spain

In an interview with the Catalan News Agency, the European Commissioner for Regional Policy, the Austrian Johannes Hahn, nuanced previous statements made by other Commissioners and opened the door to debating Catalonia’s EU membership “in a more relaxed way”. Hahn “rejected” the idea that the Commission “is ignoring Catalonia’s independence movement”; “we are watching it carefully”, he said. On the question of automatic expulsion from the EU in the event of becoming independent, the Commissioner emphasised that “of course there is no provision in the Treaty and that’s why legal experts have the opinion that then Catalonia should ask for membership”. However he immediately added that “we should resolve this issue in a more relaxed way”, since “if there is independence, it would not happen from one day to the next”.

Nils Schmid, Vice President of Baden-Württemberg and regional Minister for Finance and the Economy, said in an exclusive interview with the CNA that Catalans are the ones who have to decide whether they want to remain within Spain or to become independent. This process should “of course […] be based on a referendum”. The Leader of the Social-Democrats (SPD) in this state also added that his party is proposing to include the possibility of holding referendums at national level in Germany, which is currently not envisaged by the German Constitution. However, he “cannot imagine” an independence referendum for Baden-Württemberg. On other issues, Schmid pointed out that “fiscal consolidation is not enough” and has to come with “structural reforms” and policies to stimulate growth. He also welcomed Catalans who are going to Germany to find job opportunities.

On Monday the Spanish Government presented its budget proposal for 2014. As every single year, it will only invest in Catalonia a much inferior budget share than Catalonia’s weight within Spain in GDP or population terms. In 2014, the Spanish Government is planning to spend just 9.6% of its total regional investment in Catalonia, far short of the Catalan GDP (18.9% of Spain’s total) and population (15.7%). In addition, compared to the budget forecast for 2013, the €944.42 million planned for 2014 represents a 25% annual drop, while investment throughout Spain will only be reduced by 7.2%.

The President of the Catalan Government and leader of the Centre-Right Catalan Nationalist Coalition (CiU), Artur Mas, and the Left-Wing Catalan Independence Party (ERC) agreed on speeding up the process of building “state structures” and drafting the “most social budget” in Catalonia’s recent history. In addition, Mas criticised the ‘third way’ between independence from Spain and the current situation proposed by the Catalan Socialist Party (PSC) and CiU’s ‘number 2’, saying that Catalans “have been trying” this way “for the last 100 years” and “it has never worked”. Spanish nationalist People’s Party (PP) and Ciutadans (C’s) called on Mas to stop the self-determination process. However, the main Catalan parties, from left to right and representing 77% of the parliamentary seats, presented a common text supporting Catalonia’s right to self-determination through a legal vote.

Josep Antoni Duran i Lleida, the leader of Unió Democràtica de Catalunya (UDC) – which is the Christian-Democrat party and smaller force within the two-party Centre-Right Catalan Nationalist Coalition (CiU) – insisted that he does not want independence from Spain, but a Catalan state within a Spanish Confederation. Duran – who is also CiU’s ‘number 2’ – has been proposing this formula for years. However, in the last few months and particularly on the occasion of the 400-kilometre human chain, Duran has emphasised his stance, while the larger party within CiU – the Liberal Convergència Democràtica de Catalunya (CDC) – was increasingly supporting independence. Nevertheless, Duran insisted that Catalonia must vote in a self-determination referendum, where he will defend a third way “between independence and submission”.

The Spanish Constitutional Court has decided not to exclude its President, Francisco Pérez de los Cobos, from cases directly affecting Catalonia’s self-government institutions despite his anti-Catalan statements and being a member of the People’s Party (PP) until 2011. Among many statements, in 2005 he made one of the most controversial ones when he said that “Catalans are educated to hate Spanish culture”. The Catalan Government asked him at least to apologise publicly for those words, made at a public event, and to take them back. Furthermore, all the Catalan parties except the Spanish nationalist ones rejected the Court’s decision since the institution loses even more credibility. The anti-Catalan nationalist party Ciutadans (C’s) warns that keeping Pérez de los Cobos in position will allow Catalan independence supporters to take legitimacy away from the Court.

The civil society platform that organised the colossal ‘Catalan Way towards independence’ demanded a self-determination referendum to be held in 2014 and not at a later stage. The festive demonstration was a great success, gathering more participants than last year’s 1.5 million strong rally, which was also organised on Catalonia’s National Day. Most of the Catalan Government Ministers took part in the human chain, but neither the President of Catalonia, Artur Mas, nor the Chairperson of the Catalan Parliament took part. However, they did both gave their personal support to the peaceful demonstration. Many folkloric performances and festive celebrations were carried out throughout the non-interrupted human chain. 500,000 citizens held hands in the city of Barcelona alone, and a total of 1.6 million Catalans participated in the rally, according to the Catalan Police.

