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After yesterday’s meeting with Spanish Prime Minister Zapatero and the Catalan President, nine Autonomous Communities are protesting and accusing Zapatero of giving privileges to Catalonia. The Catalan Government rejects these accusations recalling that all the discussed transfers were pending issues that had already been agreed on. The new debt will be used to re-finance previous debt and reduce the deficit. This evening, the Spanish Ministry of Economy clarified that Catalonia’s authorisation will be applicable to all the Communities with an approved viability plan.

The Catalan Government will be able to issue more public debt and the State will pay Catalonia 759 million euros that are pending from 2008. According to the Catalan Government, the Spanish Executive owes more than 2,100 million euros, although the figure could be larger. The Catalan President, Artur Mas, claimed this amount and the Catalan Government’s capacity to issue new debt, after having presented a viability and austerity plan a week ago. Both leaders discussed pending competence devolutions today regarding already approved legislation and agreements, but without concrete results. Prime Minister Zapatero was also very interested in this meeting as he wants to count on votes from Mas’ party in the Spanish Parliament. Mas confirmed that his party would support Zapatero’s measures to foster the economic recovery, such as the pension system reform agreement or a new framework for SMEs.

The Catalan Government sent its austerity and viability plan to the Spanish Ministry of Economy for reviewing yesterday. The plan reduces the public deficit in more than 2 points and sets it at 1.3% for 2011. The finances of the Catalan Government are generating a wide debate at the moment, which is even been covered by international media.

The Chairman of the Centre-Right Catalan Nationalist Group in the Catalan Parliament Oriol Pujol stated this morning that the Catalan Government could “practically not pay the salaries” of public workers. However the Catalan Government from the same party calmed public opinion saying that although the situation was difficult, civil servants would not need to worry. The Catalan Government needs new credits to get liquidity and is expecting authorisation from the Spanish Government.

Jordi Pujol, Former President of the Catalan Government (1980-2003), Jordi Camí, Director General of the Biomedical Research Park of Barcelona, Jordi Galí, Director of the International Economics Research Centre, Ferran Soriano, Chairman of Spanair and Benedetta Tagliabue, Director of the architectural study Miralles-Tagliabue-EMBT will exchange opinions on how to internationalise the country from different points of views and sectors.

While Spanair recorded an 11.6% increase in passengers in 2010, Iberia lost 19.5% passengers and Air Europe 16%. The airline that is partially owned by the Catalan Government offers 59 direct destinations from Barcelona, 13 of which intercontinental.

Since the Spanish Deputy Minister for Budget threatened to intervene in Catalan budgetary affairs and in response to the recentralisation debate, the Catalan President, Artur Mas, sent a public warning to the Spanish Government and politicians in Madrid. Mas emphasised that “a point of no return” might be reached if the Spanish State puts obstacles on the Catalan Government’s financing. He also threatened that, if Spain takes action, Catalonia will react.

The President of the Catalan Government Artur Mas said that his Cabinet would reduce the Government’s budget for 2011 by 10% in order to cut public deficit. Speaking at the Catalan Parliament today, Mas accused the Spanish Government of not having paid 1.000 million euros last year as agreed. “It is very easy to cut their own deficit by creating deficit to other administrations”, he emphasised.

In an interview with the Financial Times this weekend, the Prime Minister Zapatero threatened to intervene in some Autonomous Communities’ budgets. Today the Spanish Secretary for Economic Affairs reiterated this threat. However the Catalan Government has stressed that Catalonia has in fact no problem with its public deficit. Catalan political parties reminded the Spanish State that the Autonomous Communities only have one sixth of the entire public debt throughout Spain.

The new Catalan Government announced today that the budget for 2011 (currently the 2010 has been extended) will be ready within the next 4 months and approved before the summer break. The Government’s Spokesperson, Francesc Homs, said that for the first time, the budget will be “clearly smaller” than the previous year’s. In addition, the new Government asked for an external audit on the Catalan public administration’s finances.

Francesc Homs is Artur Mas’ right-hand man in the CiU leadership and the director of the last elections’ programme. Homs is the CiU’s policy developer and now he will coordinate the new Catalan Government. Homs will continue being Mas’ closest collaborator. He will assist him in defining the Government’s main policies and he will push for action. In addition, he will directly control sensitive areas and will be the Government’s spokesperson.

The new Catalan Minister for Social Welfare and Family was the CiU’s representative in the Catalan Parliament for this portfolio for the seven years in which the CiU was in the opposition. He comes from the scout and volunteering world, in which he has been very active over the last 40 years. He also worked with the Catalan Government in secondary positions in Jordi Pujol’s times.

Pelegrí has already been a Minister of the Catalan Government, but for Public Administration (2002-2003). Now, Pelegrí becomes the new Catalan Minister for Agriculture, Stockbreeding, Fishing and Environment. In his early years in politics, in the 1990s, he worked on environmental issues. He is discrete and loyal to the Christian Democrat leader, Josep Antoni Duran i Lleida.

The Vice President and the Ministers of the new Catalan Government were sworn into office at noon. The first Government meeting took place just afterwards to appoint most of the Deputy Ministers. In the afternoon, the former Vice President and Ministers switched portfolios with the new appointees. The Left-Wing Government coalition is, from today, officially over. The new President, Artur Mas, promises an efficient and austere Government, with experienced members.

Mas-Colell was a professor at Berkeley and Harvard universities. Most recently, he chaired the Barcelona Graduate School of Economics and was a professor at the Universitat Pompeu Fabra. He is a specialist in microeconomics and some of his publications are world-renowned references on the subject. Mas-Colell had already been Minister of the Catalan Government between 1999 and 2003, in charge of universities. Now he will be Minister for the Economy, Budget and Universities, stressing the importance of innovation and research.