state

The political parties and the main civil society organisations that support Catalonia's independence from Spain have agreed that the Catalan Parliament will issue a formal declaration to start building a new state and launch a constituent process, which would be put to a citizen vote at a later stage, if they obtain a parliamentary majority in the September elections. They have been holding a series of talks over the past few weeks in order to agree on a road map that sets out the steps to follow in case pro-independence parties obtain an absolute majority in the next Catalan Parliament elections. These elections have been called early and are being presented as a 'de facto' referendum on independence by the parties supporting this option, since they are the only way to hold a legal vote on this issue after years of the Spanish Government's unilateral blocking attitude.

On Friday, the Spanish Police Force arrested 8 people in an operation against Jihadist terrorism. Six of the arrests were carried out in Catalonia (in Figueres, Malgrat de Mar, Manlleu, Piera, l'Hospitalet de Llobregat and Terrassa), while the remaining 2 were made in the provinces of Ávila and Ciudad Real. The detainees were allegedly spreading Islamic State propaganda, which was being co-ordinated from Syria and Iraq by the terrorist organisation. In addition, they may have also been in charge of recruiting people to fight in Syria and Iraq and to commit terrorist attacks in Spain. All 8 have Spanish nationality and 5 are of Moroccan origin. The 6 people arrested in Catalonia have been moved from Barcelona to the Madrid-based 'Audiencia Nacional' Court with 3 vans and 7 cars in order to testify and to be put under judicial custody.

The Catalan Parliament has finally approved the Catalan Government’s budget bill for 2015 and the complementary law on fiscal measures with the backing of the governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC. The CiU and the ERC introduced last-minute changes concerning the launching of state structures, such as Catalonia's own tax administration. These changes come after the Catalan Council for Constitutional Guarantees (CGE) warned that such state structures cannot go beyond Catalonia's current self-rule powers. The CiU and ERC want to build embryonic structures in order to develop them if a majority of citizens vote for independence in the next Catalan elections, which are to be transformed into a 'de facto' referendum. Opposition parties criticised the new budget for "consolidating" budget cuts and for developing state structures.

The Catalan Government’s Budget for 2015 includes some “unconstitutional” measures, according to the Council for Constitutional Guarantees (CGE), which is an advisory body issuing non-binding reports. The CGE has criticised a number of bill amendments developing some state structures, but not all of them. The body has highlighted the way the budget bill is to develop Catalonia’s own tax administration and its own competition authority, finding it to be at odds with the Spanish Constitution. However, the CGE does consider the way in which Catalonia’s own Social Security system would be developed (by launching the Agency of Social Protection) to respect the Constitution. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC have said they will modify the measures criticised and will develop the affected state structures in a similar way to the Social Security system.

A day after the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, announced his plan to further develop the so-called state structures before the 27 September elections, the leader of the left-wing Catalan independence party ERC, Oriol Junqueras, has once again requested to be part of the Executive and sit in Cabinet. Junqueras justified his request in order “to guarantee the indispensable state structures”, such as Catalonia’s own tax administration and Social Security system. The embryonic frame of such structures should be created before the next Catalan elections, which will be called early and will be transformed into a ‘de facto’ referendum on independence from Spain. On Tuesday, Mas had already ruled out the possibility of the ERC sitting in Government and, on Wednesday, the Catalan President stressed that the current Cabinet will only be in office for the next 6 months.

The conservative Spanish nationalist People’s Party (PP), which runs the Spanish Government, has appealed against the Catalan Executive’s 2015 budget bill, which will delay its definitive approval and implementation by up to one month. The new budget was supposed to be approved this week by the Catalan Parliament, after months of negotiations between the governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC. The new bill will increase social spending and also increase funds for Catalonia’s own tax administration and for the launch of a Catalan Social Security agency. The Catalan Government accused the PP of “parliamentary filibusterism” and warned them that the appeal “will not stop the [self-determination] process” nor the creation of “state structures”. However, it will damage families in need, as it will delay the implementation of new social programmes.

The European Commission has warned Spain that 6 Autonomous Communities, including Catalonia, should cancel their tax on large-sized shopping centres because it may represent indirect State aid benefiting smaller shops and therefore damaging free competition. The Catalan Minister for Business and Employment, Felip Puig, announced legal actions to defend this tax, which was validated by the Constitutional Court. Catalonia’s shopping model has a great presence of small and local shops, mostly run by families with a small number of employees. In order to protect this model and make it compatible with new shopping malls and large-sized international shops, in 2000 the Catalan Parliament created a tax on shops larger than 2,500 square metres. Currently, it is set at €17 per year per square metre. The revenue collected is devoted to actions promoting local retail.

The Irish low-cost company issued a statement in reply to the European Commission’s investigation into the marketing agreement between Ryanair and the Catalan airports of Girona-Costa Brava and Reus (near the Costa Daurada). A competitor of Ryanair at Barcelona El Prat Airport had filed a complaint in Brussels accusing the Irish airline of profiting from public grants that were violating EU competition regulations. On Wednesday, the European Commission announced the launch of an investigation, which “does not prejudge the outcome”. In its statement, Ryanair pointed out that the European Court of Justice has already issued a judgement in 2008 stating that marketing agreements with airports are not state aid.

The Catalan Government has created a Treasury Secretariat within its Finance Ministry, which will be in charge of managing revenue, with the objective of developing Catalonia’s own tax office. The creation of a treasury of its own would allow the Catalan Executive to collect all the taxes generated in Catalonia, as Navarra and the Basque Country have been doing for decades. It is one of the electoral promises of the governing Centre-Right Catalan Nationalist Coalition (CiU) and is also part of the parliamentary stability agreement reached with the Left-Wing Catalan Independence Party (ERC). A Catalan tax office collecting all the taxes is an historical claim of a large part of the Catalan society. However the Secretariat created is in line with the CiU’s strategy of creating state structures and it has been criticised by the pro-Spanish unity parties.

The study is funded by Catalan savings bank ‘la Caixa’ with data at Spanish-level. It reveals, contrary to xenophobic statements that immigrants bring more revenue to the state than the costs they generate. In addition, their presence also brings more services. “We came to the conclusion than the impact of immigration in the Welfare State is clearly positive”, states the coordinator of the study.

The Partnership for Advanced Computing in Europe (PRACE) aims to reinforce European leadership in the field. This EU network will be a key asset in European R&D. Catalonia will update its Mare Nostrum supercomputer to remain a PRACE?s key node.