Business

“The EU expects that the Midcat will be built by 2020”, stated EU Commissioner for Energy and Climate Action, Miguel Arias Cañete. He made this statement this Monday during the ‘Natural gas and the energy security of Europe’ seminar, organised by Gas Natural Fenosa. The Midcat pipeline is set to be built through the Catalan Pyrenees, linking the Iberian Peninsula with French and Central European networks and aims to reduce Europe's dependency on Russian gas by 40%. According to Cañete the project has a budget of 470 million euros, from which 170 million will have to be paid by Spain. Catalan Minister for Business and Employment, Felip Puig “lamented” the delay in this strategic infrastructure and attributed it to “the lack of enthusiasm” of the French government.

This September 6,881 people lost their job, which raises the number of unemployed in Catalonia to 513,187. This figure represents the second month in a row with an increase in the unemployment rate, according to data published by the Spanish Ministry of Employment and Social Security. However, there are 62,625 less unemployed people than in September last year and there have been 27 consecutive months with a lower unemployment rate in comparison to 2014. The number of unemployed in the whole of Spain was 4,094,000 people.

Pro-independence parties have won an overall majority in the Catalan election. The main pro-independence coalition, ‘Junts pel Sí’ (‘Together for Yes’) obtained 39.6% of vote and won 62, while the far-left pro-independence CUP secured 10 members of parliament. Together, they have an overall majority of 72 MPs in the 135-seats Catalan Parliament. President Mas, who ran fourth on the list, highlighted the plebiscitary nature of the elections and demanded “respect” for “the victory of Catalonia, the victory of yes”. Turnout in the election has hit a record high, with 77.4%.

During the second trimester of 2015, foreign investment in Catalonia grew by some 422%, reaching €1,302 million. “We have grown more than ever and we have become a point of reference in Europe” stated Catalan Minister for Business and Employment, Felip Puig. “These results show the world how diversified and solid our economy is” he added. During the first trimester this year, Catalonia was the leading region in Continental Western Europe in terms of investment, both in total amount of investments attracted and in the amount of jobs generated. This growth is much higher than the Spanish average; foreign investment in Spain in the second trimester of 2015 was only 73% higher than that recorded during the same period last year. 

Catalan exports grew 7.4% in July and exceeded the €6,000 million barrier for the first time. The total figure was €6,086.30 million and the 4 regions in Catalonia (Barcelona, Girona, Tarragona and Lleida), all obtained positive results, according to the Spanish Ministry of Economy and Competitiveness. Sales increased in the leading export sectors, which involve chemical, automotive and capital goods, with the automotive sector recording the highest increase, up 18.2% compared to last July. Since the beginning of this year, every month has recorded the best performance in export volume and if this trend keeps up, 2015 will be a  record year. In Spain as a whole, exports in July were worth 148,000 million euros, the best month ever recorded.

The Spanish Bank Association (AEB in Spanish) and the Spanish Confederation of Saving Banks (CECA in Spanish) warned about the “risks” of Catalonia’s independence. In an official announcement made this Friday, both associations assured that all banks with a presence in Catalonia “would face severe problems of judicial insecurity” in the event of a Unilateral Declaration of Independence after the 27-S elections. They outlined that “any political decision which would imply breaking the rules in force” would result in “exclusion from the EU and the Eurozone” for Catalonia. The Catalan Finance Minister, Andreu Mas-Colell, described the Spanish government as “being irresponsible” for pushing the banking sector to be against the independence of Catalonia. He regretted that such “a delicate sector” was used as an “artillery weapon”. 

The ‘Cercle d'Economia’, a Catalan economic forum open to businesspeople and academics, are in favour of a “legal and agreed” consultation if pro-independence groups have “clear” support in the 27-S elections. The forum, which is against a Unilateral Declaration of Independence (‘DUI’ in Catalan), stated that allowing the consultation is a “democratic principle” inherent in the Spanish Constitution. The Cercle d'Economia presented its views in an opinion piece which had to be redrafted since the first draft presented on Monday by the president of the organisation, Anton Costas, created differences between board members.

