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The President of the Catalan Government, Artur Mas, has travelled to Israel heading a delegation including businesspeople as well as the Mayor of Barcelona, Xavier Trias, and the Catalan Minister for the Economy, Andreu Mas-Colell, among others. On Tuesday Mas met Shimon Peres, President of Israel, and on Monday the Finance Minister, Yair Lapid, who is also the Chairman of Yesh Atid (the second-largest party in the Knesset) and ‘number 2’ in Benjamin Netanyahu’s Government. With Peres, Mas talked about a federal European Union and Catalonia’s process of building its own state. With Lapid, who is a clearly emerging figure in Israel’s political landscape, Mas talked strictly about economic matters. The Catalan delegation also signed several agreements regarding scientific research and visited the Holocaust Memorial as well as the Wailing Wall.

The Parliament of Catalonia rejected a proposal to call for a “unilateral” self-determination referendum in the event that the Spanish State “blocked” the possibility of organising a vote by agreement. The motion was rejected with the votes of the Centre-Right Catalan Nationalist Coalition (CiU) – which runs the Catalan Government – and the three parties defending the unity of Spain: the Catalan Socialist Party (PSC), the People’s Party (PP) – which runs the Spanish Government, and the anti-Catalan nationalism and populist party Ciutadans (C’s). The motion supporting the idea of calling for a self-determination referendum in “a unilateral way” had been presented by the radical left-wing and independence party CUP, which has only 3 MPs in the 135-seat chamber. However it was also backed by the second-largest group, the Left-Wing Catalan Independence Party (ERC) and some of the MPs from the Catalan Green Socialist and Communist Coalition (ICV-EUiA).

Barcelona City Council and the Catalan Government’s programme ‘Invest in Catalonia’ are among the winners of the 2013 Financial Times’ Foreign Direct Investment (fDi) Innovation Awards, which “recognise the world’s most creative investment promotion agencies”. Barcelona City Council has received an award in the town-planning category thanks to its pioneering role in the development of smart cities: the Catalan capital has prioritised smart-city applications and projects, trying to become one of the world leaders in this category. In addition, ‘Invest in Catalonia’, a programme of the Catalan Government’s agency for business competitiveness ACCIÓ, received the award in the business matchmaking category.

The Catalan Government has presented its budget proposal for 2014, which posts a 1% deficit, representing a 35.5% annual reduction and amounting to €1.98 billion, in line with the 2014 deficit targets imposed by the Spanish Government. The budget prioritises healthcare, education and social policies, which represent 71% of the total non-financial spending. Non-financial spending grows by 0.2% and reaches €20.30 billion, while the total spending amounts to €29.31 billion. The Catalan Finance Minister stressed that spending had not been reduced this year since in the last 3 years it had already dropped by 22%. Budget cuts “have reached their limit”, as otherwise “social cohesion” and “the Welfare State” would “be at risk” he said. In 2014 the Catalan Executive will spend the same per inhabitant as it was doing in 2004 taking into account inflation (€1,901).The adjustment for 2014 focuses on increasing revenue by €3.2 billion, mostly through new taxes (€910 million) and the sales of assets and privatisations (€2.32 billion). On top of this, the Catalan Government forecasts a 0.9% economic growth for 2014, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%).

The Catalan Government has forecasted a 0.9% economic growth for 2014 in its budget proposal for next year, leaving behind the recession of 2012 (-1.2%) and 2013 (-1.1%). The positive figures are mostly due to the strength of the export sector – which will continue to improve its results. The main factor slowing down growth will be the internal demand, which will continue to decrease although it will do so at a lower pace. In addition, the Catalan Executive believes the unemployment rate will decrease and reach 23.1% by the end of the year. It is expected 2013 will end with a 23.7% unemployment rate, higher than the 22.6% rate registered at the end of 2012.

Eight officers of the Catalan Police have been indicted by the judge and consequently temporarily suspended from active service by the Catalan Government, it was announced on Monday. The 8 policemen are suspected of beating up a middle-aged man while they were arresting him, causing his death, trying to destroy evidence and obstructing justice, according to the judicial report. The victim – gay businessman Juan Andrés Benítez – died a few hours after his arrest from a heart attack, allegedly provoked by 5 punches received on his head during his arrest. The case has generated significant controversy, since it is not the first time that Catalan Police have been involved in a violent abuse scandal. At the same time, the Spanish Police were requested to act as judiciary police and issue an investigation report on the facts.

Catalonia is participating in the ‘World Travel Market’ fair in London, with the objective of turning the country into a destination of reference for British tourists, and more precisely of becoming their main destination in Southern Europe and the Mediterranean. Catalonia’s stand focuses on sectors that are usually appealing to British visitors, for instance gastronomy, culture and golfing. Great-Britain has become the second largest tourist market for Catalonia after France. In the first 9 months of the year, 1.4 million tourists from the UK have visited Catalonia, generating €1 billion. The Catalan Government is expecting this trend to consolidate in the years to come.

