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Artur Mas, the President of the Catalan Government, has announced the main austerity measures to reduce Catalonia’s public deficit and meet the 1.3% objective for 2012. Mas stressed that these measures are to be taken in order to reduce the deficit and not harm social policies. The Catalan People’s Party was satisfied with the plans, while the Left-Wing parties warned that they would harm the middle classes. The Catalan President also sent a warning to the next Spanish Prime Minister: a new “fiscal agreement” for Catalonia might be “one of the few opportunities left” to rebuild relations with the rest of Spain.

Students have protested against the Catalan Government’s measures intended to adjust university budgets. Protesters have criticised “privatisation”, with budget cuts and university tax increases. However, the Catalan Government denied these claims and said it had no intention of laying off 4,000 lecturers and researchers. As with other strikes, the figures presented by both sides are contradictory. Organisers talk about a “success” and stress that in some faculties classes were completely suspended. Nevertheless, official information states the uneven support of students for the strike action, ranging from 25% to 40% depending on the faculty.

The Catalan Government and the Irish low-cost airline Ryanair have put an end to their dispute and have announced an agreement to operate from Girona-Costa Brava and Reus for the next five years starting in April 2012. Ryanair has guaranteed that in the first twelve months more than 3 million passengers will pass through Girona Airport and 500,000 through Reus Airport. However, it has one condition: the Spanish public airport operator AENA cannot increase taxes at neither Girona nor Reus airports. If that happens the agreement will become null and void. Ten days ago, Ryanair had completely abandoned Reus. Flights through Girona had been significantly reduced in the summer and they had cut the number of flights operating in the winter months.

The trade union organising the protest has said that 70% of doctors took part in the strike, while the Catalan Ministry of Health reduced the figure to only 20%. Doctors are protesting at the budget cuts in the Catalan healthcare system in order to decrease the public deficit, which included a 5% salary reduction. The doctor’s union called for a strike on November 15th and 16th, coinciding with the negotiations on the 2012 budget and the Spanish elections. The Catalan Government stated that the strike asks for unrealistic salary increases and considered it has “failed”. 20,000 medical consultations have to be postponed.

The Catalan Government considered the figures “worrying” but puts them to a “complicated” financial situation that has provoked an economic uncertainty. On Tuesday, the Government announced an action plan to reduce unemployment in the short term. In Spain, there are almost 5 million unemployed people, which represents an unemployment rate of 21.52%. Lleida has Spain’s lowest unemployment rate, set at 13.02%.

The Catalan Minister for Business and Employment has stressed that the Government’s objective is to reduce unemployment by half by 2014. The plan foresees ten measures, with a special focus on the long-term unemployed. Some of the measures include incentives to SME companies to hire the long-term unemployed, collaborating with private temporary work agencies, enlarging the network of education classrooms and relocating staff from the Catalan Public Employment Service to provide job search council and other direct services.

The 3.7 billion euros may be increased to 4 billion euros depending on demand. After the first day, the offer of bonds raised “high interest” according to financial sources. Citizens will be allowed to buy a minimum quantity of 1,000 euros and a maximum of 2 million euros. The Government is issuing bonds that expire in one year at an interest rate of 4.75%, and others expiring in two years at an interest rate of 5.25%. The Catalan Finance Minister stated that this bond offer is “safe and attractive”. It is the third emission of retail bonds in the Catalan Government’s history. The current bond emission mainly aims to replace those from the first emission, which expire next November 21st.

The President of the Catalan Government, from the Centre-Right Catalan Nationalist coalition CiU considered the statement “an important step” and stressed that they “are hoping for the terrorist group's total break up and the total abandonment of its weapons”. The Left-Wing Catalan Independence Party, ERC, asked the Spanish Government to quit its “ivory tower”, “as the United Kingdom did”, and “let the Basque and the Catalan peoples decide their future”. However, the Catalan Association of Terrorist Victims has criticised ETA’s announcement and said that it only hopes for ETA’s disappearance, but other individual victims have celebrated the news. ETA has killed more than 800 people, 50 of them in Catalonia.

Andreu Mas-Colell, former Harvard Professor and the current Catalan Finance Minister, travelled to London to meet with financial representatives. The objective is to explain, first-hand, the Catalan Government’s austerity plans and its efforts to reduce the deficit and to foster the economic recovery. Mas-Colell met with City investors, banks and media, such as the ‘Financial Times’.

Despite exceptional increases for concrete development projects, external relations and international cooperation services and funds were reduced by almost 50% within the plan to reduce public spending in 2011. The Catalan Agency for Development Cooperation decided to increase financial aid to the Horn of Africa to help with the humanitarian crisis that is affecting 13.5 million people.

The Catalan President, Artur Mas, announced that he along with ministers, deputy ministers, and directors-general would not receive the Christmas bonus this year. The measure affects all the Catalan Government’s higher-ranked staff and is meant to send a message of austerity. 350 people will see their salary reduced, saving 1.8 million euros of public money. It is an answer to doctor and nursing unions, who had asked politicians to reduce their salaries. Last year, higher-ranked officials experienced a 15% salary cut.

September has been a bad month for employment over the last number of years, but this past September is the worst in the last 11 years. The Spanish Government has blamed the budget cuts undergone by the Autonomous Communities for the unemployment increase. The Spokesperson for the Catalan Government considers Madrid’s statements as “offensive” and “pitiful”, and he stressed that the Spanish Government had asked them to double their public spending cuts. He also added that the Spanish Government has not paid the money that it owes.

The Catalan Government is obliged to reduce the public deficit and the public healthcare system is also subsequently affected by the budget cuts. Doctor and nursing unions are mobilised, while salary reduction and temporary lay offs are being discussed. Waiting lists have increased due to some hospital services being partially and temporarily closed, especially during the summer months. Many citizens have been protesting, in different demonstrations. The Catalan Health Ministry announced new maximum waiting times for severe interventions. In addition, some hospitals are reopening some operating rooms.

The Debate on the State of the Nation ended at the Catalan Parliament with the approval of several resolutions. After three days of debate, the resolutions were voted on Friday. One of them condemns the way in which the Spanish Constitution amendment was negotiated and passed, as it did not take into account parties that participated in the Constitution drafting and approval, and it also interferes with the financial autonomy of Catalonia. Another motion demands the Catalan Government to present the budget for 2012 before October 10th next.

The Catalan airline wants to consolidate its hub at Barcelona Airport. Spanair, partially owned by the Catalan Government, plans to transform Barcelona El Prat into an international hub in its own right.