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The Cercle d’Economia, the main Catalan economic forum open to businesspeople and academics, has published an opinion note on the political context following the last Catalan elections. In the note, the Cercle asks the Spanish Government “to talk” about the Catalan self-determination and “to reform” the Constitution accordingly. The Cercle does not explicitly back an independent Catalonia but it supports a deep reform of Spain’s territorial organisation and the finding of a negotiated solution for both parties, which may be reached through a legal referendum. In addition, the Cercle asks for a review of Spain’s internal distribution of the deficit targets among government levels and to increase those of the Autonomous Communities.

The President of the Catalan Government, Artur Mas, and the King of Spain, Juan Carlos I, met on Thursday for the first time since Mas was re-elected president and the Catalan Parliament approved a Declaration of Sovereignty of the People of Catalonia. The meeting lasted 45 minutes and none of the participants officially commented afterwards. However, Mas, once in Barcelona, referred to it during a literary prize ceremony. The Catalan President underlined that “we will always have to go and explain ourselves” regarding Catalonia’s self-determination process. According to him, this proves Catalonia’s “willingness to always talk”. Besides, Mas also explained to the monarch that the current deficit targets imposed on the Autonomous Communities are not allowing them to guarantee the Welfare State.

The Catalan Government criticised the Spanish Executive’s obstacles to Catalonia’s own external relations action, as “in a globalised world” this “is not a caprice”, but essential to be recognised at an international level and to attract foreign investment. The Catalan Minister for the Presidency, in charge of External Relations, Francesc Homs, criticised the Spanish Government’s “old-fashioned” way of understanding diplomacy and gave the example of spending in 2012 “€330,000 on cutlery and table cloths”. Homs emphasised the main commercial focus of Catalonia’s external offices and their “modesty”. The Catalan Government has a total of 5 political representation offices – including for the European Union – and 34 commercial offices.

Barcelona’s reign as host to the Handball World Championship came to an end on Sunday evening as Spain destroyed Denmark by no less than sixteen goals at a sold-out Palau Sant Jordi (35-19). Seven Catalan players, most of them on the books of FC Barcelona Intersport, were part of the sixteen-strong world championship winning team. Last night, Croatia beat Slovenia 31-26 to take the bronze medal on the podium.

Barcelona’s Palau Sant Jordi played host on Friday evening to two riveting semi-finals in the World Handball Championship as Spain beat surprise package Slovenia 26-22 thanks largely to a strong defence while Denmark made it through to tomorrow’s final after defeating Croatia by a wider margin: 30-24.

The Parliament of Catalonia has approved an historical declaration of sovereignty claiming the right to self-determination by the Catalan people. The full text is included in this news item. The declaration paves the way for the organisation of a self-determination referendum on Catalonia’s future within Spain and its hypothetical independence. It was supported by 66.4% of the MPs who voted, representing 63% of the total parliament. These supporters came from 4 different groups. 2 MPs abstained because the declaration does not include other Catalan-speaking territories and five Socialist MPs did not vote as a protest because their party is officially opposed to the declaration. Those opposing the declaration included 32% of the MPs who voted, representing 30.4% of the total chamber.

The association’s People’s Rights Commission defends the celebration of a referendum and the unilateral independence declaration if the Spanish Government insists in not allowing a citizen vote on the issue. While is it true that the current Spanish Constitution does not allow for a self-determination referendum, the Barcelona lawyers' association argues that “in a democratic society, the law should be the expression of the people’s choice”, and therefore it should be modified accordingly to allow the referendum. It also highlights that 20 of these states are the result of secession, such as Norway, Finland, Ireland, Iceland, Lithuania, Estonia, Latvia, Slovenia or Montenegro.

The Catalan Government has created a Treasury Secretariat within its Finance Ministry, which will be in charge of managing revenue, with the objective of developing Catalonia’s own tax office. The creation of a treasury of its own would allow the Catalan Executive to collect all the taxes generated in Catalonia, as Navarra and the Basque Country have been doing for decades. It is one of the electoral promises of the governing Centre-Right Catalan Nationalist Coalition (CiU) and is also part of the parliamentary stability agreement reached with the Left-Wing Catalan Independence Party (ERC). A Catalan tax office collecting all the taxes is an historical claim of a large part of the Catalan society. However the Secretariat created is in line with the CiU’s strategy of creating state structures and it has been criticised by the pro-Spanish unity parties.

