Politics

The former leader of the European Union diplomacy and now an International Relations professor at the Barcelona-based ESADE business school, Javier Solana, stated that it is “difficult” to believe that such a measure could be implemented in Spain or Italy. Solana, who chairs the EsadeGeo Centre for Global Economy and Geopolitics, highlighted the fact that “it is an unprecedented decision to make all depositors pay” such a tax. According to Solana, this could create “insecurity” and it is “an unfair decision for honest money savers”, despite the measure targeting those who have manipulated Cyprus’ financial system.

Martin Schulz, the President of the European Parliament, while in Barcelona, has asked for a greater involvement by the European Union and its members in the Union for the Mediterranean (UfM), which has its headquarters in the Catalan Capital. This institution was supposed to be essential in the EU’s foreign relations, building a Euro-Mediterranean cooperation space. However, the reality is that since it was founded in 2008 almost no projects have been developed and very few funds have been allocated. The Israel-Palestine conflict and the institutional instability of the Arab Spring are one cause of the paralysis of the UfM, but the lack of engagement of the European Union is also a contributing factor.

Catalonia’s Supreme Court (TSJC) has announced the indictment of Daniel Fernández, a Member of the Catalan Parliament and Organisation Secretary in the Catalan Socialist Party (PSC). Fernández has resigned from his party and Parliamentary positions, but he will continue to be an MP while waiting to find out whether he will go on trial in the end. The High Court believed there to be signs that Fernández could have committed a felony of influence peddling by participating in the irregular hiring process of a manager in one of Greater Barcelona’s municipalities. The anti-corruption prosecutor and the judges investigating the so-called ‘Mercuri’ case, dealing with municipal corruption in Greater Barcelona mostly affecting members of the PSC, asked for Fernández’s indictment to the TSJC since he is an MP.

The Catalan Finance Minister, Andreu Mas-Colell has announced that the Catalan Government had a public debt of €50,948 million on the 31st of December, 2012. Catalonia’s debt has increased by €16 billion in only 2 years due to the financial crisis. Furthermore, in 2013, the Catalan Government will have to pay €2.2 billion in interest on the debts – equivalent to 8% of its budget and 1% of Catalonia’s annual GDP. Catalonia has been a net contributor to the European Union for decades and has been paying around 8.5% of its annual GDP – equivalent to €17 billion – every year for services and infrastructure in the rest of Spain. Despite this fact, the Catalan Government does not receive enough money from the Spanish Executive, which raises most of the taxes and distributes revenue among Autonomous Communities.

The Catalan Parliament has approved the same declaration that the Spanish Parliament rejected 2 weeks ago with 104 votes out of the 135 MPs. The text urges the Spanish and Catalan governments to talk and agree on the organisation of a legal self-determination vote in Catalonia. The Catalan Socialist Party (PSC) presented the proposal, which also received the votes from the Centre-Right Catalan Nationalist Coalition (CiU) – which runs the Catalan Executive, the Left-Wing Catalan Independence Party (ERC) and the Catalan Green Socialist and Communist Coalition (ICV-EUiA). The radical left-wing and independence party (CUP) abstained. The People’s Party (PP), which runs the Spanish Government, and the anti-Catalan nationalism Ciutadans (C’s) opposed the vote.

A few hours earlier, the Swiss bank Lombard Odier stated that the Catalan presidents Artur Mas and Jordi Pujol do not have any relationship with the company. The Spanish nationalist newspaper ‘El Mundo’ published a report 9 days before the Catalan elections, with the official stamp of the Spanish Police on it, accusing the incumbent President of the Catalan Government, and candidate for re-election from the Centre-Right Catalan Nationalist Coalition (CiU), Artur Mas, of having secret accounts in Switzerland. The fake report also incriminated Mas’ family, the former Catalan President Jordi Pujol and two of Pujol’s sons. The report completely altered the election campaign. Now, four months after the report was issued, the Catalan Government has demanded a public rectification since some Spanish Ministers and leading members of the People’s Party validated the report at the time.

Andreu Mas-Colell, the Catalan Government’s Finance Minister, emphasised that a 0.7% deficit objective means implementing an additional budget adjustment of €4.4 billion. This amount represents around 15% of the Catalan Executive’s budget for last year, which had already been reduced over the previous two years. Furthermore, expected revenue will decrease by 1% despite increases in tax, debt interest will grow by €300 million and the amount of spread payments will also increase by €150 million. In such circumstances a €4.4 billion one-year adjustment would blow up public services in Catalonia. Therefore, Mas-Colell urged the Spanish Government to find an agreement, as otherwise no one wants PM Rajoy to act “as the viceroy of Catalonia”.

Earlier this week the Director of the Public Prosecution Office of Catalonia, Martín Rodríguez Sol, was pushed to resign by his boss at a Spanish level, who is directly appointed by Spain’s Government. Rodríguez Sol said in an interview that it was “legitimate” to “allow the people” to decide on their collective future regarding Catalonia’s self-determination process. However, he emphasised that he was not supporting an independence referendum as such because “it does not fit into the current legal framework”, but he suggested that a “legal vote” could be held with the appropriate question being asked. He also stated that legal frameworks should be connected to social realities and should have the option to be changed. On Thursday six members of the European Parliament, representing four Catalan parties, filed a question to the European Commission about the case.

