recentralisation

The Autonomous Community governments, such as the Catalan Executive, cannot meet the deficit objectives imposed by the Spanish Government because of the current inter-territorial fiscal scheme, according to a report from the Spanish banking giant BBVA. The bank has published two studies on two consecutive days that shed some light on this scheme and its consequences. In the first report, the BBVA states that spending per capita on basic Welfare State services, such as healthcare and education, varies by 60% among the Autonomous Communities. A second report highlights that the Spanish Executive reduced the funds for the Autonomous Community governments in 2014, despite the economic situation and the intake of public revenue improving. On top of this, it refuses to review a fiscal scheme that legally expired 16 months ago and that was designed before the financial crisis.

The fee that was temporarily charged on each drug prescription in Catalonia between June 2012 and January 2013 has started to be refunded by the Catalan Government, after the Constitutional Court definitively banned it in May 2014. The decision came after an appeal from the Spanish Government, despite the People Party (PP) initially having supported the measure in spring 2012. However, after the Catalan Government started to back independence from Spain in autumn 2012, the PP decided to oppose the drug prescription fee. The measure had been adopted to reduce pharmaceutical spending, with the final goal being to reduce public deficit. In the short period the fee was in place, €45.7 million was directly earned but much more was saved, since drug spending dropped by around 23%. According to the Catalan Government's calculations, so far 100,000 euros has already been returned to approximately 5,000 people and about €6 million will be returned in total. So far, 300,000 people have filed the request, with an average of €20 per person.

The governments of Catalonia, the Basque Country, Andalusia, the Canary Islands and Asturias, which are the only Autonomous Communities that are not run by the governing People's Party (PP), have protested once again against yet another recentralising measure of the Spanish Executive that violates their exclusive powers on Education. The representatives of these 5 Autonomous Communities, which together represent almost 50% of Spain's population, left a meeting organised by the Spanish Minister for Education, José Ignacio Wert, held to present a new centralist and imposed measure in this field: from now on, the final exams of the obligatory education cycle and the baccalaureate (A-levels) will be drafted by the Spanish Government, which will make sure they are "homogenous" for the whole of Spain, as Wert said. Far from being anecdotal, the measure means subjects such as History of Catalonia, Catalan Geography and Catalan Language and Literature will not be included in the exams or will be treated as second-class subjects. 

The highest-ranked officer of the Catalan Government's Police Force Mossos d'Esquadra, Chief Josep Lluís Trapero, has accused the Spanish Police Force of not sharing important information that affects Catalonia's security. Despite the Mossos d'Esquadra force being in charge of the main police tasks for Catalonia, it does not have access to relevant intelligence that the Spanish Police receives from international organisations and foreign police corps. Trapero emphasised that the Catalan Police has international level powers since 2006 and therefore is legally entitled to receive such information. However, the Spanish Police always keeps it for itself, which "makes our work more difficult", complained Trapero, and thus diminishes Catalonia's overall security.

As was expected, the Constitutional Court has accepted the Spanish Government's appeal against the Catalan Law on External Action and Relations with the EU, which was approved last November and was already foreseen in the 2006 Catalan Statute of Autonomy. The Court's acceptance of a Spanish Government appeal automatically represents a temporary suspension of the legal measure for an initial 5-month period. The temporary suspension does not mean that the law will ultimately be suspended, but that there are enough reasons to study whether the Catalan law fits within the Constitution or not. According to the Spanish PM Mariano Rajoy, the law goes beyond the Catalan Government's attributions and invades the Spanish Executive's exclusive powers regarding international relations and the direction of Spain's external policy.

The President of the Catalan Government, Artur Mas, is on a visit to the United States to talk with think tanks, investors and media. Mas held a conference at Columbia University on Wednesday evening in which he stressed the democratic principle as the driving force of the independence movement. He praised the American Constitution's "We, the people" to emphasise that "we will vote in September", in elections transformed into a 'de facto' vote on independence. Besides this, Mas also held an interview with 'Bloomberg', saying he hoped that "the biggest" European Union countries will convince Spanish Prime Minister to negotiate a split if Catalans voted for independence. He has also penned an article in the 'Irish Times', stressing that no "decision taken by the Spanish political sphere will break the will of the Catalan people to freely and democratically decide their political future".

The Catalan Government registered a 2.58% deficit in 2014, according to the Spanish Finance Minister, Cristóbal Montoro. The Catalan Finance Minister, Andreu Mas-Colell, already unveiled this figure a few days ago, but explained that it was including the public bailout of a highway charged on 31 December 2014, as otherwise the figure would be 2.13%. In any case, Catalonia's deficit is higher than the 1% target unilaterally imposed by the Spanish Government on the Autonomous Communities. The Catalan Government protested months ago, saying that it was not a realistic target, that it was unfair since it was not in line with spending responsibilities in the management of basic public services, and that it was went against the Budget Stability Law. The Catalan Government took it to the Constitutional Court but the verdict has not been issued yet.

The Catalan Finance Minister, Andreu Mas-Colell, has announced a €4.23 billion deficit for 2014, representing a 2.13% deficit, significantly higher than the 1% target imposed by the Spanish Government. Mas-Colell stressed that spending went as planned, but revenue was far from the expected result, obtaining €1.91 billion less than expected, since the Spanish Government reduced the Catalan Executive's funds by €600 million. In addition, it has not shared with the Autonomous Communities all the money from the revenue increase of 2014 which came due to the economic recovery. "We have not seen a single euro of this additional revenue", complained Mas-Colell, who estimated that €900 million of this money should have gone to Catalonia. In addition, he has always argued that a 1% deficit for 2014 was not realistic and that it was "illegal", after filing a complaint to the Supreme Court.

