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Catalan authorities announce benefits scheme after agreement with unions and business groups

New study finds that 75% of Catalan AI companies are small businesses together employing over 8,000 people

Event dedicated to entrepreneurship, small and medium sized businesses, and social economy

Half of the 14 Spanish projects selected by the European Commission from the State are from Catalonia. The 7 innovative SMEs, or small and medium enterprises, will receive a total of €9 million to launch their projects and receive business advice along the way. The Commission selected 50 SMEs across 14 different countries to invest €73 million in after phase 2 of the Horizon 2020 SME Instrument. In Spain, the 14 SMEs selected focus their projects primarily in the areas of information and communication, transport, energy efficiency, and food production. Since the start of the instrument in 2014, this has been Spain’s most successful year, with the 14 selected projects receiving €15.4 million — more than any other country in the programme. 

The main Catalan trade association for small and medium-sized companies, Pimec, has repeatedly shown its support for Catalonia’s right to decide its political future. However, in an interview with CNA this Thursday, Pimec’s president Josep González called for the Government to keep the pro-independence process “within the law”. “Let’s do things, but let’s do them right and with common sense”, he stated. González also urged the new executive to approve a new budget as soon as possible and fight against unemployment. The association head went on to celebrate the election of the new Catalan Minister for Business and Knowledge, Jordi Baiget, and defined him as “prudent, open-minded and educated”.

Companies, entities and citizens have European funding opportunities at their disposal to make their projects grow. To promote these EU resources and facilitate access to them, the Catalan government has launched a website which includes the available European funding opportunities and the calls for entry in progress. “We must break the myth of a lack of access” to the EU institutions, stated the Catalan Permanent Representative to the EU, Amadeu Altafaj, and added that “they are more open and more accessible than what people may think”. The Catalan Foreign Affairs Secretary, Roger Albinyana, encouraged everybody to “make the most of the European funding opportunities” and called Catalans to be “even more ambitious”.

Catalonia received more than 190 million euros from the European Commission’s Horizon 2020 programme, the most important initiative in the EU in terms of innovation and R&D. In the past year and a half, Catalan innovative companies and research projects received 2.6% of the total that the EC has given out so far, representing a higher figure  proportional to Catalonia’s population weight within Europe (1.5%).“Catalonia’s R&D system is one of the most productive and successful in Europe”stated general director of Recerca, Josep Maria Martorell, head of the entity which executes and promotes research and innovation initiatives in Catalonia. “During the first year of Horizon 2020, Catalonia has multiplied by 3.5 what was raised in the first year of the previous European funding programme, the FP7”he added. Most of the 142 companies which received Horizon 2020 funds were SMEs and this allowed them carry out feasibility analysis and be able to fund their R&D activities, so that their projects could be launched. The Horizon 2020 programme, launched last year, has an 80 billion euros budget until 2020.

A major step forward in Catalonia's public research on technology has been made this month, with the official establishing of Eurecat on 1 May. The new integrated hub is a result of the merger of 5 advanced Catalan technology centres in the first phase. Last Wednesday, it incorporated a further 13 companies onto its Board. Eurecat is aimed at boosting technology research and its business applicability, particularly among private SMEs, which represent most of Catalonia's economy. Conceived as an engine for key technologies, it is a tool for implementing the Strategy for the Smart Specialisation of Catalonia (RIS3CAT). The latter was drafted by the Catalan Government following the EU Commission's decision to make 'smart specialisation' a prerequisite for attracting EU funds during the period 2014-2020. By the end of 2020, the centre is expected to have attracted funding from the EC's Horizon 2020 framework and the RIS3 to the tune of €200m.

The European Commission has warned Spain that 6 Autonomous Communities, including Catalonia, should cancel their tax on large-sized shopping centres because it may represent indirect State aid benefiting smaller shops and therefore damaging free competition. The Catalan Minister for Business and Employment, Felip Puig, announced legal actions to defend this tax, which was validated by the Constitutional Court. Catalonia’s shopping model has a great presence of small and local shops, mostly run by families with a small number of employees. In order to protect this model and make it compatible with new shopping malls and large-sized international shops, in 2000 the Catalan Parliament created a tax on shops larger than 2,500 square metres. Currently, it is set at €17 per year per square metre. The revenue collected is devoted to actions promoting local retail.

Pimec and Foment, Catalonia’s largest employers’ associations, have expressed outrage at the Spanish Government’s budget proposal for 2015 and its planned investment in Catalonia. Both Foment, which groups the largest employers, and Pimec, who represents small and medium-sized enterprises, have criticised that the Spanish Government has allocated to Catalonia only 9.5% of Spain’s total investment, despite it contributing 19% of the country's GDP and having 16% of its population. Spokespersons for both organisations have said the shockingly low budget is at odds with Catalonia’s high productivity and represents "a missed opportunity", both for economic growth and political dialogue, considering the independence debate. According to Ramon Adell, from Foment, Catalonia "as the engine of recovery, deserves a greater investment in infrastructure."

28 employers’ associations, chambers of commerce and business organisations have signed a manifesto that explicitly backs Catalonia's right to self-determination. They presented the initiative on Thursday, in a lighthouse on the Costa Brava. The document is based on a previous agreement reached among employers and business associations just from Girona Province (north-east), but now it has been shared with organisations from throughout Catalonia. Some media, mostly edited in Madrid and abroad, are portraying the business community as against the self-determination process, but there are many employers that are backing it, even among the larger companies. A few weeks ago, the President and co-owner of the pharmaceutical Grífols – which is one of the world leaders for blood-derivate products – backed the Catalan President and his efforts to organise a self-determination vote.

On Wednesday evening the main Catalan small- and medium-sized enterprises association, Pimec, organised a protest conference in which they accused the Spanish and Catalan Governments of politically and financially "discriminating" against them. With the slogan #diguemprou (#wesayenough) 1,400 owners of SMEs and self-employed workers protested against both Governments for not taking SMEs into account and only working for the interests of large corporations. The protest was explicitly backed by 220 guilds and associations, as well as by 9 professional associations and that of self-employed workers. The event issued a manifesto compiling a list of grievances, split into 7 different areas: entrepreneurship; loans and funding; taxation; labour market; energy; training and employment; and internationalisation.

The Catalan Government approves a decree to transform the Catalan Institute of Finance (ICF) into a publicly-owned bank to support business and particularly SMEs. With this change, the Catalan Executive’saim is “to strengthen the ICF’s role as a tool to support business and the productive economy”, as the Government’s Spokesperson, Francesc Homs, told the press on Tuesday. The measure is part of the Parliamentary Stability Agreement signed between the Left-Wing Catalan Independence Party (ERC) and the governing Centre-Right Catalan Nationalism Coalition (CiU).