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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.

Just 10 days after their last meeting at the Camp Nou, Barça and Atlético Madrid face each other once again on Wednesday night at 10.00pm (CET) in the first leg of the Spanish Cup quarter-finals. Lifted by their performance in the 3-1 win last time out, Luis Enrique’s team have hit a good patch of form as they go into the match. However, the boss is well aware of the danger Atlético pose, warning at his pre-match press conference: “Atlético are a fearsome side over two legs … We are going to need a better attitude than them and to make the most of every footballing resource we have”. Xavi is coming back into the Barça squad after his injury lay off and Tiago and Ansaldi are the visitors’ only injury absentees.

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 Argentinean scored his second consecutive hat-trick at Deportivo’s Riazor stadium in a 4-0 win – Sidnei putting the ball in his own net for the fourth. Riazor was silenced by yet another stunning display from Leo Messi. Just like he did the last time he visited the Deportivo stadium, the Argentinean found the net three times as Barça collected three hugely important points to maintain the pressure on Spanish league leaders Real Madrid, who won at Getafe earlier in the day.

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.

Catalonia ended 2014 with an annual inflation rate of -0.7%, the lowest rate since 1978, when records for the Spain’s Autonomous Communities began, according to data published on Thursday by the Spanish Statistics Institute (INE). The previous month, at the end of November, the annual consumer price index registered a rate of -0.3% in Catalonia. In the whole of Spain, the annual inflation rate at the end of December 2014 was -1%. This is the lowest rate registered since December 1961, when comparable data started to be collected. At the end of November, prices were decreasing by -0.4% in annual terms in Spain as a whole. Therefore, both in Catalonia and in Spain overall, last year ended with a significant price drop, mostly due to falling fuel prices.

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. 

After weeks of negotiations, the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, and the President of the left-wing pro-independence party ERC, Oriol Junqueras, have still not reached an agreement on whether to call early elections and whether to run together or separately. These elections should become a ‘de facto’ referendum on Catalonia’s independence from Spain. On Friday, it seemed they were close to an agreement, but in the evening it was obvious they had still some issues to discuss. During the weekend representatives from both the CiU and the ERC called on each other to close the deal. However, on Monday, the deal was yet to be closed and the main civil society organisations behind the massive pro-independence demonstrations from 2012, 2013 and 2014 are starting to lose their patience. Furthermore, the rest of the political parties have been highly critical of the long weeks of talks.

The Fundació Gala-Salvador Dalí, which runs the surrealist genius’ museum in Figueres (near Catalonia’s Costa Brava and the French border), has purchased ‘Violetes imperials’ (‘Imperial violets’) from a private collector. The piece from 1938 is a dark creation, painted during Spain’s Civil War and just before the start of the Second World War. It will be on display at the museum from Tuesday onwards. The painting, the price of which has not been disclosed, belongs to the Catalan artist’s surrealist period, but does not employ the colours regularly used by Dalí. Nonetheless, ‘Violetes imperials’ does depict some of the symbols used by one of the world’s most important artists of the 20^th century. 

The left-wing pro-independence party ERC has accepted the last proposal put forward by the President of the Catalan Government, Artur Mas, to run separately in early elections but with a large part of civil society representatives and independents being included in the President’s candidacy. However, the ERC has not ruled out the possibility of also including civil society representatives in its own list and wants elections in March. Any such elections should become a ‘de facto’ referendum on independence. The Catalan President accused the ERC of “twisting” his proposal. Furthermore, sources of the Catalan Government criticised the ERC’s “intransigency” because “they have not moved from their initial stance” of running separately in elections taking place this winter. Mas initially wanted to run together but was not particularly in a hurry to call the elections.