recentralisation

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.

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.

The governing People’s Party (PP) has once again rejected the creation of a subcommittee within the Spanish Parliament to start debating a Constitutional Reform, in order to handle the deep political crisis and Catalonia-Spain relationship. The Spanish Government and the PP – which holds an absolute majority at the Chamber – have been refusing to initiate a Constitutional Reform on manifold occasions during the last few months. Furthermore, last weekend, Prime Minister Rajoy strongly objected to making “any concession” regarding Catalonia’s demands and, instead, the PP is working on an involution of the political model that would recentralise many powers and increase the Spanish Government’s presence in Catalonia. This Thursday, the Spanish Socialist Party (PSOE) filed the motion to create a parliamentary subcommittee to start working on the Constitutional Reform because the best way to save this text is “by updating it”. The PP replied “this debate is neither timely nor necessary”.

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.

On the same day, both the Spanish Justice Minister, Rafael Català, and the 'number 2' of the governing People's Party (PP), María Dolores de Cospedal, compared Catalonia's self-determination process with the Fascist and Nazi movements of the 1930s. Such a comparison trivialises Nazism and is highly offensive for millions of Catalan citizens. The Catalan pro-independence movement mainly demands to hold a democratic vote on independence, as in Scotland, and it has always acted in a peaceful and festive way. The expert in European populism, Meindert Fennema, stated he considered that to compare Catalan self-determination with Nazism to be "ridiculous" and "nonsensical". On top of this, he highlighted that Catalonia's society is highly inclusive, since it has welcomed and integrated millions of immigrants in the last 100 years. In fact, 70% of the Catalan population has origins from outside Catalonia and 80% of the Catalan population want to hold a self-determination vote. 

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.

Once again the Spanish Government and the People’s Party (PP) have closed the door to making any concession to Catalonia with the objective of reducing support for independence. On Saturday, the Spanish Prime Minister, Mariano Rajoy, travelled to Catalonia for the first time since last May’s European Elections to participate in a closed-door PP event. Rajoy insisted on affirming that November 9’s symbolic self-determination vote had been “a failure” of the pro-independence forces. He accused the Catalan President of “heading nowhere” and of ignoring “2 out of 3 Catalans”, a figure arrived at by adding all the people who did not vote on November 9. Once again, Rajoy refused any negotiation or to make any concession. On Monday, the PP’s leader in Catalonia, Alícia Sánchez-Camacho, stated that “Catalonia’s solution does not include third ways [built] with concessions”. Furthermore, the PP asked for a greater presence of the Spanish Government in Catalonia, which means recentralization.

The People’s Party (PP), which runs the Spanish Government but is only the 4^th largest group at the Catalan Parliament, has organized two days of debate in Barcelona on local governments and good governance. The main leaders of the party are coming to Catalonia, including the Spanish Prime Minister, Mariano Rajoy, who will close the debate on Saturday. Rajoy’s speech has been greatly publicised as he will visit Catalonia for the first time after November 9’s symbolic vote on independence. Rajoy himself has raised expectations, as he said “he will talk to Catalans” in this restrictive party meeting. In fact, on Friday, the PP insisted on representing “all the Catalans who did no vote on November 9”, therefore excluding the citizens who voted. The PP’s ‘number 2’, Maria Dolores de Cospedal, accused the President of the Catalan Government of being a “ pre-made myth” and insisted that her party “loves Catalonia”, and will continue to “help Catalans” despite “the independence challenge”.

The President of the Catalan Government, Artur Mas, confirmed that Spain and Catalonia are already now in a situation of “open conflict”, after the criminal prosecution launched against him and two other members of his Cabinet. However, Mas asked the Spanish Government to end its “angry” attitude and start negotiating, proposing ways out of the current situation. The Catalan President added that the international community will ask the Spanish Government to sit and talk if the current open conflict finally generates “concerns” at an international level. Mas was addressing an economic forum with the main representatives of Catalonia’s business community. The Spanish Minister for the Economy, Luís de Guindos, was also present and they were in friendly conversation for a little while. De Guindos emphasized that the Spanish Government has issued “bailouts for Catalonia in difficult moments”.

