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The Catalan Parliament delivered a petition to the Constitutional Court in order to defend the Catalan law on opening hours for shops, which is more restrictive than the Spanish one. Catalonia is trying to preserve its small urban shops model, where most of the shops are run by families. The Spanish Government passed a reform in 2012 forcing Catalonia to allow longer opening hours. In 2013, the Catalan Executive promoted a new bill to invalidate the Spanish one. The new law was approved with 80% support in the Catalan Parliament in January 2014, but the Spanish Government appealed against it a few months later, and the Constitutional Court suspended the Catalan text in late 2014. 

According to a study by the Professional Association of Economists of Catalonia (Col·legi d’Economistes), an independent Catalonia would obtain a much better grade from rating agencies than it currently gets, taking into account its diversified economy and higher GDP per capita than the European average. Specifically, it would obtain an A+ rating, 7 levels higher than the current BB ‘junk bond’, using Standard&Poor’s classification. The study highlights that without the current fiscal deficit with the rest of Spain, the rating would be “at least” that of the Basque Country and would enable the Catalan Government to access the international financial markets. Catalan taxpayers pay much more to the Spanish Government than the amount they get back in terms of services and infrastructure; a fiscal deficit equivalent to between €13bn and €17.5bn per year.

The current President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, will have to testify as a witness before the Catalan Parliament’s committee investigating the alleged fiscal fraud and possible corruption committed by the former Catalan President and CiU’s leader until 2003, Jordi Pujol. Artur Mas is Pujol’s political heir and was the ‘number 2’ in his last cabinet. Pujol, who uninterruptedly chaired the Catalan Executive between 1980 and 2003, confessed last July that his family had kept a fortune in Andorra for the last 34 years without informing tax authorities. The confession shocked Catalan society, since the historical leader of the conservative Catalan nationalists was a crucial figure in the fight against Franco’s dictatorship, the transition to democracy and the recovery of Catalonia’s self-government. Now, Pujol, his wife and 6 of their 7 children are being investigated by the judiciary for alleged fiscal fraud and several corruption scandals. 

The governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC have reached an agreement to approve the Catalan Government’s budget for the current year. After the President of the Catalan Government and CiU leader, Artur Mas, and the ERC’s President, Oriol Junqueras, reached an agreement on holding early elections on 27 September as a plebiscite on Catalonia’s independence, both parties reopened the budget talks. After 10 days of negotiations, they have reached a definitive agreement, which includes a €100 million fund that will bring more resources for social programmes. They have also agreed to stop paying some allowances to senior officials. Furthermore, they will add €10 million to the development of Catalonia’s own tax administration and they will also create the Agency of Social Protection, which is to manage Catalonia’s Social Security system.

Indignation at the Castor Project has increased due to the €1.35 billion payment issued by the Spanish Government to Escal UGS, the company behind the controversial offshore gas platform. The amount will be charged through gas bills to consumers over the next 30 years, starting on April 2016, making individual citizens pay the private-business bailout, partially funded through €1.4 billion worth of bonds from the European Union. This business project failed after a gas injection caused almost 1,000 small earthquakes in Southern Catalonia and northern Valencia. The Spanish Executive has been forced to compensate the company due to clause 14 of the 2008 Royal Decree, according to which the state would pay for the bailout in the event of the project failing to come to completion. 

The Constitutional Court has accepted to debate the Spanish Government's last appeal against the Catalan Executive's tax on bank deposits, which has to be paid by financial entities. Such a decision represents the automatic cancellation of the tax for an initial period of 5 months. Catalonia approved such a measure in December 2012 and two weeks later, the Spanish Government approved its own tax with a 0% rate, so it was 'de facto' cancelling the regional taxes. However, instead of compensating Catalonia for having cancelled the tax – as it is legally obliged to do – the Spanish Government refused to do so, since it argued that the tax had not entered into force yet and took the issue to the Constitutional Court. The Court initially accepted the Spanish Executive's appeal and the tax was temporarily suspended, but in May 2013 it was lifted. In July 2014, the Spanish Government modified the tax with a 0.03% rate and in December it presented a new appeal against the Catalan tax, which brought in some €680 million in 2014.

The Catalan Government is expecting to post a 2.2% deficit for the whole of 2014, corresponding to some €4.41 billion. However, the definitive figure will not be known until March. This is more than  double the 1% deficit target that the Spanish Government unilaterally imposed on the Catalan Executive. Over the last few years, the two governments have quarrelled about deficit targets, since the Spanish Executive is imposing much stricter objectives on the Autonomous Communities than those it allows itself, despite regional governments exclusively managing and funding the basic Welfare State services such as healthcare and education. For instance, for 2014, the Spanish Government only allowed the Autonomous Communities to only have 15% of the whole deficit allowed by the European Union to Spain’s entire public sector, despite managing some 35% of the country’s public funds and basic services.

