Experts in economics and regional fiscal redistribution concluded at a conference in London that the Spanish Autonomous Communities’ expenditure like Catalonia’s is not to be blamed for the downgrading of Spanish debt. They stated that the Catalan Government can not only be “an expenditure agency” and that it needs total control over its revenues and budget.
After the Spanish Governments announcement to reduce the price of local train tickets by 5% with the aim of fostering public transportation to save fuel, the Catalan Government, which manages the service in Catalonia, quantified in 26 million euros its loss in 1 year. Therefore, the Catalan Executive refused to pay for the measure. The Spanish Government will pay 6.75 million euros for 3 months of the measure.
Ryanair’s CEO, Michael O’Leary urges the Catalan Government to pay 11,5 million euros to the airline if it wants Girona’s airport to see all its Ryanair flights back from October onwards. O’Leary says that the Irish company cancelled 28% of its routes from Girona for the Spring/Summer season due to the “lack of commitment” from the new Catalan executive.
The President of the European Commission José Manuel Barroso met with the President of the Catalan Government Artur Mas in Brussels. Barroso recognised the Catalan Government's efforts to reduce public deficit. Mas emphasised the importance of making Catalan an official EU language. Mas was accompanied by the Christian-Democrat Josep Antoni Duran i Lleida and the new Catalan Delegate to the European Union, Joan Prat.
With the aim of fostering vocational training in Catalonia, the Catalan Government approved a decree to modify it today. All students will have to learn foreign languages. Combining studies and a job will be easier. Programmes’ curriculum will be adapted to sector needs and student requirements.
Spain saw 2010 end with 9.24% of public deficit; 4.97% corresponds to the Spanish Government, 3.39% to the autonomous communities and 0.64% to the local administrations. According to the Spanish Government, half of the autonomous communities saw the year come to an end far away from the objective of 2.4% - Catalonia included. The Catalan Government emphasised that the Spanish Government cut down the revenues of the autonomous communities.
The Spanish Government gave eight autonomous communities the green light to issue a fixed amount of new debt in order to refinance old loans. With this, Catalonia will be able to issue new debt of 1,866 million euros. However, 1,090 million of this will be used on old healthcare payments from 2006.
Artur Mas, the President of the Catalan Government, met with the “State Minister” of the Moroccan Government, Mohamed El-Yazghi, who acts as a deputy prime minister. Mas recommended that Morocco build a pseudo-federal model, as was done in Spain, giving the Western Sahara some degree of autonomy.
“We are not a peripheral region of the Iberian Peninsular, we are Mediterranean people very committed to Europe”, stated Artur Mas, President of the Catalan Government. Mas met with all the consular corps in Barcelona, which is one of the four non-capital cities with the most consulates in the world.
The Spanish diplomat Juan Prat will become the next Catalan Delegate to the European Union, representing the Catalan Government’s interests in Brussels. Prat was the Spanish Ambassador to The Netherlands and used to be the Ambassador to NATO with former PM José Maria Aznar. He also served as the European Commission’s Director General for External Relations. Besides, Barroso and Mas will meet on the 3rd of March.
The low-cost airline Ryanair is cutting 28% of its routes from Girona airport and not replacing them with routes from other Catalan airpots. Although Ryanair promised to stay in Girona a few months ago, now the Irish airline company has accused the current Catalan Government of not respecting their agreement, for which it was receiving public subsidies. The Government is surprised by the decision and has reminded Ryanair of its current obligations.
The previous Left-Wing Catalan Government had set a maximum speed limit of 80 km/h for the highways inside Barcelona’s Metropolitan Area. Less pollution and fewer accidents were the measure’ aims. However now, after some controversy, the current Centre-Right Government changed the measure and today cars are able to circulate at 120 km/h again.
Artur Mas, the President of the Catalan Government answered the Spanish Vice President for Economy, who yesterday suggested that he should raise taxes. He also wants to stop the debate about which percentage of the public expenditure should be cut, after the insistence from Madrid to go beyond the 10%. The Advisory Council for the Economic Recovery met today for the first time. Mas also announced a Catalan summit on economic recovery scheduled for the 25th of March.
The Catalan Government’s initiative received the support of its own group (CiU) as well as votes from the opposition: the Catalan Socialist Party (PSC), the Catalan People’s Party (PPC) and the Left-Wing Catalan Independence Party (ERC). The Catalan Minister for Economy Andreu Mas-Colell explained the details of the legal initiative that was passed via an urgency procedure. The initial amount will be of 2,613 million euros.
The figure represents approximately 40% of the Catalan Government’s deficit in 2010. Barcelona’s Chamber of Commerce maintains a growth forecast of 0.8% for the Catalan economy in 2011.