The Spanish Prime Minister, Mariano Rajoy, has accepted the offer sent by the new Catalan President to talk about Catalonia’s claims, while keeping them “always within the Constitution”. Furthermore, he has rejected the possibility of modifying the 0.7% deficit target imposed on the Autonomous Communities for 2013. The Catalan Finance Minister, Andreu Mas-Colell, explained that, if the payment of financial interest is excluded, meeting next year’s 0.7% deficit target represents a budget surplus, which “makes no sense from an economic point of view in a context of recession”. Mas-Colell proposed that the Autonomous Communities meet a 1.5% deficit target in 2013, as they represent more than a third of Spain’s total public expenditure and Spain has been authorised a total deficit target of 4.5%.

Artur Mas, the leader of the Centre-Right Catalan Nationalist Coalition (CiU), and Oriol Junqueras, President of the Left-Wing Catalan Independence Party (ERC), have signed the parliamentary stability agreement, which includes the call for a self-determination vote by citizens and the modification of taxation in order to increase revenue. Mas will be re-elected President of the Catalan Government and the ERC will not sit in the Executive but will offer parliamentary support on the agreed issues. The CiU and the ERC are asking for other parties to add their support to the self-determination vote. In addition, they have stated that the taxes created with the sole aim of collecting more money will be temporary. Despite the electoral mandate, the Spanish Government totally opposes the referendum and is threatening the Catalan Executive with economic asphyxia.

The Spanish Fund for Orderly Bank Restructuring (FROB), which is run by the Bank of Spain and the Spanish Government, has announced that it will re-start the auction proceedings to sell Catalunya Banc and Banc de València. The selling process was temporarily frozen on the 21st of June, so as to wait for a calmer financial environment. The FROB decided to put the auction on hold, in order to wait for the results of the two independent audits on Spain’s banking system made by Oliver Wyman and Roland Berger. In June, Catalunya Banc’s auction was only pending the final offers by six financial entities to be completed. In September 2011, the FROB took control of Catalunya Banc, which de facto was nationalised.

Just before the Catalan election campaign kicks off, the survey centres run by the Spanish and the Catalan governments have both issued their own polls. 57% of Catalans would vote for independence in a referendum, according to the Catalan survey. In June the percentage was 51%. The Spanish survey did not include the question. Both polls agree that the Centre-Right Catalan Nationalist Coalition (CiU) – currently running the Catalan Government – would gain more votes, close to obtaining an absolute majority. The Catalan Socialist Party (PSC), which is against independence and already obtained its worst results ever in 2010, would lose between 30% and 45% of MPs. The People’s Party (PP) would obtain similar results, but might become the party in second place. The Left-Wing Independence Party (ERC) would increase its representation by 40% to 70% and might become the third party.

Pimec, the main SME association in Catalonia, issued a survey taken of its members. Two thirds of the interviewees would support Catalonia’s independence from Spain while remaining in the European Union. 21.1% would prefer a more federal Spain and only 12.1% would back the current situation. In addition, 97.5% of the interviewees support improving Catalonia’s fiscal scheme. Furthermore, 61.2% think a hypothetical boycott of Catalan products by Spain would not or would hardly affect them.

The Spanish Prime Minister, Mariano Rajoy, had previously accused the President of the Catalan Government, Artur Mas, of having blackmailed him by trying to “impose the fiscal agreement or accept the consequences” in last September’s meeting, when Mas proposed a specific fiscal agreement between Catalonia and Spain. The Catalan President denied having blackmailed the Spanish PM. According to Mas, Rajoy “did not want to negotiate a fiscal agreement” as he considered that “Catalonia is not as badly treated” as Catalans say. The Catalan President said he explained to Rajoy what would happen “if the answer to all Catalan claims is always ‘no’”. “It is not a threat, it is describing the reality. The President of the Catalan Government’s duty is to inform [the Spanish PM] about Catalonia’s situation” Mas added.

The Spokesperson for the Catalan Government, Francesc Homs, presented a report that analyses the normative and organisation duplicities at Spanish and Catalan level. The study, compiled by a Catalan Government's institute, concludes that the Spanish Government permanently invades Catalonia’s exclusive competences, both at normative and organisational levels. According to Homs, the Spanish Government’s attitude creates “contradictions” and “legal uncertainty”, which harms investments and the economy. Homs accused the Spanish Government of “keeping important administrative structures” despite having decentralised the competence, as is the case with tourism.