Politics

The participants to the so-called National Alliance for the Self-Determination Right have met for the first time, bringing together almost 50 entities, including political parties, business associations, trade unions, social organisations and cultural institutions. This transversal initiative gathering together a wide part of Catalan society aims to reach an internal consensus on how to proceed in order to allow Catalans to vote on their collective future. Attendees agreed to ask the former President of the Catalan Parliament, Joan Rigol, to draft a text expressing the “common denominators” of the participants. In addition, the President of the Catalan Government, Artur Mas, will send a letter to the Spanish Prime Minister, Mariano Rajoy, making a formal petition for the organisation of a self-determination vote in Catalonia.

The Catalan Government will continue to occupy the facilities as a tenant, annually paying €16.2 million in rent over the next 20 years. The decision to sell Catalan Government properties had been taken to ease the difficult financial situation and obtain liquidity. The initiative is part of the austerity measures adopted to reduce the public deficit and increase revenue. Taking this last sale into account, the Catalan Government will have sold 17 properties for a total of €266 million since 2012. The Catalan Minister for the Presidency, Francesc Homs, emphasised that the revenue generated by these sales will allow the Government to undertake fewer budget cuts.

On Friday, the Spanish Government approved a €37.7 billion reform of Spain’s public sector which fosters the elimination of Autonomous Community bodies considered to be “redundant”. Instead of directly obliging the Autonomous Communities to eliminate them – which might be very tricky legally speaking, the Spanish Executive will link their suppression to the deficit targets allowed to the regional governments and the funds provided. However, in the case of Catalonia, most of the bodies included in the reform are recognised by Catalonia’s main law, approved in 2006 by the Spanish Parliament and through a binding referendum. The Catalan Government and most of the political parties are accusing the Spanish Executive of trying to recentralise Spain. In addition, the Catalan President said that unfortunately Madrid “teaches lessons” but “does not do its homework” and eliminates Ministries without competences.

According to an opinion poll from the Catalan Polling Centre (CEO), the Catalan political landscape would change, since the Left-Wing Catalan Independence Party (ERC) would would become the largest force in the Catalan Parliament after doubling the number of its MPs compared to the electoral results from last November. Meanwhile, the Centre-Right Catalan Nationalist Coalition (CiU), which has been running the Catalan Government since 2010, would continue to lose support. However, parties supporting Catalonia’s independence increase their total support while the number of those defending Spain’s unity drops. The CEO thinks the data show that over the last 9 months, the support for independence remains “stable” in a hypothetical referendum, ranging between 54% and 57%. However, those opposing independence grew from 20.7% to 23.4%, while the number of undecided citizens decreased to 15%.

The Wealth Transfer Tax, which is levied on sales of second-hand housing units and any other used real estate, will be raised from 8% to 10% as from the 1st of August. The Catalan Government expects to earn an additional €50 million in 2013 and €150 million in 2014. The Catalan Finance Minister, Andreu Mas-Colell, argued that the rise in the tax rate is equivalent to the VAT charged on sales of new housing units and that both taxes should be “parallel”. He also added that other Autonomous Communities had previously raised this tax to similar levels.

After a four-year investigation, the Public Prosecution Office – which comes under the jurisdiction of the Spanish Ministry of Justice – is accusing Convergència Democràtica de Catalunya (CDC), the main force within the two-party coalition Convergència i Unió (CiU) which runs the Catalan Government, of having received €6.6 million in “illegal commission” from the construction company Ferrovial. CDC immediately denied the accusations, stating they have never received hidden money, not the party or its think-tank, the CatDem Foundation. In addition, they lamented the fact that the Public Prosecutor is basing the accusation “on speculations and mere conjecture” and that “it is not backed by any evidence”.

According to the current legislation, the Spanish Government has to invest 18.9% of its total transport infrastructure budget in Catalonia between 2007 and 2013 in order to compensate for an historical lack of such investments. However, according to the Spanish Transport Ministry’s budget execution reports and the projections made by the Chamber, the Spanish Government is far from honouring this legal obligation. Not only have investments in Catalonia not increased in relative terms, but they have been reduced to a “historical minimum”. While the planned budget for transport investments has been reduced by an average of 36% throughout Spain due to the economic crisis, in Catalonia it has dropped by 50%. Furthermore, 87% of the planned budget was executed throughout Spain, while in Catalonia Madrid only executed 68% of it.