Multinational companies, railway operators, port authorities and government representatives met in the European Parliament to demand a boost of goods transportation by rail in Europe. They are pushing for the use of longer and heavier trains, able to transport more goods at a lower cost, with the consequent increase in competitiveness. These trains would circulate along specific corridors, such as the Mediterranean Railway Corridor, which will link the Gibraltar area with Central and Northern Europe passing through Spain’s Mediterranean ports and main industrial centres. The lobby organising the event, FERRMED, complained about the absence of representatives from the Spanish Government’s train operators.

The boss of all public prosecutors in Spain, Eduardo Torres-Dulce – appointed by the Spanish Government – announced on Monday that he is starting the process to dismiss his subordinate, Martín Rodríguez Sol, for having said in an interview on Sunday it was “legitimate” that a majority of citizens ask to vote on Catalonia’s political future, although “within the legal framework”. Rodríguez Sol believes that it is not possible to organise an independence referendum as such although he said that with the appropriate question, a legal self-determination vote could be held. He also stated that the legal framework should be adapted to social changes. The Catalan President, Artur Mas, has accused the Spanish Government “of having little democratic sensibility”. In addition, Mas reminded everybody that last week another army general threatened with a military intervention in Catalonia “and nothing happened” but if an attorney general says that people should “express themselves within the legal framework”, he is fired.

The number of people unemployed and registered as such by the end of February at the Catalan Public Employment Service (SOC) increased by 3,359 people compared to the January figures. This is the lowest unemployment increase registered in the month of February in the last six years. In total, there were 661,176 people in Catalonia who were without a job and were looking for a new one. This sets a new historical record, with 23,228 more people unemployed than a year ago, representing a 3.62% increase. In the whole of Spain, unemployment increased by 59,444 people in February and for the first time the number of people officially registered as jobseekers topped 5 million individuals. Within the last 12 months, unemployment in Spain increased by 328,124 individuals, 6.96% more than those registered in February 2012.

The Spanish Government has presented its project to approve an External Action Law aiming to “centralise services” and to have the Autonomous Communities’ external action “coordinated and subordinated” to the principles and objectives of the Spanish Foreign Affairs Ministry. The Spanish Foreign Affairs Minister, José Manuel García-Margallo, has “invited” the Autonomous Communities to integrate their teams into those of the Spanish embassies. However, he also recognised that many Spanish embassies and consulates lack business services to assist companies and attract foreign investment. The Catalan Government’s offices abroad are mostly focused on these economic objectives.

The President of the Catalan Government, Artur Mas, accused the Spanish Government of “not having the true will to talk” about Catalonia’s self-determination claims, backed by democratically-expressed ballots. After the weekly Cabinet Meeting, the Deputy Prime Minister, Soraya Sáenz de Santamaría, confirmed that the Spanish Government will take the Catalan Parliament’s declaration, which states that the Catalan people are sovereign to freely and democratically decide on their collective future and therefore organise a self-determination vote, to the Constitutional Court. The Spanish Government justified its decision by stating that the declaration – with no direct legal impact – might have legal consequences and wants the Court to “clarify that the Catalan people are not sovereign”.

The Catalan Government has reduced its deficit by half over the last year, dropping from a 4.02% figure to a deficit of only 1.96%. However, despite the significant reduction, the figure is still above the 1.5% target unilaterally imposed by the Spanish Government. The Catalan Executive had been warning the Spanish Government that a 1.5% target was not realistic, as it did not relate to its spending responsibilities managing the basic Welfare State services. The Autonomous Communities had a total deficit of 1.73%. Spain as a whole ended 2012 with a 6.74% deficit, according to the Spanish Finance Ministry, over the 6.3% target imposed by Brussels. The Spanish Government posted a final deficit of 3.83%; Social Security – managed by the Spanish Government – had a 0.96% deficit and local governments a deficit of 0.2%. Barcelona City Council ended up with a budget surplus of €117 million.

For the first time since 1982, the Catalan Socialist Party (PSC) has voted differently to the Spanish Socialist Party (PSOE), to which is federated. The PSOE is opposing Catalonia’s self-determination right and voted against the petitions urging the Spanish Government to engage in talks with the Catalan Executive in order to allow the organisation of a self-determination referendum in Catalonia. The Catalan Socialists oppose Catalonia’s independence from Spain but they back Catalonia’s right to self-determination and thus they supported the petitions. As an anecdote, the PSC MP Carme Chacón refused to back the petitions, as she is in the running as a candidate to lead the PSOE. The petitions were finally rejected by 78% of the Spanish Parliament, mostly from the People’s Party – which runs the Spanish Government and holds an absolute majority in the Chamber – and the PSOE, apart from the PSC.