The Catalan Government has formally requested €9.46 billion in loans from the Liquidity Fund for the Autonomous Communities (FLA), run by the Spanish Finance Ministry, to face debt payments and other obligations during 2015. This is the only way that the Spanish Government authorises the Catalan Executive to request liquidity as it has banned Catalonia’s access to financial markets to obtain additional funds, as many governments do when they issue bonds or ask for loans. Therefore, the FLA has become the Catalan Executive’s only bank and a source of funds that must be returned. However, for the first time this year, the Spanish Government will not make money on the FLA and has set a 0% interest rate, which will have a €300 million positive impact on the Catalan Executive’s budget.

The document will be sent to the United Nations, the European Parliament, the European Commission, the Council of Europe and the Organization for Security and Co-operation in Europe (OSCE). The Spanish Government “violates the Catalan people’s right to decide its own political future and bans the exercise of democracy through a referendum or an internationally standardised consultation vote”, reads the complaint, signed by 1,386,628 citizens and 3,703 elected representatives such as mayors and MPs. They complain about the “Spanish Government’s anti-democratic attitude”, which ignored an electoral mandate from 2012 to hold a legal and binding self-determination vote in Catalonia, among other facts. The signatures were collected during the symbolic vote on independence held on 9 November by the civil society organisations Catalan National Assembly (ANC) and Òmnium Cultural, as well as by the Association of Municipalities for Independence (AMI). 

Following the agreement reached last week between the President of the Catalan Government and leader of the governing centre-right pro-Catalan State coalition CiU, Artur Mas, and the President of the left-wing pro-independence party ERC, Oriol Junqueras, on calling early elections in September as a plebiscite on Catalonia’s independence from Spain, the Catalan Executive’s budget for 2015 is now closer to definitive approval. On Monday, the ERC MPs started to withdraw their full amendments to the different sections of the Catalan Government’s budget. Now, the ERC is asking the CiU and the Government to debate their specific amendments on precise programmes in order to have “a fairer budget” which is less regional and more that of a country in its “national transition”, they said.

The Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, strongly criticised the calling of early elections in Catalonia, announced by the President of the Catalan Government, Artur Mas, for 27 September as a ‘de facto’ plebiscite on independence. Sáenz de Santamaría stated that such a call shows Mas’ “failure” and his “incapacity” to run a government. She also said that the Catalan President is announcing elections 8 months in advance “to hide his ineffectiveness”. Besides this, the Spanish Deputy PM warned Catalan authorities that any measures adopted in the coming months that exceed Catalonia’s self-rule powers will be taken to the Constitutional Court. 

The President of the Catalan Government, Artur Mas, insisted on Friday that “a clear absolute majority” will be needed for the pro-independence parties in the early elections scheduled for 27 September to make the world understand that the creation of a new independent state must be negotiated. In a radio interview, Mas explained that the road map towards independence - if there is an electoral majority - is still being negotiated among the different parties and organisations, in order to run separately but with a shared road map in case of victory. This road map would include demanding the start of immediate negotiations with the Spanish Authorities to reach an agreement on Catalonia’s independence from Spain if a majority of citizens vote for this scenario on the 27^th of September. 

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.

The Spanish Prime Minister, Mariano Rajoy, who is also leader of the conservative and Spanish nationalist People’s Party (PP), strongly criticised the announcement of early elections made by the Catalan President, Artur Mas, the evening before. Mas announced elections in Catalonia for 27 September this year, transformed into a ‘de facto’ referendum on independence. These elections are the only way Catalans can vote on this issue, taking into account the Spanish Government’s total opposition to even talking about self-determination demands, which were backed by an absolute majority of citizens in the last Catalan elections (held in November 2012) which themselves were already a plebiscite on having a legal vote on independence. However, as opposed to the British Government, Rajoy refused to even discuss these demands, has not made any concessions, and has showed total opposition, which has even involved the criminal prosecution of the Catalan President.

The President of the Catalan Government, Artur Mas, has announced early elections to be held on the 27^th of September this year, which will become a ‘de facto’ referendum on independence from Spain. Before then, the Catalan Government and Parliament will continue to develop some basic state structures, such as Catalonia’s own tax administration and Social Security system. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing pro-independence party ERC have now “rebuilt” their parliamentary stability pact for the current term after weeks of public disagreements and confusion over the next steps of the self-determination process. After a long meeting on Wednesday evening between Mas, the ERC’s President Oriol Junqueras and representatives from the main civil society organisations supporting independence, they have also agreed on running separately but sharing the same road map to build an independent state from the day after the elections, if a majority of Catalans vote for this option.