The British Prime Minister David Cameron answered a question referring to Scotland’s self-determination process and he indirectly compared it to Catalonia’s situation. He stated that he “doesn’t believe” that trying “to ignore these questions of nationality, independence, identity” is the right way. Cameron thinks “it’s right to make your arguments, take them on and then you let the people decide”. However, without being asked about it, he linked it to the Catalan case by adding he “would never presume to tell people in Spain how to meet these challenges themselves”. He concluded by saying that “it’s a matter for the Spanish Government and the Spanish Prime Minister” to decide how to handle the situation.

Artur Mas, President of the Catalan Government, presented the Government Plan for 2013-2016 on Tuesday, emphasising that he aims to complete the four-year office term regardless of whether Catalonia’s self-determination vote is finally held in 2014, as the governing Centre-Right Catalan Nationalist Coalition (CiU) planned with the Left-Wing Catalan Independence Party (ERC). With the Plan, Mas has set 77 objectives in seven different areas, aiming to reaffirm political leadership and show the Catalan Government’s actions in a wide range of areas such as economic recovery, job creation, public services, environment protection, etc. Mas also asked the ERC and the Catalan Socialists (PSC) to sit in the Catalan Government. All the opposition parties except the ERC criticised the Plan.

In an interview with ACN, the Head of the EU Foreign Policy Unit of the Centre for European Policy Studies (CEPS), Steven Blockmans argued that “the European Union or the United Nations could play this role” if “both parties, including Madrid, voluntarily accept it”. Besides, Blockmans explained that Catalonia’s and Scotland’s self-determination processes and the possibility that they become independent states “is being debated” in Brussels circles, and it is even mentioned “often”. In addition, he also stated that if Madrid agrees, “a summit would be enough” to take “the political decision” to allow an independent Catalonia to become an EU Member State.

By the end of last month, 14,829 fewer people were registered at the Catalan Public Employment Service, which leaves the total number of registered jobseekers at 642,166 individuals. This represents a 2.26% drop compared to the figures from April, meaning that registered unemployment decreased in Catalonia for the last three consecutive months. May is a month when unemployment tends to drop thanks to temporary summer jobs, mostly related to the tourism industry. In the whole of Spain, unemployment decreased by 1.97% in May, with 98,265 fewer people registered as unemployed. This leaves the total number of people registered as being without a job and looking for one at 4,890,928 individuals in Spain. The Catalan Government welcomes “the positive horizon” shown by the May figures but it considered them to be “insufficient” as yet.

The agreement was previously discussed with the Spanish Executive and it respects the Catalan Government’s external action power as described in Catalonia’s main law. The President of the Catalan Government, Artur Mas, signed the agreement with UNESCO’s General Director, Irina Bokova. The new framework allows Catalonia to have its “singularity” represented in the international organisation, although not permanently. Catalan representatives will be present in specific meetings and projects, separate from the Spanish delegation. “It is more than what we already have”, stated Mas. The Catalan President was one of the speakers at the Opening Plenary Session of UNESCO’s Global Conference, which is being held in Paris from the 3rd to the 5th of June.

David Gardner argues in an interview with the CNA that politicians must find “political and legal ways for citizens to be able to express their will democratically”. The Financial Times International expert says that both Catalonia and Spain should agree to have a referendum and warns that “no one” can simply ban it. This journalist thinks it’s unlikely for Catalonia to become an independent country anytime soon but admits that most of the problems come from Madrid avoiding any kind of negotiation. “But they either negotiate or Spain will face a constitutional crisis”, he warns.

The Spanish Constitutional Court has lifted the temporary suspension of the Catalan Government’s tax on total bank deposits while it is waiting to issue a sentence on the measure. The Spanish Government took Catalonia’s tax on bank deposits, the drug prescription fee and the new judicial taxes to the Court. The Constitutional Court accepted Madrid’s appeal in January and temporarily suspended the implementation of the three measures for five months. After the period is over, the Court believes that, taking into account the need to reduce public deficit, the Catalan Government can now implement the tax on banks, while the magistrates agree on a definitive sentence. However, the Court has extended the suspension on the judicial and drug prescription fees.

On Tuesday, the Catalan Government posted the so-called fiscal balances for 2010, showing the difference between the money paid by Catalans in taxes and fees to the Spanish Government and what comes back in form of funds, services and infrastructure. Using the monetary flow formula, Catalonia had a fiscal deficit of €16.54 billion, representing 8.5% of its GDP. Using the benefit formula, the fiscal deficit represents 5.8% of the Catalan GDP (€11.26 billion). The Catalan Finance Minister, Andreu Mas-Colell, stated that both formulas “are complementary” but he found the monetary flow one to be closer to the reality. The figures are similar to the results from previous years as well as to the study published in 2008 by the Spanish Finance Ministry with data from 2005. In the last 25 years, Catalonia has given away 8.1% of its GDP each year.