This coming 11^th of September – which is Catalonia’s National Day – pro-independence supporters have organised a gigantic human chain called the ‘Catalan Way Towards Independence’ that will cross Catalonia from North to South stretching 400 km and passing through some of the main cities, such as Barcelona, Girona and Tarragona. After having organised the 1.5 million-strong demonstration of 2012, the civil society platform Catalan National Assembly is preparing a new massive demonstration that calls for independence from Spain. This year’s peculiar demonstration is inspired by the ‘Baltic Way’ of 1989, which gathered 2 million people forming a 670 km-long human chain crossing Estonia, Latvia and Lithuania. The ‘Baltic Way’ was organised exactly 24 years ago and issued a manifesto that read “a common European home can only by set up if all European nations are granted a free right to self-determination”.

The Catalan bank was nationalised in 2012 and is going through an important restructuring process before being privatised again. Currently, the financial entity is owned by the FROB (Fund for Orderly Bank Restructuring), which is run by the Bank of Spain and the Spanish Government. The FROB has been delaying the auction to sell CatalunyaBanc and is now proposing to layoff 2,453 workers of the bank and its subsidiaries, according to trade unions. This would represent firing some 34% of its staff. The company is proposing a compensation of 20 days worth of salary per year worked for those it plans to layoff, following the labour market reform, with a maximum of the equivalent to 12 months salary being given. CatalunyaBanc ended the first half of 2013 with a net profit of €183 million, after having transferred part of its real estate toxic assets to the so-called “bad bank” SAREB.

The solvency ratio stood at 10.21% of the bank’s total resources, with 9.77% of core capital. Barcelona-based CatalunyaCaixa closed the first half of 2013 with a net profit of €183 million, which have met targets to recapitalise the bank. The interest margin reached €264 million, which represents a reduction of 5.9% as a result of a credit transfer to the publicly-owned banking management company Sareb. In spite of this, the reduction is less than the average decline seen in the sector as a whole and it has seen a remarkable growth during the first half of 2012 of 14.8%.

“2013 is done. We now need to think about 2014”, summed up the Catalan Finance Minister, Andreu Mas-Colell, after finding out about the 1.58% deficit target imposed yesterday by the Spanish Executive. Mas-Colell considers this target to be “intolerable” since it “asphyxiates” Catalonia. The Catalan Executive was waiting to find out this figure to approve its definitive budget for the current year, but considering the low deficit target it is now considering extending the 2012 budget for the whole of 2013 – as it has been doing so up until now. The Catalan Government will make the final decision on the issue next Tuesday. Furthermore, Mas-Colell warned that a €1.7 billion budget adjustment will be needed in 2014 that will be required to increase one-off revenue since the Catalan Government “cannot spend less than in 2013”.

The Catalan Finance Minister, Andreu Mas-Colell, accuses the Spanish Government of “asphyxiating” the Autonomous Communities. The 1.58% deficit target imposed to the Catalan Government represents €2.6 billion of further budget adjustment compared to last year’s budget, which ended with a 1.96% deficit. Mas-Colell denounced that the Spanish Executive is “keeping for itself the greatest share of the deficit pie”, while it is only responsible for 50% of Spain’s public spending. The Spanish Government is setting itself a deficit target of 5.2% for 2013 and most of the flexibility allowed by the European Union, which authorised a 6.5% deficit for Spain’s total public sector. Meanwhile, the Autonomous Communities have a deficit target 4 times stricter, although they manage 36% of Spain’s total public spending as well as basic services such as healthcare and education.

The Constitutional Court rejected the allegations presented by the Catalan Parliament against the decision to temporarily suspend the Declaration of Sovereignty. This text was approved in January by two thirds of the Catalan Parliament and it stated that the people of Catalonia are sovereign to decide on their collective future. The Spanish Government took the Declaration to the Constitutional Court, which accepted the appeal and temporarily suspended the text until it reached a final decision – which might take years. The Catalan President stated he was counting on the Court’s decision to maintain the suspension and he emphasised that Catalonia’s self-determination process keeps moving forward. The majority of Catalan parties accused the Constitutional Court of being politicised while Spanish nationalist parties celebrated the decision.

On Thursday, the Parliament of Catalonia set up the parliamentary committee for the right to self-determination with the support of all parties except the Spanish nationalists People’s Party – which runs the Spanish Government – and the anti-Catalan nationalism Ciutadans. 80% of MPs support the creation of this commission, which will study legal ways to organise a self-determination vote in Catalonia. The Speaker of the Catalan Parliament, Núria de Gispert, will chair the committee due to its importance. De Gispert has guaranteed she will play the “neutral” role of “moderator”. On the same day, the youth of the parties supporting the creation of this committee signed a manifesto backing up Catalonia’s right to self-determination.

On Saturday evening, 90,000 people gathered in FC Barcelona Camp Nou stadium to attend a concert backing Catalonia’s right to self-determination. The event, organised by a civil society entity – Òmnium Cultural – and without public funding, called for a self-determination referendum in 2014. The two largest political parties in Catalonia, which share a parliamentary stability pact, stated that a specific date for a self-determination vote should be fixed after December 2013. In addition, they insisted that the Catalan President will send a letter to the Spanish Prime Minister in July asking for this vote to be organised. However, in Madrid, the reactions have been almost non-existent. The Spanish Justice Minister insisted that a referendum would be illegal since sovereignty is rooted into the Spanish people as a whole.