state structures

The Spanish Constitutional Court (TC) has unanimously suspended some precepts of the law on fiscal measures which foresees the development of so-called state structures in Catalonia. In particular, the magistrates have considered unconstitutional the plan for the creation of the Catalan Tax Agency, the catalogue of strategic infrastructures and the plans for the energy and railway sectors, amongst others. The suspension, which has now been confirmed, affects the same articles which were temporarily annulled in June 2015 when the Spanish Government asked for legal action against Catalonia’s plans for the creation of state structures. Later, in November 2015, the TC accepted the appeal presented by the Spanish executive to stop the reform of Catalonia’s Tax Agency.

The Catalan Government President and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, complained on Wednesday that his ally, the left-wing pro-independence party ERC, is not fully honouring their agreement to call elections on 27 September, which should become a 'de facto' vote on independence. According to Mas, the ERC is not offering its full parliamentary support to the Government. "There is an agreement signed in January, and it is also an agreement that talks about stability until elections are called" and "some [parliamentary] votes are being lost, which harm such a stability agreement", he said. Furthermore, he stated that elections will be "expectedly" held on 27 September and did not rule out the option of running in a cross-party list yet. The leader of the left-wing party, Oriol Junqueras, replied that the ERC is honouring the agreement and that Catalans will vote on 27 September.

The political parties and the main civil society organisations that support Catalonia's independence from Spain have agreed that the Catalan Parliament will issue a formal declaration to start building a new state and launch a constituent process, which would be put to a citizen vote at a later stage, if they obtain a parliamentary majority in the September elections. They have been holding a series of talks over the past few weeks in order to agree on a road map that sets out the steps to follow in case pro-independence parties obtain an absolute majority in the next Catalan Parliament elections. These elections have been called early and are being presented as a 'de facto' referendum on independence by the parties supporting this option, since they are the only way to hold a legal vote on this issue after years of the Spanish Government's unilateral blocking attitude.

The Catalan Parliament has finally approved the Catalan Government’s budget bill for 2015 and the complementary law on fiscal measures with the backing of the governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC. The CiU and the ERC introduced last-minute changes concerning the launching of state structures, such as Catalonia's own tax administration. These changes come after the Catalan Council for Constitutional Guarantees (CGE) warned that such state structures cannot go beyond Catalonia's current self-rule powers. The CiU and ERC want to build embryonic structures in order to develop them if a majority of citizens vote for independence in the next Catalan elections, which are to be transformed into a 'de facto' referendum. Opposition parties criticised the new budget for "consolidating" budget cuts and for developing state structures.

The Catalan Government’s Budget for 2015 includes some “unconstitutional” measures, according to the Council for Constitutional Guarantees (CGE), which is an advisory body issuing non-binding reports. The CGE has criticised a number of bill amendments developing some state structures, but not all of them. The body has highlighted the way the budget bill is to develop Catalonia’s own tax administration and its own competition authority, finding it to be at odds with the Spanish Constitution. However, the CGE does consider the way in which Catalonia’s own Social Security system would be developed (by launching the Agency of Social Protection) to respect the Constitution. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC have said they will modify the measures criticised and will develop the affected state structures in a similar way to the Social Security system.

A day after the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, announced his plan to further develop the so-called state structures before the 27 September elections, the leader of the left-wing Catalan independence party ERC, Oriol Junqueras, has once again requested to be part of the Executive and sit in Cabinet. Junqueras justified his request in order “to guarantee the indispensable state structures”, such as Catalonia’s own tax administration and Social Security system. The embryonic frame of such structures should be created before the next Catalan elections, which will be called early and will be transformed into a ‘de facto’ referendum on independence from Spain. On Tuesday, Mas had already ruled out the possibility of the ERC sitting in Government and, on Wednesday, the Catalan President stressed that the current Cabinet will only be in office for the next 6 months.

The conservative Spanish nationalist People’s Party (PP), which runs the Spanish Government, has appealed against the Catalan Executive’s 2015 budget bill, which will delay its definitive approval and implementation by up to one month. The new budget was supposed to be approved this week by the Catalan Parliament, after months of negotiations between the governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC. The new bill will increase social spending and also increase funds for Catalonia’s own tax administration and for the launch of a Catalan Social Security agency. The Catalan Government accused the PP of “parliamentary filibusterism” and warned them that the appeal “will not stop the [self-determination] process” nor the creation of “state structures”. However, it will damage families in need, as it will delay the implementation of new social programmes.

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.