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The number of public employees in Catalonia has been reduced by 4.76% over the last year, while in the whole of Spain the reduction was of 3.97%, due to the budget cuts in the public sector. However, the number of civil servants in Catalonia was already significantly lower than the Spanish average, according to a study issued by the SME association PIMEC. In January 2013, there were 40.7 civil servants for every 1,000 inhabitants in Catalonia, while the Spanish average was 57.4 and it reached 79.6 in the Autonomous Community of Extremadura. In fact, 26.7% of the Extremadura’s workforce is employed in the public sector, while the percentage drops to 11.1% in Catalonia. PIMEC stated in its report that, if Catalonia had the same proportion of public employees as the Spanish average, its unemployment rate would drop from 24.5% to 20.5%, with 150,000 fewer jobseekers.

The President of the Catalan Government, Artur Mas, officially announced on Tuesday that last year’s budget will be extended for the whole of 2013, since the 1.58% deficit target imposed by the Spanish Executive is too low and arrives too late. However, he explained that the budget extension guidelines will meet the 1.58% deficit target, because otherwise they would not have the money to pay for the additional spending. Furthermore, Mas announced they will take the “unfair and illegal split” of the deficit targets among the different government levels to court, since they consider the Spanish Government has not done it “in a proportional way”, since it keeps most of the deficit allowed for Spain’s total public sector for itself. Some opposition parties have strongly criticised the Catalan Government for extending the budget.

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%.

By the end of July there were 6,859 fewer people registered at the Catalan Public Employment Service (SOC) than a month ago, which leaves the total number of registered unemployed individuals at 610,429. The current amount of jobseekers is now the same level as September 2011. Unemployment levels have been decreasing in Catalonia for the last five consecutive months. In addition, last July’s drop is the most significant reduction in this month of the year since 2010. In the whole of Spain, the unemployment rate decreased by 1.36%, with 64,866 fewer people registered at the Public Employment Service offices. This means that by the end of July there were 4,698,814 individuals registered as unemployed in Spain. The Catalan Government states that, if the trend is kept during the second semester, the economic crisis would have reached “its lowest level” earlier this year.

“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 Catalan Government has reminded it has the exclusive powers to rule local governments in Catalonia, an authority which stems from the Catalan Statute of Autonomy approved by the Spanish Parliament and a binding referendum. Therefore, it does not recognise the Spanish Government’s law proposal on local governments, approved last week in Madrid, and will reject any imposition. The new Catalan law foresees the volunteer merging of municipalities and elimination of 1,034 remunerated positions in the County Councils. It also reshapes the body managing services within the Barcelona Metropolitan Area. Furthermore, it strengthens the control on the creation of new local bodies and the public services offered by municipalities.

The new President of the Spanish Constitutional Court, Francisco Pérez de los Cobos, has turned out to be a member of the People’s Party (PP), which runs the Spanish Government. In addition, the expert in labour law had drafted several reports for the PP on several issues. On top of this, Pérez de los Cobos wrote a book with many sentences against Catalonia and Catalan citizens, amongst other controversial stances. According to the Catalan Government, this person cannot chair an institution that has to act as a referee between the different levels of government in Spain and that has to interpret the Constitution regarding very sensitive issues, such as Catalonia’s self-determination. For this reason, the Catalan Government demanded that Pérez de los Cobos be excluded from all the cases that involve the Catalan Executive.

In March of this year the Catalan Supreme Court (TSJC) cancelled the Catalan Government’s allocation of the publicly-owned Aigües Ter-Llobregat (ATLL) – which supplies water to the 5 million people of Greater Barcelona – to the joint venture led by Acciona and including the Brazilian investment bank BTG Pactual. The Government presented an appeal but the TSJC confirmed on the 19^th July its previous decision. Now, the Catalan Government has decided to take the issue to Spain’s highest court to defend the allocation. The Government is convinced the tender process was done correctly, but the other main contender, Agbar, states the opposite. In addition, a Catalan Government’s internal body overlooking public tenders stated that Acciona’s offer should not have won.

The Spanish National Police has allocated more than half of its recently graduated agents to be sent to Catalonia. Of the 418 that passed the police training this year, 231 are destined to work in Catalonia, a figure which represents 55% of the total. The Director General of the Spanish Police, Ignacio Cosidó, stated how these figures show that the force “has a strong willingness to remain in Catalonia”. He also added that the Spanish Government prioritises security within Catalonia. However, the Catalan Police, called the Mossos d’Esquadra, has the majority of police power in Catalonia, except customs control and the fight against international and organised crime. In the rest of Spain – except the Basque Country – Spanish Police does the majority of the police work.

By the end of June, there were 873,000 people in Catalonia without work and looking for employment, according to the latest Active Population Survey (EPA). This represents 29,300 fewer individuals than 3 months ago, which is the highest unemployment reduction in the second quarter of the year since 2002. However, employment levels have only increased by 11,800 people, which means that this year Catalonia has experienced the lowest increase in job creation for this period of the year since 1998. The Catalan unemployment rate is now 23.85%, while the Spanish average is 26.6%. In the whole of Spain, the number of people unemployed decreased by 225,200, which means that the total number of unemployed people is now below the psychological landmark of 6 million individuals (5,977,500).

The Catalan president argued that if strict deficit targets are imposed upon his government budget again, it will be impossible to promote growth and create jobs, thus affecting the economy of Catalonia, Spain and the whole of southern Europe. The Spanish government will publish in the next few days new regional deficit targets for 2013 and Catalonia is asking for more flexibility. “If they do not offer us what we need, we won’t be able to stimulate our economy, and if we can’t do that, the whole of Spain and southern Europe will be affected”, stated Mas.

The agreement to sell the mildfielder includes a clause that stipulates both teams will play against each other in a friendly. The match will be played sometime in the next four years. The 22-year-old leaves the Blaugrana after playing for the first team for two seasons. Thiago Alcántara do Nascimiento, born in San Prieto Vernotico, Italy, started playing in FC Barcelona’s youth system at the age of 14, in 2005. Thiago has played a crucial role for Spain throughout his international career. His excellent performance in the latest U21 EURO Championship in 2013, where Spain claimed the title, saw the midfielder win the MVP of the tournament award.

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.

The Spanish Transport Ministry and Barcelona’s City Council signed an agreement to unblock the construction work of La Sagrera train station, which was on hold due to the current financial crisis. This project is the main urban planning initiative Barcelona has been trying to develop since the Olympics. It involves building a huge inter-modal station, combining high-speed trains, short- and medium-distance trains, underground trains and buses. In addition, many retail, office and housing buildings would be built on top of the station and nearby. On top of this, a 4.5 kilometre-long park would be created, covering the rail yard and connecting several neighbourhoods that are now separated by the tracks. In early 2013, the project was at risk since the Spanish Government had not guaranteed its funds, despite the fact that construction work started years ago.