spanish government

The President of the employer’s association Cercle Català de Negocis (CCN), Albert Pont, stated that part of the Spanish Government’s debt is “odious” and therefore Catalonia cannot recognise this “illegitimate debt”. However, Pont underlined the “willingness” to pay for the proportionate share of the rest of the debt, which should be calculated “item by item”. In an exclusive interview with the CNA, he denounced a public debt generated “for the benefit of no more than a few companies” that “provide works, services and infrastructures” for the Spanish Government. “If Spain does not recognise the independence of Catalonia, Spain should assume its debt completely and the Catalan Government its own debt”, he warned. In addition, Pont denounced the fact that the Spanish Executive is taking away “between €16 billion and €18 billion” from Catalonia each year, a fiscal deficit amounting to “around 9%” of the Catalan GDP. “The IMF already established that fiscal deficits exceeding 4% of the GDP of a territory amounted to colonial relations”, he highlighted. Besides, he explained that “the average custom duty is between 1.4% and 1.5%”. However, Pont ruled out this possibility since a “political solution” will be reached to keep Catalonia within the EU.

The Catalan Government and the other four Autonomous Community executives that are not run by the People’s Party (PP) are totally opposed to the Spanish Executive’s Education Reform, which recentralises powers, homogenises curricula, fosters the presence of religion and sidelines Catalan language and history. The Reform has raised a huge controversy in Catalonia, since it ends the Catalan school model that has been in place for the last 35 years and is backed by a large consensus. On Wednesday the Education Ministers of Catalonia, the Basque Country, Andalusia, Asturias and the Canaries criticised the Spanish Government’s “lack of dialogue”. They pointed out “the improvisation, precipitation and imposition” of the Spanish Education Minister, José Ignacio Wert. They also argued that it is “impossible” to “implement” the Reform in the next school-year.

The economic crisis and especially the recession starting in 2009 have contributed to the growing weight of the underground economy in Catalonia and in Spain, according to a study presented on Wednesday by the Spanish Ministry of Finance’s Union of Technicians (Gestha). This study is entitled ‘L’economia submergida passa factura. Avançament del frau a Espanya durant la crisi’ (Underground economy takes its toll. Growing fraud in Spain during the crisis) and is led by Jordi Sardà, a professor at Tarragona’s Universitat Rovira i Virgili (URV). It reveals that according to the latest figures (from 2012) the underground economy has absorbed 24.6% of Catalonia’s GDP, hiding €47.36 billion. In 2009 the weight of illegal activity amounted to 22.3 %, meaning that between 2009 and 2012 some €4.6 billion were hidden.

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.

In appeal, the Spanish Supreme Court has sided with the family who requested their son to be taught in Spanish in school, alongside Catalan. Despite the Constitution not advocating pupils had “the right to be taught in Spanish”, but only stating they had “the right and duty to know Spanish”, a dozen families have requested their children to be taught in this language, turning to the judicial system. Whilst the Constitutional Court has validated on two occasions the Catalan schooling system, based on Catalan as first language of instruction, the Supreme Court ruled against it. The Catalan Government was offering individualised attention to these children, but the judicial decision states that Spanish has to be used for “the entire class of the pupil”, even though the rest of the pupils have not requested to be taught in this language.

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.

Two Spanish Ministers have sent two warning messages on the same day. On the one hand, the Spanish Foreign Affairs Minister, José Manuel García-Margallo, announced “a 25% or 30%” of “immediate” loss of wealth for an independent Catalonia “according to several studies”, which have not been mentioned by name. Margallo warned Catalans about the “harmful and lethal consequences” that independence would bring. He also stated that the self-determination process can also cause “an employment loss” since it is hurting Spain’s external image. On the other hand, the Spanish Justice Minister, Alberto Ruíz Gallardón, guaranteed that “Spain has the necessary tools to defend […] the national sovereignty, which is in the hands of its citizens as a whole”. Furthermore, Gallardón emphasised that “Spain is a great nation that is worth living in and loving, and which is worth fighting for”.

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.

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”.

The Catalan Parliament has approved a resolution to formally request the Spanish Parliament to transfer the powers to organise referendums to the Catalan Government, following Article 150.2 of the Constitution. This mechanism will allow the Catalan Executive to directly call a self-determination referendum, a similar formula to the Scotland case. 87 MPs (64.4% of the Parliament) have backed the proposal and 43 MPs (31.8%) have voted against it. The 3 MPs of the radical left-wing and independence party CUP have abstained, arguing they do not think Spain has anything to say on Catalonia’s self-determination. Furthermore, 3 MPs from the Catalan Socialist Party (PSC) have also backed the text, breaking the party leadership’s instructions. This vote is a true earthquake for the PSC, which might eventually split up.

The Mayor of Lleida, Angel Ros, announced he was quitting the Catalan Parliament since he rejects voting against self-determination on Thursday, as imposed by the leadership of the Catalan Socialist Party (PSC). 4 other MPs might break from the party lines as well and a 6^th one - who had expressed serious doubts - finally announced he would follow the leadership instructions. They represent 30% of the PSC MPs, so their ‘rebellion’ is far from being an anecdote. In fact, the party leadership warned them they might even end up being expelled if they were breaking the ranks on this crucial vote. On Thursday, the Catalan Parliament will vote on an initiative asking the Spanish Parliament to transfer the powers to organise a referendum to the Catalan Government, following Article 150.2 of the Spanish Constitution. This formula – similar to the one used in Scotland – would enable the organisation of a legal self-determination referendum in Catalonia, something the PSC explicitly promised in the last elections but is now rejecting.

The Director of Barcelona’s Centre for Regenerative Medicine (CMRB), world-famous scientist Juan Carlos Izpisúa, resigned due to the lack of financial and political support from both Spanish and Catalan Governments. Such news was first published by Spanish newspaper ‘El País’ and then confirmed by sources in the research centre. Internationally, Izpisúa is considered to be one of the most esteemed and learned scientists in the field of stem cells. With the Director stepping down, the CMRB could well lose most of its current projects. Indeed, 18 of the 21 projects are the intellectual property of Izpisúa and might no longer be carried out in the Barcelona-based research centre if Izpisúa quit.