proposal, but he expects to talk about many other issues.

The Spanish Congress has ratified a new austerity package this Thursday with 180 votes from People’s Party (PP), 131 votes against made up by the other parties and one abstention from the Unión del Pueblo Navarro (UPN). The new measures include the suspension of the Christmas bonus for public sector officials, an increase in VAT, and a reduction in unemployment benefit after the sixth month. The Spanish finance minister, Cristóbal Montoro, defended the measures on the grounds that they are "necessary sacrifices" to enable economic recovery and that "giving up is not recommended or possible". Various groups have protested against the measures, with over 80 demonstrations across the country.

President Artur Mas says Catalonia needs to come out of the crisis stronger and citizens should “come together” in the wake of new austerity measures announced this Wednesday by Spanish president Mariano Rajoy. The Catalan government spokesman, Francesc Homs, celebrated Rajoy’s decision to cut Spanish public workers salaries, several months after the same decision was implemented in Catalonia. However, he criticised the VAT rise. The Catalan minister for the Economy, Andreu Mas-Colell, said Madrid’s plan is “in line” with EU instructions but urged Rajoy to offer “some kind of compensation” to the autonomous communities because their expenditure won’t benefit from the VAT rise.