Catalan company Recam Làser, which specialises in laser cutting, is responsible for making the torch for the 2016 Olympic Games in Rio de Janeiro. The plant has already developed a final prototype and will start making torches this October and the 15,000 units must be delivered early next year. 800 torches will start the tour in Greece and the rest will go directly to Brazil. The torch is made out of recycled aluminium and weighs 1.5 kilos. When lit, it extends by a few centimetres and shows the colours of the flag of Brazil. Each torch will cost around 400 dollars. “This order will project us as the company which manufactured the torch in Rio 2016,” said president and founder of  Recam Làser, Pere Barrios.

The activity of cruises in ‘Port de Barcelona’ provides 413.2 million euros to Catalonia’s GDP and each cruise generates on average a turnover of one million euros, according to a study from the University of Barcelona (UB) released this Tuesday. The total turnover, including the expenses of passengers, shipping companies and crews, amounts to 796 million euros in both direct and indirect expenses. The study also shows that the activity of these cruises generates around 7,000 jobs, besides the other positive effects on the Catalan economy such as increased demand at Barcelona’s main airport, ‘Aeroport del Prat’. The Catalan capital benefits the most from the cruise activity, as 75% of the revenues stay in Barcelona.

This is the highest growth registered in Catalonia since 2007, when prices increased by 6.5% and comes after five consecutive months of rising house prices, according to figures released on Tuesday by the Spanish Statistics Institute (INE). Prices rose more in Catalonia than in Spain as a whole, where the increase was around 4%. The number of buying and selling transactions reached 2010 levels, with the previously owned market registering the highest growth. 

All Catalonia’s employers’ associations, with the exception of ‘Foment del Treball’, and every chamber of commerce have united behind Catalonia’s right to vote and expressed on Thursday their wish to “unconditionally support” the result of the upcoming elections on the 27^th of September. The president of the employers’ association CECOT, Antoni Abad, said that “the right to decide is a structural element of a democracy”, adding that “we must re-establish Spain or found a new state”. The businessmen handed a copy of ‘Manifest del Far’ - a document signed in 2014, in which they expressed their commitment to Catalonia’s process of sovereignty - to the President of the Catalan Parliament, Núria de Gispert. She thanked the employers for “such a necessary” event and emphasised that “the time of ambiguity is over”. 

Registered unemployment in Catalonia rose by 4,521 people during the month of August and totalled 506,306 according to statistics published on Wednesday by the Spanish Ministry of Employment and Social Security. However, the number of unemployed decreased by 11.43% compared to August 2014, which makes this month the best August since 1999. The monthly decline was caused mainly by the increase in unemployment in the services sector, which is to be expected considering that August marks the end of many seasonal contracts. The number of unemployed also increased in August in Spain as a whole, by 0.54%. The Spanish annual rate, however, was slightly less positive than the Catalan one, with unemployment in August decreasing by 8.13% in comparison with the same month last year. Overall, there are 21,679 more unemployed this month and the total number of people jobless in Spain is 4,067,955.

The economic crisis might be over in GDP terms, with growth in both Spain and Catalonia, but its social and labour effects still persist. That is according to the two main unions in Catalonia, UGT and CCOO, that warned on Wednesday that much still needs to be done. A report by UGT has suggested that Catalonia needs to create 400,000 new jobs to reach the levels of employment that it had before the economic crisis. The report, which analyses the situation between 2007 and 2015, regrets the fact that there are now more temporary and part-time contracts. The CCOO has said that new street mobilisations will be needed this autumn in order to ask for better working conditions for employees in the country.

The Catalan capital attracts the interest of some of the most prestigious hotel chains in the world, and has more 5 star establishments than London or Paris. Up to 13% of tourist accommodation in Barcelona is provided by luxury or 5 star establishments, a percentage that is 10% in the British capital and 7.5% in the French one. The new mayor of Barcelona, Ada Colau, introduced in July a one-year moratorium on new tourist accommodation to regulate the influx of visitors to the city that has affected eight of the eleven new luxury projects in Barcelona. However, neither the number of beds on offer nor the ban have reduced interest from international businesspeople, whom continue to see the Catalan capital as a “very attractive” place to invest, according to experts.

The Catalan bank Sabadell has completed the process of compulsory acquisition of all TSB Banking Group (TSB) shares, thereby taking ownership of 100% of this British entity’s share capital. The move completes the takeover started last spring, when TSB accepted the 1.7bn-pound offer made by Banc Sabadell. Through buying TSB, Banc Sabadell has expanded its international presence, with its percentage of foreign assets growing from 5% to 22%. TSB has 631 branches, 4.6 million customers and 8,600 employees in the United Kingdom.