The President of the European Parliament, Martin Schulz, visited Barcelona on Thursday and met with the President of the Catalan Government, Artur Mas, and the Secretary General of the Catalan Socialist Party (PSC), Pere Navarro. Schulz, who is the Social-Democrat candidate in the next European Elections for the President of the European Commission, acknowledged that he talked about Catalonia’s self-determination process with Mas and Navarro. However, the German politician refused to take sides, saying he has “no solution” to offer and that “the problem” has to be solved between Catalonia and Spain, not at European level. Furthermore, he insisted that Catalonia’s independence should not be the issue in the next European elections. “I want to talk about youth unemployment”, he stressed.

The Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría made it clear that “members of the Spanish Government” and “members of the Generalitat [Catalan Government]” have been holding meetings in the past few weeks, including the Spanish Prime Minister, Mariano Rajoy. “We inform about some of them and about others we do not, out of consideration for the delicate subject”, she stated. Sáenz de Santamaría insisted that talks were just starting; “we are in an incipient phase”, she stressed, “to acknowledge that channels for negotiation have to be found”. However, she totally rejected the main demand from a broad majority of Catalan society, for allowing a self-determination vote to take place in Catalonia. The Deputy PM did not want to disclose any part of the Spanish Government’s strategy on how to handle the issue. However, she praised the figure of the ‘number 2’ of the Centre Right Catalan Nationalist Coalition (CiU), Josep Antoni Duran i Lleida.

In the last few days, there has been an attempt to build bridges between Catalonia and Spain, despite the visible increase of tension between the two governments. In public the Catalan and Spanish Executives are heading for a collision but at the same time discreet manoeuvres explore alternative ways out. This Tuesday, the ‘number 2’ of the Centre-Right Catalan Nationalist Coalition (CiU) – which runs the Catalan Government – Josep Antoni Duran I Lleida acknowledged that he met with the Spanish Prime Minister and leader of the People’s Party (PP) Mariano Rajoy on the 16^th October. Besides, the Catalan President, Artur Mas, met on Friday with the Secretary General of the Spanish Socialist Party (PSOE) to talk about a constitutional change. Today, the Spokesperson of the Catalan Government, Francesc Homs, stated that Catalonia is waiting for an offer from the Spanish establishment. Although “there is no deadline” for this offer, the self-determination process will not be waiting for it, although if it arrives it will be studied.

During the first two thirds of 2013, the Catalan Government deficit amounted to €2.05 billion, equivalent to 1.06% of Catalonia’s GDP. The figure corresponds to 67% of the 1.58% deficit target imposed by the Spanish Government to the Catalan Executive for the whole year 2013. Meanwhile, the entire Spanish public sector posted a deficit corresponding to 5.07% of Spain’s GDP in the same period, although data from municipalities is still pending to be included. The figure already represents 78% of the total 6.5% deficit target that the European Union allowed Spain for the entire year 2013.

The Spanish Prime Minister, Mariano Rajoy, and the President of the Catalan Government, Artur Mas, shook hands at the entrance of the Economic Forum of the Western Mediterranean. Mas wanted to welcome all the event’s participants since the forum is held in a Catalan Government building and is co-organised by the European Institute of the Mediterranean (IEMed), which is mostly funded by the Catalan Executive. However, in protest against the Spanish Government’s veto to authorise him to deliver a short welcoming speech, Mas did not stay to listen to Rajoy’s opening speech. Later today, in the Catalan Parliament’s government control session, Mas stated that “there are no protocol problems, but protocol impositions that generate problems”.

The Catalan Government approves a decree to transform the Catalan Institute of Finance (ICF) into a publicly-owned bank to support business and particularly SMEs. With this change, the Catalan Executive’saim is “to strengthen the ICF’s role as a tool to support business and the productive economy”, as the Government’s Spokesperson, Francesc Homs, told the press on Tuesday. The measure is part of the Parliamentary Stability Agreement signed between the Left-Wing Catalan Independence Party (ERC) and the governing Centre-Right Catalan Nationalism Coalition (CiU).

The Catalan Government’s Ramon Margalef Prize was awarded to American oceanographer Sallie Watson for her research on marine biology. The President of the Catalan Executive, Artur Mas, praised the scientist for her discoveries, stating Watson was “the “most productive, charismatic and active searcher in the field of biologic oceanography and marine ecology”. Mas also underlined Catalonia’s growing influence on the international scientific stage, by stating that even though “it was a small country” Catalonia had transformed into an “international scientific centre of high calibre”.

The tension between the Spanish and the Catalan Executives is increasing. The Spanish Government refused to allow the President of the Catalan Government, Artur Mas, to deliver a short welcoming speech to the participants of the First Economic Forum of the Western Mediterranean. This event will take place in Barcelona on Wednesday, within the headquarters of the Union for the Mediterranean Secretariat (UFM), a building owned by the Catalan Government. It will bring together 10 Ministers of Foreign Affairs and it will be part of the 5+5 Dialogue, which is formed by 5 EU Member States and 5 North African countries. The Spanish PM, Mariano Rajoy, will chair the meeting and he only allowed Mas to come as a part of his delegation, Mas will be permitted to join the meeting but not to speak. In similar meetings, presidents of other Spanish Autonomous Communities, including Catalonia, have been allowed to address participants.