Business

Catalan Minister for Territory and Sustainability, Josep Rull, and Catalan Minister for Business and Knowledge, Jordi Baiget, called for a “clear”and “verifiable”calendar for the Mediterranean Railway Corridor. They voiced these demands to the Spanish Minister for Public Works, Íñigo de la Serna, during the meeting of the Strategic Board for the Mediterranean Railway Corridor in Madrid. In response, de la Serna promised to promote this key infrastructure, which is set to transport freight and passengers non-stop from Gibraltar to Central Europe along the Mediterranean coastline, and explained that the delays in the construction resulted from a “lack of administrative capacity”to carry them out. The Board gathers together representatives from the parliamentary groups in the Catalan chamber, trade unions, business associations, chambers of commerce, professional colleges, universities, chartered institutes, and city halls.

The North American giant Amazon will open a new logistics center in Martorelles, 20 kilometers north of Barcelona, aimed at serving the European market. The 30,000 m2 plant will become operational in the fall and will be located in Martorelles’Can Roca business park. The new center will initially employ 200 people but is expected to create 650 jobs within the next three years. Martorelles’center will consolidate Amazon’soperations in Catalonia. It has already set up two plants near Barcelona while the main logistics center—which will be Amazon’s biggest in the south of Europe and will be located next to Barcelona’s ‘El Prat’airport—is expected to be operational by fall.

Spain’s budget for 2017 allocates €1.14 billion to invest in Catalonia, €30 million less than last year. However, as a percentage, the figure represents 13.4% of the total, which is higher than in 2016, which saw only 10.7% investment for Catalonia. The allocation is still below Catalonia’s contribution to Spain's GDP, which is 19%. Although most of the investment is oriented toward infrastructures, the figures are a far cry from the major investment that Spanish President, Mariano Rajoy, announced last week for Catalonia. Indeed, he said that €4.2 billion will arrive in Catalonia by 2020. Spain's Minister of Finance, Cristóbal Montoro, admitted that the budget doesn’t include the promised measures and assured that the investment “will move forward in 2018”.

Unemployment in Catalonia fell by 10.7% in March in comparison to the same month last year, totaling 446,017 people. According to the Spanish Ministry of Employment and Social Security, 6,325 people left the unemployment lists last month, which represents a slight 1.40% decline in comparison to February. However, with this drop, Catalonia has now registered 45 consecutive months of declining unemployment in annual terms. The number of jobless also fell across the whole of Spain. There were 48,559 fewer unemployed at the end of March and the number of people without a job totaled 3,702,317. Moreover, the number of unemployed in comparison to the same month last year fell by 9.58%, the highest decline registered in March since the beginning of the historic series.

Hong Kong-based multinational Thunder Power, which specializes in electric vehicles, is planning to open an R&D center in Catalonia. The center will become operational in 2018, involve an initial investment of €80 million, and create 200 jobs, a company statement revealed last Thursday. The group is also considering building a plant in Catalonia for assembly and distribution. This project will be ready by 2020, will create 1,000 jobs, and could produce up to 50,000 vehicles per year. The agreement was signed during the unveiling event of the first running prototype at the prestigious Eaton House in Hong Kong. Over 250 business professionals from Barcelona, Catalonia, and Hong Kong participated in the showcase, including the Catalan Minister for Business and Knowledge, Jordi Baiget, and the Second Deputy Mayor of Barcelona, Jaume Collboni.

The so-called Mediterranean Railway Corridor, a long-awaited piece of infrastructure which is set to transport freight and passengers non-stop from Gibraltar to Central Europe along the Mediterranean coastline, is one of the most representative examples of Spain’s lack of investment in Catalonia. Despite being essential not only for the Spanish economy but for the entire European economy as well, its construction has been repeatedly delayed. Even the European Commission has called for “cooperation between administrations” to implement the Corridor, which is regarded as a key infrastructure for Europe. Moreover, the delays in the construction of the Corridor are affecting private investment, the Catalan Government has warned. According to Catalan Minister for Planning and Sustainability, Josep Rull, the pending business investments are worth €300 million, of which €20 million corresponds to an investment from the German multinational Basf, which announced it will expand one of its plants in Tarragona.

Foreign investment in Catalonia throughout 2016 totaled €4.8billion, 1.3% less than in 2015. Indeed, 2015 had set a historic record in terms of foreign investment, registering a 57.8% growth in comparison to the previous year. Despite this slight decrease, 2016 represents the second best year in the historic series, according to data published this Tuesday by the Spanish Ministry for Economy, Industry and Competitiveness. Moreover, Catalonia ranks second in terms of foreign investment in Spain, Accounting for 20% of the investment and only surpassed by Madrid, which attracts 46.7% of foreign capital. Regarding Catalan exports, they totaled €5.3 billion in January, the highest figure for this month since 2000. This data confirms Catalonia as the leading territory in Spain in terms of exports followed by Andalusia, whose exports totaled €2.5 billion.

