Politics

The Dutch newspaper NRC Handelsblad has published an interview with the President of the Catalan Government, Artur Mas. Mas states that “Catalonia’s intervention by Spain would be unthinkable” and “unfair, as no government has done as much as Catalonia's to adjust the economic situation”. Furthermore, he adds that “people’s reaction [against such an intervention] would be very strong”. NRC explains the austerity measures implemented by the Catalan Government to reduce its deficit, such as the drug prescription fee or public employee salary reduction. Furthermore, Mas complained that Spain’s Autonomies model has “decentralised spending but not revenue”; “we want to collect our taxes”, he affirmed, being another “state within a federal Europe”, contributing to regional solidarity.

The Catalan Government initially put €2.06 billion in one-year and two-year bonds on the market, but considering the high demand, it increased the offer up to €2.37 billion. 102,269 demands have been received.

The Spanish Finance Minister, Cristóbal Montoro, blamed the Autonomies and town halls for Spain’s public deficit. Montoro stated that the Spanish Government is meeting the deficit objective for 2012 with the results from the first quarter. However, Catalan MPs reminded Montoro that he is refusing to pay the money it owes Catalan institutions and that with this strategy he transfers the blame for the deficit by not transferring the funds. The Catalan Government directly accused the Spanish Executive for their “massive lie”. According to internal studies from the Catalan Government, the Spanish Executive made incorrect calculations by saying the Autonomies could save €10 billion in healthcare and education with last week’s measures.

In an interview with the Catalan Public Television Broadcaster, the Catalan President and leader of the Centre-Right Catalan Nationalist Coalition (CiU) recognised that the Spanish Government could intervene the Catalan Government. “It could happen, I won't deny it”, he said. Furthermore, he warned that “the mistrust level will be very high” if the Spanish Government does not pay the money it owes the Catalan Executive. Mas said that “if Madrid wants to intervene Catalonia’s self-government”, he would call early elections. In addition, he said that further budget cuts will be needed.

The day after the Spanish Government imposed increasing the price citizens pay for medication, the Spokesperson for the Catalan Government confirmed that Catalonia will maintain the €1 drug prescription fee. The Catalan Health Minister had said earlier they would study if the drug prescription fee would be implemented. The main doctors union and Left-Wing opposition parties asked the Catalan Government to eliminate the drug prescription fee, because it would make Catalan citizens pay more for their medication than the rest of Spanish citizens.

The Spanish Minister of Health met with her counterparts from the Autonomous Communities to discuss measures to reduce healthcare spending by €7 billion. Pensioners will have to pay for 10% of their medication, with a maximum of between €8 and €18 per month depending on their income. Furthermore, people with a job will have to pay for 40% to 60% of the price, depending on their income. Besides, the number of pills will better adapt to prescriptions, drug purchases will be centralised and generic drug prescriptions will be fostered. Catalonia might not eliminate the drug prescription fee although the final decision will be taken once the impact of measures is fully studied. The Catalan Minister also emphasised that the main problem in Catalonia is “the system’s funding” and not expenditure, which cannot be further reduced.

The Catalan Government and many town halls throughout Catalonia have applied for credit funds facilitated by the Spanish Government to clear out all their arrears from 2011. The Spanish Government, together with several banks, have put €35 billion on the table for long-term credits for the Autonomies and municipalities to get rid of all their arrears with suppliers. The credit is to be returned in 10 years time, and they have to make no payments in the first two years. The Catalan Government presented 268,489 bills totalling €1.98 billion, corresponding to all its services as well as public companies and agencies. They represent 11.48% from the total €17.26 billion applied by the Autonomies.

