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According to a study by the Professional Association of Economists of Catalonia (Col·legi d’Economistes), an independent Catalonia would obtain a much better grade from rating agencies than it currently gets, taking into account its diversified economy and higher GDP per capita than the European average. Specifically, it would obtain an A+ rating, 7 levels higher than the current BB ‘junk bond’, using Standard&Poor’s classification. The study highlights that without the current fiscal deficit with the rest of Spain, the rating would be “at least” that of the Basque Country and would enable the Catalan Government to access the international financial markets. Catalan taxpayers pay much more to the Spanish Government than the amount they get back in terms of services and infrastructure; a fiscal deficit equivalent to between €13bn and €17.5bn per year.

After confessing that his family had kept a fortune in Andorra without informing tax authorities for 34 years, the President of the Catalan Government between 1980 and 2003 and founder of the centre-right Catalan nationalist coalition CiU, Jordi Pujol, his wife Marta Ferrussola and 3 of their 7 children (Marta, Mireia and Pere) testified before the judge investigating the case. They are indicted for alleged fiscal fraud and money laundering. During more than 2 hours, Pujol (aged 84) answered the judge’s and the anti-corruption public prosecutor’s questions. He insisted that his father had left a hand-written letter with instructions about 140 million pesetas secretly left in Andorra in 1980 for his wife and children, but not him, coming from his “illegal” activities selling currencies during the dictatorship. However, the defence has not yet presented any supporting documents. Besides this, 3 of Pujol’s other sons are indicted for other fiscal fraud and corruption cases.

The current President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, will have to testify as a witness before the Catalan Parliament’s committee investigating the alleged fiscal fraud and possible corruption committed by the former Catalan President and CiU’s leader until 2003, Jordi Pujol. Artur Mas is Pujol’s political heir and was the ‘number 2’ in his last cabinet. Pujol, who uninterruptedly chaired the Catalan Executive between 1980 and 2003, confessed last July that his family had kept a fortune in Andorra for the last 34 years without informing tax authorities. The confession shocked Catalan society, since the historical leader of the conservative Catalan nationalists was a crucial figure in the fight against Franco’s dictatorship, the transition to democracy and the recovery of Catalonia’s self-government. Now, Pujol, his wife and 6 of their 7 children are being investigated by the judiciary for alleged fiscal fraud and several corruption scandals. 

The governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC have reached an agreement to approve the Catalan Government’s budget for the current year. After the President of the Catalan Government and CiU leader, Artur Mas, and the ERC’s President, Oriol Junqueras, reached an agreement on holding early elections on 27 September as a plebiscite on Catalonia’s independence, both parties reopened the budget talks. After 10 days of negotiations, they have reached a definitive agreement, which includes a €100 million fund that will bring more resources for social programmes. They have also agreed to stop paying some allowances to senior officials. Furthermore, they will add €10 million to the development of Catalonia’s own tax administration and they will also create the Agency of Social Protection, which is to manage Catalonia’s Social Security system.

Catalonia posted a 19.88% unemployment rate at the end of 2014, almost 4 percentage points lower than the rate for the whole of Spain, which was 23.70%. On 31 December 2014, there were 756,500 unemployed people in Catalonia, which represents 83,000 less jobseekers than a year ago, according to the Spanish Statistics Institute (INE). Despite the positive annual results, unemployment increased by 30,500 people in quarterly terms, compared to figures from the end of September 2014. Back then, Catalonia's unemployment rate was 19.10%. In terms of jobs, the Catalan economy ended 2014 with 49,300 more people in employment than at the end of 2013, reaching 3,048,100 workers. The Catalan Government is said to be "moderately optimistic" with the figures and highlighted that both 2014 and 2013 ended with less unemployed in annual terms, accumulating two consecutive years of decreased numbers.

The Catalan Government is expecting to post a 2.2% deficit for the whole of 2014, corresponding to some €4.41 billion. However, the definitive figure will not be known until March. This is more than  double the 1% deficit target that the Spanish Government unilaterally imposed on the Catalan Executive. Over the last few years, the two governments have quarrelled about deficit targets, since the Spanish Executive is imposing much stricter objectives on the Autonomous Communities than those it allows itself, despite regional governments exclusively managing and funding the basic Welfare State services such as healthcare and education. For instance, for 2014, the Spanish Government only allowed the Autonomous Communities to only have 15% of the whole deficit allowed by the European Union to Spain’s entire public sector, despite managing some 35% of the country’s public funds and basic services.

The Catalan Government presented this week a first draft of the urban plan that is developing for the 800 hectares surrounding PortAventura theme park, in the Costa Daurada, near Tarragona. The $6 billion holiday resort BCN World is supposed to be built in this area, which is now being promoted by the Catalan Executive itself after the private investor Veremonte did not meet the final deadline for buying the land in December. The urban plan foresees towers of 20 to 25 floors and the construction of 500,000 square metres of tourist and residential-use areas between the Las Vegas style casinos and the beach. Veremonte and its partners Melco, Hard Rock, Caesar’s Entertainment, Melià and Value Retail continue to be involved in the project, along with other investors such as Investindusrial (which owns PortAventura), Ferrari (which wants to build its first European theme park there) and Perelada (which owns other casinos and luxury hotels in Catalonia).