The Spanish Government approved on Friday to take to the Constitutional Court Catalonia's Law of External Action and Relations with the EU and the opening of delegations in Vienna and Rome. The Spanish Executive will appeal against the law despite it being foreseen by the Catalan Statute of Autonomy – approved by the Spanish Parliament and the Catalan people through a binding referendum in 2006. This is Catalonia's main law after the Spanish Constitution and recognises the Catalan Government's right to carry out its own external action abroad. However, in the current debate about Catalonia's independence, the Spanish Government is reiterating its 'no-to-everything' attitude and recentralisation strategy and has appealed against the law approved by the Catalan Parliament on 26 November last.

Spain’s Constitutional Court has ruled against the Catalan Parliament’s Law on Consultation Votes, approved in September, and the President of the Catalan Government’s Decree calling for a consultation vote on independence on 9 November last. The Constitutional Court had already temporarily suspended both legal measures in October, but it still was yet to issue its definitive verdict. After the temporary suspension, the Catalan Government promoted an alternative and symbolic vote on independence run by 40,000 volunteers, also on 9 November, in which 2.35 million people participated despite the Spanish authorities’ full opposition and even threats. The Catalan President, Artur Mas, stated that the Constitutional Court’s final decision “leaves 27 September [early elections] as the only way to consult the Catalan people” about their collective future. Meanwhile, the Spanish PM, Mariano Rajoy, highlighted that the Court’s decision “has been adopted unanimously” and that “governments have to honour laws”.

In the annual Debate on the State of the Union in the Spanish Parliament, Prime Minister Mariano Rajoy repeated that he will “never” accept putting Spain’s unity in question. He said that the next Catalan Parliament elections, scheduled for 27 September, are not a ‘de facto’ referendum on independence, as pro-independence parties are claiming. However, Rajoy said he is willing to talk but only if “the law is always respected”. The Spokesperson of the centre-right pro-Catalan State coalition CiU, Josep Antoni Duran i Lleida, emphasised that “not making any proposal” to address Catalonia’s claims is “political negligence”. Furthermore, he regretted that the Spanish Government is not respecting the law when it is recentralising powers and not respecting Catalonia’s self-rule. The Spokesperson for the left-wing Catalan independence party ERC, Alfred Bosch, told Rajoy that “the sooner he acknowledges” that there is an independence referendum in September, “the sooner we will find solutions”.

On Monday, the National Executive Commission of the centre-right pro-Catalan State Coalition CiU, which is its leading committee, has explicitly referred to last week's crisis. Last Tuesday, the CiU MPs in the Spanish Parliament voted differently, showing a split within the coalition, coinciding with the two integrated parties: the Liberal and pro-independence force CDC (the largest one) on one side and the Christian-Democrat and pro-Spanish unity party UDC on the other. The CiU's Spokesperson in the Spanish Parliament and leader of the UDC, Josep Antoni Duran i Lleida, believed the CDC MPs had not obeyed his voting instructions to support the Penal Code's reform, while the Liberal MPs were insisting that the CiU group had previously agreed on abstaining. Now, the CiU leadership considers the crisis to be over and highlighted their "full support" for Duran i Lleida.

The conservative Spanish nationalist People’s Party (PP), which runs the Spanish Government, has appealed against the Catalan Executive’s 2015 budget bill, which will delay its definitive approval and implementation by up to one month. The new budget was supposed to be approved this week by the Catalan Parliament, after months of negotiations between the governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC. The new bill will increase social spending and also increase funds for Catalonia’s own tax administration and for the launch of a Catalan Social Security agency. The Catalan Government accused the PP of “parliamentary filibusterism” and warned them that the appeal “will not stop the [self-determination] process” nor the creation of “state structures”. However, it will damage families in need, as it will delay the implementation of new social programmes.

The Catalan Parliament delivered a petition to the Constitutional Court in order to defend the Catalan law on opening hours for shops, which is more restrictive than the Spanish one. Catalonia is trying to preserve its small urban shops model, where most of the shops are run by families. The Spanish Government passed a reform in 2012 forcing Catalonia to allow longer opening hours. In 2013, the Catalan Executive promoted a new bill to invalidate the Spanish one. The new law was approved with 80% support in the Catalan Parliament in January 2014, but the Spanish Government appealed against it a few months later, and the Constitutional Court suspended the Catalan text in late 2014. 

The governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC have reached an agreement to approve the Catalan Government’s budget for the current year. After the President of the Catalan Government and CiU leader, Artur Mas, and the ERC’s President, Oriol Junqueras, reached an agreement on holding early elections on 27 September as a plebiscite on Catalonia’s independence, both parties reopened the budget talks. After 10 days of negotiations, they have reached a definitive agreement, which includes a €100 million fund that will bring more resources for social programmes. They have also agreed to stop paying some allowances to senior officials. Furthermore, they will add €10 million to the development of Catalonia’s own tax administration and they will also create the Agency of Social Protection, which is to manage Catalonia’s Social Security system.