what to do catalonia

In the last number of weeks, regional governments in Spain have been taking the blame for the deficit, and in the past week have done so at an international level. However, Spain’s Central Government is responsible for 63% of the country’s deficit and 75% of public debt, despite controlling less than half of public expenditure and having far greater control over revenue. Regional governments have produced less than 20% of Spain’s public debt and in 2011 were responsible for 33% of the country’s deficit, despite representing around 40% of the public expenditure total and managing the most expensive and socially-rooted policies (healthcare, education, social grants, public transportation, etc.).

The Catalan President, Artur Mas, has met with the UK Deputy Prime Minister, Nick Clegg at a summit of European Liberal leaders. He stressed that Catalonia is doing “its homework” despite the excessive and “continuous fiscal drainage” from the Spanish State, which “is unprecedented in Europe”. “European leaders must understand” Catalonia’s situation, Mas said. “We need to explain ourselves” […] “because otherwise the only image that is received abroad is distorted”. He also explained that Catalonia’s GDP is the size of Portugal’s and Finland’s, and has an export level similar to Denmark. Mas also criticised Rajoy’s recent tax increase.

The Spokesperson for the Catalan Government has said that the new Spanish Economy Minister’s proposal goes against the Constitution and Catalonia’s self-governance. The Basque Country is also against the measure announced by Luís de Guindos in an interview with the Financial Times. He said that the crisis “was an opportunity to impose hard conditions and measures” on the Autonomies; he also added that before the Autonomies pass their budget, the Spanish Government will have to approve it. The next day, the Spanish Vice President refused to go into detail on the issue but stated that every administration has to commit to the deficit objective.

The winner of the Spanish Elections, Mariano Rajoy, outlined his government programme at the parliamentary debate on his approval before being officially appointed Prime Minister. Rajoy, without revealing any details, talked about redefining public powers, reforming public administrations, homogenising welfare policies and ensuring market unity. The Centre-Right Catalan Nationalist Coalition (CiU), the Catalan Socialist Party (PSC), the Catalan Green Socialist and Communist Coalition (ICV-EUiA) and the Left-Wing Catalan Independence Party (ERC) warned Rajoy of not affecting Catalonia’s self-government with his reforms.

‘Pa Negre’ (‘Black Bread’) and its nomination to represent Spain at the 2012 Oscars reflects the desire of Catalan productions to shine with their own light, without losing their identity nor language along the way. Catalan cinema has reached a new stage in its history. Powered by a generation of young directors and a renewal of themes, Catalonia’s film industry wants to expand its borders and become part of the international cinema market.

Both governments are currently defining their strategies and building their respective cases in preparation for a discussion on the issue in the coming months. The Spokesperson for the Catalan Government, Francesc Homs, has sent a clear message to the next Spanish Prime Minister: Catalonia will only accept a negotiation on a new fiscal model, which would reduce the financial transfers to Spain’s poorer regions. If the Spanish Government refuses to discuss about it, Catalonia will organise a citizen vote on it. Over the past few days, the People’s Party has hinted that the Catalan Government’s main claim is not a matter for discussion.

Artur Mas, the President of the Catalan Government, has announced the main austerity measures to reduce Catalonia’s public deficit and meet the 1.3% objective for 2012. Mas stressed that these measures are to be taken in order to reduce the deficit and not harm social policies. The Catalan People’s Party was satisfied with the plans, while the Left-Wing parties warned that they would harm the middle classes. The Catalan President also sent a warning to the next Spanish Prime Minister: a new “fiscal agreement” for Catalonia might be “one of the few opportunities left” to rebuild relations with the rest of Spain.

Catalonia would have lost 60,000 residents by the end of 2011, according to the INE. For the first time in decades, Catalonia's population will fall this year. In the next ten years, Spain’s population would decrease by 1.2% if current demographic trends are maintained. At the end of 2010, Catalonia had 7,512,000 residents and Spain 47,021,000.

“It means that we are not wanted, we are excluded, we are ignored” stated Artur Mas, President of the Catalan Government and leader of the Centre-Right Catalan Nationalist Coalition (CiU). It was the first time he has spoken on the Constitutional amendment limiting the public deficit that has been agreed on only between the PSOE and the PP. The CiU has protested against reforming the Constitution solely on the basis of the agreement of only two parties. Members of the PP and the PSOE have been trying to convince the CiU to support what both parties had previously agreed, and PM Zapatero (from the PSOE) asked the CiU to show some “moderation”.

Catalonia consolidates its position as the first tourist destination within Spain, with 26% of all visits. International tourism within Catalonia increases in July by 5.1% compared to last year.

The yields for Spanish 10 year bonds are well over 6% while economic growth remains slow

Lex Writer Richard Stovin-Bradford argues in an interview with the CNA that Catalonia “is adopting strong measures” to cut its deficit while some autonomous communities “have not yet reduced the spending” as much.

Catalonia and five other autonomous communities have had their long term rating downgraded whilst the Spanish state's credit rating comes under review.

The final 365 boxes of the controversial civil-war archives were returned on Wednesday, ending a 5 year process to reinstate them in Catalonia. However several artefacts still remain in Salamanca.

However, if the question is open to other options, 33% would prefer a Catalan State within a Federal Spain, 31.8% the current situation as an Autonomous Community and 25.5% want Catalonia to be an independent nation. The poll results also show that 75.5% of Catalans want the Catalan Government to raise all the taxes, while only 18.2% prefer the current system through which the Spanish Government raises the main taxes. The poll was compiled by the Catalan Polling Centre (CEO), which is managed by the Catalan Government.