The European Commission has warned Spain about its budget for 2015 and the possibility of meeting the global deficit target of 4.2%. It has asked the Spanish Government to adopt the necessary measures to guarantee that the 2015 budget will respect the Stability and Growth Pact. The Spanish Minister for the Economy answered back and affirmed that no additional measures will be adopted since the planned budget and the forecast economic growth “are enough”. The Commission also demanded that the Spanish Government put “more pressure” on the Autonomous Communities that will not meet their deficit target for 2014, which is likely the case of Catalonia. Brussels directly asked for the implementation of “corrective measures” in these cases. However, the Commission did not make any comment on whether such deficit targets unilaterally imposed by Madrid are fair or realistic. In fact, the Catalan Finance Minister accused the Spanish Government of putting the blame on the Autonomous Communities and “discrediting” them, in order to recentralise powers. 

The President of the Catalan Government, Artur Mas, proposed the next steps in Catalonia’s self-determination process: early elections to the Catalan Parliament and, if a single pro-independence list get an absolute majority, negotiations to reach full independence in 18 months. Such a list should be formed by independent personalities and recognised professionals, who should commit to only run once, with traditional parties adopting a secondary role. After negotiating independence and building the new state’s basic structures, a referendum to ratify the new state’s genesis and constituent elections would be called, in which traditional parties would again be running separately. Mas said he was ready to be the front-runner or to end such a list, the latter case ruling out the possibility of his being re-elected. However, he will only call early elections if parties and civil society organisations transform them into such a ‘de facto’ referendum on independence. After years of peaceful citizen mobilisations, now “it is time for the definitive vote” and the “only” way of doing it is through early elections, he said.

The Spanish Prime Minister, Mariano Rajoy, confirmed before the Senate that he had “not given any instruction to the Public Prosecution Office” to press charges against the President of the Catalan Government, Artur Mas, for having authorised and organised November 9’s symbolic vote on independence. Rajoy was answering a question from Mas’ party, the centre-right pro-Catalan State Coalition CiU, which had accused the Spanish PM of hiding behind the courts in order to avoid giving Catalan citizens a political answer regarding their self-determination demands. Besides, the CiU Senators showed banners in which they pleaded guilty for November 9’s vote as well. In the morning, the Catalan Government announced it will ask to testify before the court and to do it “en bloc”, if the criminal complaint from the Spanish Public Prosecution Office is accepted.

After months of speculation, Josep Antoni Duran i Lleida, the leader of the Christian-Democrat party UDC – which is the smallest force within the governing  two-party centre-right pro-Catalan State coalition CiU – presented his new political initiative to build an alternative option between the current territorial model and independence from Spain. Duran has been advocating for the creation of a confederated Catalan State within a more decentralised Spain, which would recognise Catalonia's nationhood, respect Catalan language and launch a fairer inter-territorial fiscal scheme for Catalan interests. With the platform 'Construïm' ('We build', in English), Duran is now trying to reach new potential voters "who feel orphaned from any political party"; voters worried about "social issues" and the economy, "beyond the debate about independence". With early elections on the horizon, the initiative is likely to represent the split of the CiU, which has been the main actor of Catalan politics for the last 35 years.

On Friday, Spain’s Public Prosecution Office filed the criminal complaint against the President of the Catalan Government, Artur Mas; the Vice President, Joana Ortega; and the Education Minister, Irene Rigau. They are being prosecuted for the symbolic vote on independence that took place on November 9. Such a complaint has come with great controversy, as the Spanish Government and the People’s Party (PP) have been accused of putting pressure on the Director of the Public Prosecution Office, Eduardo Torres-Dulce, to press charges against the Catalan President. Despite the main prosecutors in Catalonia having stated there was not enough legal basis for such a complaint, Torres-Dulce announced he would press charges anyway. In response, the 6 parties that agreed to organise the original consultation vote on independence, which represent almost two thirds of the Catalan Parliament, sent a letter to Torres-Dulce and plead guilty for the organisation of November 9’s symbolic vote.