The Spanish Minister for Education met with his counterparts from the Autonomous Communities and imposed 6 measures that must be adopted to save €3 billion. The Catalan Minister considers that three of the measures might invade powers managed by the Autonomies, and therefore the Spanish Government might be ruling beyond its jurisdiction. The Catalan Government will study them and does not rule out bringing the Spanish Government to the Constitutional Court. Nonetheless, the Spanish Minister reminded that, before a judge says the contrary, the measures are still obligatory. Besides, the Catalan Minister also emphasised the previous austerity efforts made by the Catalan Government also in Education, and the Spanish Ministry’s “lack of knowledge” about them.

Aguirre, President of Madrid's regional government, asked to return healthcare, justice administration and education powers, which are managed by the Autonomous Communities, back to the Central Government. Prime Minister Rajoy, the leader of the People’s Party (PP) –Aguirre’s party–, stated that a debate about the Autonomous Community model is “out of the question”. Furthermore the PP’s Catalan leader defended the current model, as Catalonia “exerts its self-government as established in the Constitution”. Besides, the Catalan President told Aguirre to return the powers she does not want to manage, but to leave Catalonia aside. He added that the current model was designed “to dilute Catalonia and the Basque Country’s self-governance claims”.

This advisory body dependent on the Catalan Government affirms that two aspects of the Labour Reform Law, recently approved by the Spanish Government, go against the Spanish Constitution. Furthermore, the report also highlights three elements that invade the Catalan Government’s jurisdiction. The four Left-Wing Catalan parties that requested the assessment one month ago are pushing for the reform to be brought to the Constitutional Court. CiU, who runs the Catalan Government, hopes to modify these aspects through parliamentary negotiations.

CiU stated that it will be “absurd” that they support the current budget proposal in the Spanish Parliament although they are open to negotiate and modify it. Furthermore, CiU “does not rule out the possibility of taking the Spanish Government to court” for ignoring the current legislation. The Socialists directly considered the budget proposal “to mistreat Catalonia”. The Green Socialists ask for a “common Catalan front” against the budget. The Catalan Independence parties (ERC and SI) say the budget plunders Catalonia. The anti-Catalan nationalists stated the budget wants to please Merkel. The only party supporting the budget was the PP, which runs the Spanish Government.

The Spanish Government will not respect the territorial funding scheme, approved by the Spanish Parliament and in a referendum, as it will only invest 11% of its regional spending in Catalonia. According to the current legislation, in order to compensate for an historical lack of infrastructural investment in Catalonia recognised by the Spanish Parliament and the Constitutional Court, the Spanish Government must invest at least the equivalent of Catalonia’s economic weight within Spain, which represents 18.7% in 2012. Furthermore it does not include €1 billion pending from 2008 and 2009, to which Catalonia is legally entitled.

The European Liberals in the European Parliament have organised an international summit in Barcelona to discuss the Arab Spring within the framework of the Union for the Mediterranean, which has its headquarters in the Catalan capital. At the meeting, the President of the Catalan Government, Artur Mas, who is also the leader of the Catalan Liberal Party (CDC), asked the EU “not to turn its back on emerging democracies in the southern Mediterranean”. Furthermore, Mas emphasised the need to create jobs in the region. The European Liberals also urged the international community to take immediate action in Syria.

The General Strike on March 29th ended without significant changes in the Spanish Government’s Labour Reform, but with a clear acknowledgement that there is growing social anger. The strike was unevenly supported in Catalonia. Unions talked about sector strike participation ranging between 97% and 57% and the Catalan Government about strike participations ranging between 24% and 10%. Minimum services worked as planned, without any significant incidents. Demonstrations took place in the main Catalan cities, with the largest in Barcelona. Isolated violent incidents were the only negative parts of what was a relatively calm day.

The Spanish Minister for the Economy, Luís de Guindos, announced in Barcelona the future creation of the so-called ‘hispanobonds’, common bonds issued by the Autonomous Communities and backed by the Spanish Treasury. The objective is to reduce high interests rates, and thus the financial costs that the Autonomous Communities have to pay when they turn towards financial markets to get liquidity. The Catalan Finance Minister proposed the original idea several few weeks ago.