Barcelona’s El Prat airport will be connected with two US and two South American cities starting in June 2017 thanks to LEVEL, the new low-cost carrier of International Airlines Group (IAG). The company chose the Catalan capital to introduce its new brand because of its “international touristic appeal” and also because of the connections from Barcelona’s El Prat airport through Vueling, IAG’s CEO Willie Walsh explained. The new carrier will fly from Barcelona to San Francisco and Los Angeles starting at 99 euros and to Buenos Aires, Argentina and Punta Cana in the Dominican Republic starting at 149 euros. The flights will use A330-200 planes with crew from Iberia and IAG. More than 250 jobs are expected to be created in Barcelona, according to Walsh who presented the news this Friday morning at a press conference in Catalonia’s capital city of Barcelona.

The 2017 edition of the Mobile World Congress (MWC) registered a record participation of 108,000 visitors from 203 countries worldwide, 7% more than last year’s edition, according to figures released this Thursday by the event organisers GSMA. Those who passed through the MWC’s main venues at L’Hospitalet Gran Via and Fira de Montjuic were mostly senior executives, including 6,100 CEOs. The economic impact in Barcelona and its metropolitan area is estimated to reach €465 million and over 13,200 temporary jobs have been created due to the MWC. 2,300 international companies, which went beyond just the mobile phone industry, including firms from the automotive, financial and health sectors, presented their novelties at the world’s most important cell-phone and internet-related exhibition. 

The number of people registered on the unemployment lists in Catalonia in February stood at 452,342 people, 1,581 fewer than in January, according to the Spanish Ministry of Employment and Social Security. This February’s fall is the smallest registered for this month in the last 21 years. In annual terms, Catalonia has now listed 44 consecutive months of declining unemployment, since July 2013. Indeed, February has usually been a month with decreasing unemployment, except during the worst years of the economic crisis. The number of contracts registered in February stood at 222,369 units, the highest figure for the month of February since 2006. In the whole of Spain, unemployment also fell in February. There were 9,355 fewer unemployed than in January and the number of people without a job totalled 3,750,876.

4 Years From Now (4YFN), is the start-up business platform launched by the Mobile World Capital Barcelona that enables start-ups, investors and corporations to connect and launch new ventures together. During its opening this Monday within the Mobile World Congress, in Barcelona, Catalan Minister for Business and Knowledge, Jordi Baiget described it as “great showcase” and emphasised its growing influence. “It has become a reference point in Europe”, he said. Indeed, this year the 4YFN has seen its surface area multiplied by 8 in comparison to its first edition, three years ago. Thus, it has gathered together a record 600 start-ups and 700 investors. In line with this expansion, the 4YFN promotors announced that the platform will also be launched in San Francisco.

Catalan exports totalled €65.14 billion in 2016 and set a new record for the sixth consecutive year, according to data released by the Spanish Ministry for Economy and Competitiveness. The figure not only represents a 2% increase in comparison to last year but a higher growth than that registered in the whole of Spain (1.7%) and the Eurozone (0.17%). Thus, Catalonia continues to lead exports in the whole of Spain. This good trend is the result of “the persistent and permanent efforts of Catalan companies, which are amongst the most internationalised in our environs”, explained Catalan Secretary for Business and Competitiveness, Joan Aregio. The sectors which grew the most in 2016 in terms of exports were equipment goods (+10.4%), followed by chemical products (+1.3%). On the other hand, exports in the automotive sector fell by 0.4%.

The Catalan Government’s tax take rose by 8.3% in 2016, totalling 2.9 billion euros. More than half of this came from the real estate sector, which contributed 1.6 billion euros to the treasury due to the growth registered in both the execution of new mortgages and in the buying and selling of previously owned houses. The wealth tax also contributed to this 225.45 million euros, an increase compared to 2015, not only because the fee grew but also because there were more declarants in 2016 than in the previous years. The figures, which include the Catalan Tax Agency’s own taxes and those transferred by the Spanish state, include the new taxes applied in 2016 for the first time. In particular, the treasury benefited from the taxes applied to empty houses, which represented 11.49 million euros and the 2.99 million obtained by charging Co2 emissions produced by public aviation.  

The number of Catalan companies which will attend the 12th edition of the Mobile World Congress (MWC), to take place from the 27th of February to the 2nd of March in Barcelona will be higher than ever. There will be 105 Catalan businesses represented at the world’s largest event of the mobile and cell phone-related industries, exceeding for the first time the threshold of 100, explained Catalan Minister for Business and Knowledge, Jordi Baiget. 68 of these companies will be located in the Catalan Government’s pavilion, which will be set up at the centre of Fira de Barcelona. Barcelona’s Mayor, Ada Colau, emphasised the “good understanding” between the public administrations which share the organisation of the MWC: the Catalan Government, Barcelona’s City Hall and the Spanish Government.

The Valencian Association of Businessmen and ‘Cercle d’Economia’, the main Catalan economic forum open to businesspeople and academics organised a summit this Monday to urge the Spanish Government to build the Mediterranean Railway Corridor. “The main problems are the lack of political will”, stated Vicente Boluda, president of the Valencian Association of Businessmen. In a similar sense, ‘Cercle d’Economia’ President, Joan José Brugera, called for convincing politicians that “the Corridor is in Spain’s general interest, since it improves the competitiveness of the Mediterranean area”.The conference was attended bya representation of 300 businessmen from Catalonia and Valencia, who lamented the repeated delay in the corridor’s construction. The infrastructure, which is set to transport freight and passengers non-stop from Gibraltar to Central Europe, would connect the Spanish Mediterranean ports.