self-determination

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.

A Professor at the prestigious Paris Institute of Political Studies (Science Po), Jean-Bernard Auby, has advocated for a temporary solution to keep Catalonia within the European Union if it reaches independence from Spain. This agreement should guarantee that Catalonia will not be excluded from the EU even if it does not immediately become a full-member. During a conference in Sciences Po Toulouse organised alongside the Public Diplomacy Council of Catalonia (Diplocat), Auby insisted that “Catalonia and the Catalans are part of the EU” and for this reason, if they become independent “one shouldn’t, in a mechanical way, impose on them to go through the procedures we impose on those who are complete outsiders”. The conference ‘The right to self-determination of Catalonia. Legality and democratic legitimacy’ is part of a series of debates on the right to self-determination, organised by the Diplocat and scheduled in prestigious universities throughout Europe.

The General Assembly of the International Federation of Liberal Youth (IFLRY) approved a motion recognising the self-determination process in Catalonia. Krakow has welcomed this meeting attended by the youth sections of Liberal parties from all over the world. A hundred Liberal parties backed the motion presented by the JNC, the youth section of Catalan Liberal party ‘Convergència Democràctica de Catalunya’ (CDC). CDC is the main force within the two-party Catalan Nationalist Coalition (CiU) that is running the Catalan Government; the other force is the Christian Democrats (UCD). CiU is in favour of holding a self-determination referendum in Catalonia and was involved in the political agreement reached last December to present a specific question and date.

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.

Andreu Mas-Colell, Catalan Finance Minister, accused the Spanish Government of aiming “to undo” the system of Autonomous Communities. He also expressed his fear that the so-called ‘coffee for all’ system [the generalised devolution of the early 1980s that shaped the 17 Autonomous Communities] will become a ‘decaffeinated coffee’ system, implemented ‘in depth’. With this play on words, Mas-Colell was referring to a deep recentralisation and homogenisation process. Furthermore, the former professor of Economics at Harvard and Berkley, denounced “the budget treatment” that the Spanish Government gives to Catalonia as “totally unfair”. In this vein, he proposed that an international and independent body should calculate the fiscal balances between Catalonia and the Spanish State.

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 Spanish Prime Minister, Mariano Rajoy, stated in a TV interview on Monday evening that he has “a plan” to prevent Catalonia’s self-determination and “guaranteed” that “the independence of any Spanish territory will not happen while [he is] in office”. Rajoy emphasised that his plan’s guidelines are, firstly, “implementing the law”. The Spanish PM said he is “ready for any scenario that might happen”, but refused to disclose any measure. Secondly, he would be “working on increasing the bonds that have always united the whole Catalan people and the people living in Catalonia that are not born in Catalonia with the whole Spanish people”. Thirdly, “working to solve the problems of the Spanish and Catalan economies”, as well as the funding of the Catalan Government. However, Rajoy stated he “will not call” the Catalan President, Artur Mas, despite the offers to talk.

The Spanish Prime Minister, Mariano Rajoy also said that an independent Scotland would be “out of the European Union, the United Nations and all the applicable international treaties for being part of the UK”. Regarding the Catalan Parliament’s bill to formally request the transfer of the powers to organise referendums to the Catalan Executive, based on Article 150.2 of the Constitution, Rajoy has categorically rejected the idea. He stated that his stance on Catalonia’s self-determination “is clear” and “does not include nuances”. In addition, Rajoy said that he is “always open to dialogue” but that “it is impossible to talk” with Catalonia because of “a continuous process of unilateral decisions”. Furthermore, the Deputy Prime Minister insisted that a self-determination vote “cannot take place” and “goes against the Constitution”.

The Spanish Education Minister, José Ignacio Wert, emphasised the need to have a common and single history of Spain taught in all the Autonomous Communities. With the Education Reform he is currently proposing, the history curriculum will be imposed by Madrid and the Autonomous Communities will only be able to add a small portion referring to their own history. However, such additional contentswill be excluded from the final exams and therefore pupils will tend to ignorethem. With this initiative, Wert aims to impose a single interpretation of the historic facts affecting Spain’s history and nation-building. Lately, the Spanish Government, run by the People’s Party (PP), has repeatedly stated that Spain is “the oldest nation in Europe” and is now focusing on the education system to spread this idea.

3 MPs of the Catalan Socialist Party (PSC) have voted ‘yes’ to the bill requesting the transfer of the powers to organise referendums to the Catalan Government, and have thereby gone against the party’s leadership. The PSC ran in the last elections proposing a legal self-determination vote this term. But the increasing tensions with the Spanish Socialist Party (PSOE) – to which the PSC is federated – made the party’s leadership run away from this promise. However, an important minority within the PSC is strongly against this move and continues defending Catalonia’s right to self-determination. Before this Thursday’s crucial vote at the Catalan Parliament, 6 of the PSC MPs (30% of the total) had publicly expressed their serious doubts about opposing the bill. Finally, 1 MP decided to resign from Parliament one day before the vote and 3 other MPs did not follow the party’s instructions and supported the bill.

Rating agency Moody’s warns that Catalan independence from Spain might have “a major adverse impact on Spain’s economy” but also that “Catalonia itself could also suffer” if the break–up is not friendly. In a forecast about the Spanish economy published this week, the New York-based company analyses potential risks that might damage the expected economic recovery. Moody’s praise the high level of exports, based on a higher competitiveness reached by lowering salaries. However, the report, signed by Zach Witton, highlights that “debt reduction by households and businesses, elevated unemployment, the housing market correction, and tight credit will drag on growth”.