The 1st Digital Government Congress organised by the Catalan Government and the Open Administration of Catalonia consortium (AOC) will take place on Wednesday and Thursday at the Palau de Congressos de Fira de Barcelona. The main aim of this summit is to develop through the use of new technologies the public administration into an “open and innovative administration” that will be smarter, more efficient and effective in order to give “real answers to the demands and expectations of society”, according to Àlex Pèlach, the Managing Director of the AOC consortium.

The Catalan Government has formally requested €9.46 billion in loans from the Liquidity Fund for the Autonomous Communities (FLA), run by the Spanish Finance Ministry, to face debt payments and other obligations during 2015. This is the only way that the Spanish Government authorises the Catalan Executive to request liquidity as it has banned Catalonia’s access to financial markets to obtain additional funds, as many governments do when they issue bonds or ask for loans. Therefore, the FLA has become the Catalan Executive’s only bank and a source of funds that must be returned. However, for the first time this year, the Spanish Government will not make money on the FLA and has set a 0% interest rate, which will have a €300 million positive impact on the Catalan Executive’s budget.

Following the agreement reached last week between the President of the Catalan Government and leader of the governing centre-right pro-Catalan State coalition CiU, Artur Mas, and the President of the left-wing pro-independence party ERC, Oriol Junqueras, on calling early elections in September as a plebiscite on Catalonia’s independence from Spain, the Catalan Executive’s budget for 2015 is now closer to definitive approval. On Monday, the ERC MPs started to withdraw their full amendments to the different sections of the Catalan Government’s budget. Now, the ERC is asking the CiU and the Government to debate their specific amendments on precise programmes in order to have “a fairer budget” which is less regional and more that of a country in its “national transition”, they said.

The Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, strongly criticised the calling of early elections in Catalonia, announced by the President of the Catalan Government, Artur Mas, for 27 September as a ‘de facto’ plebiscite on independence. Sáenz de Santamaría stated that such a call shows Mas’ “failure” and his “incapacity” to run a government. She also said that the Catalan President is announcing elections 8 months in advance “to hide his ineffectiveness”. Besides this, the Spanish Deputy PM warned Catalan authorities that any measures adopted in the coming months that exceed Catalonia’s self-rule powers will be taken to the Constitutional Court. 

The President of the Catalan Government, Artur Mas, insisted on Friday that “a clear absolute majority” will be needed for the pro-independence parties in the early elections scheduled for 27 September to make the world understand that the creation of a new independent state must be negotiated. In a radio interview, Mas explained that the road map towards independence - if there is an electoral majority - is still being negotiated among the different parties and organisations, in order to run separately but with a shared road map in case of victory. This road map would include demanding the start of immediate negotiations with the Spanish Authorities to reach an agreement on Catalonia’s independence from Spain if a majority of citizens vote for this scenario on the 27^th of September. 

The President of the Catalan Government, Artur Mas, has announced early elections to be held on the 27^th of September this year, which will become a ‘de facto’ referendum on independence from Spain. Before then, the Catalan Government and Parliament will continue to develop some basic state structures, such as Catalonia’s own tax administration and Social Security system. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing pro-independence party ERC have now “rebuilt” their parliamentary stability pact for the current term after weeks of public disagreements and confusion over the next steps of the self-determination process. After a long meeting on Wednesday evening between Mas, the ERC’s President Oriol Junqueras and representatives from the main civil society organisations supporting independence, they have also agreed on running separately but sharing the same road map to build an independent state from the day after the elections, if a majority of Catalans vote for this option. 

The President of the Catalan Government, Artur Mas, assessed on Tuesday the Executive’s work during 2014, which he found to be “positive” overall, although he admitted there are still many people in great need and many social and economic challenges ahead. Referring to the current debate on whether to call early elections transformed into a ‘de facto’ referendum on independence from Spain, Mas promised immediate decisions to be announced on Thursday. Before taking the definitive decision and after weeks of admitted “confusion”, the Catalan President wants to hold a last round of talks with the main civil society organisations supporting independence and the left-wing pro-independence party ERC – with whom the governing centre-right pro-Catalan State coalition CiU has shared a parliamentary stability agreement for the last 2 years. “I will not slack” in the self-determination process, Mas stated.

After weeks of negotiations, the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, and the President of the left-wing pro-independence party ERC, Oriol Junqueras, have still not reached an agreement on whether to call early elections and whether to run together or separately. These elections should become a ‘de facto’ referendum on Catalonia’s independence from Spain. On Friday, it seemed they were close to an agreement, but in the evening it was obvious they had still some issues to discuss. During the weekend representatives from both the CiU and the ERC called on each other to close the deal. However, on Monday, the deal was yet to be closed and the main civil society organisations behind the massive pro-independence demonstrations from 2012, 2013 and 2014 are starting to lose their patience. Furthermore, the rest of the political parties have been highly critical of the long weeks of talks.