Public university undergraduate students will have to pay between 64 and 100 euros more per year. Those repeating once will pay the same amount, but those taking a course for the third time will pay 60% more. The measure would bring in 20 million euros in one year. 25% of the revenues from the fee increase will be reinvested via scholarships, the first that will be aimed at university students managed by the Catalan Government.
The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.
The Catalan People’s Party (PPC) abstained and facilitated the rejection of the motions to substitute the budget bill presented by the Catalan Government, run by the Centre-Right Catalan Nationalist Coalition CiU. The motions had been presented by four parliamentary groups for a range of reasons, but mainly because the Government’s budget proposal was cutting too much social spending while it did not make enough efforts to raise revenues.
Thanks to a five-year contract, the Catalan Government undertakes the enlargement of the airport terminal and Neilson-Thomas Cook agrees to include ski resorts in the Lleida Pyrenees as part of its winter holiday offer.
The European Commission also recognised "a different effort" to the rest of Spain’s Autonomous Communities. Brussels said so when on Tuesday it asked Spain “to strictly control” the public “deficit and debt of regional governments”, the day after Moody’s rating agency warned about Catalonia’s expected deficit for 2011. The Spanish Government took note from this particular recommendation but not the other made by Brussels, which included increasing energy taxes and VAT. The Catalan Government criticised Moody’s for “creating alarm” with assessments that do not take into account the whole situation. In addition, it denounced how the Spanish Government has reduced its own deficit by transferring it to the Autonomous Communities.
The President of the Catalan Government detailed his plan to Herman Van Rompuy to balance the Catalan budget and reduce the public deficit. Artur Mas stressed the importance of the Mediterranean Railway Corridor for the European economy and he also outlined the benefits of an effective Union for the Mediterranean, in this moment in particular. Mas was joined by Josep Antoni Duran i Lleida, his electoral ally and leader of the Catalan Christian Democrats. They also met with Competition’s Commissioner, Joaquín Almunia.
Managers from the 27 airlines forming the world’s leading group meet in Barcelona for two days. They stressed Barcelona El Prat’s “strategic” position and its potential to become a hub linking Europe with the Middle East, Latin America and Southern Africa. Barcelona El Prat is Europe’s 4th airport regarding passenger origin and destination. The Catalan Government reasserted its commitment with Spanair.
The Catalan Parliament approved the modification of the Inheritance Tax, which is practically eliminated among couples, sons, daughters, parents and grandparents. It was an electoral promise of the Centre-Right Catalan Nationalist Coalition (CiU), running the Catalan Government. With this reform 150 million euros will be lost in 2011 and 102 million in 2012. The Left-Wing opposition heavily criticises eliminating revenues while budget cuts are being implemented, in an “unfair decision” that “only benefits the richest”.
After the presentation of the Catalan Government’s budget proposal at the Catalan Parliament, opposition parties criticised its content and the lack of debate on the subject. The Catalan Government needs support from opposition MPs or at least their abstention to approve the budget, which foresees a 2.66% deficit for 2011. The Spanish Vice President for Economy Elena Salgado insists that the mechanisms of deficit control “will be strictly implemented”.
The Catalan Finance Minister presented the Catalan Government’s budget for 2011, which totals 39,354 million euros. For the first time, the budget will see a decrease in comparison to the previous year. Public expenditure is reduced by 10%, brought to 2007 levels. The public deficit is also reduced, but only to 2.66%. The Catalan Minister states that if the Spanish Government wants Catalonia to reach the 1.3% objective, it needs to show institutional loyalty and transfer the money due for 2011 instead of delaying it and calculating smaller amounts.
In 2010, Catalonia exceeded the pollution limits for nitrogen oxide defined by the European Union, but not for the polluting particles. The large number of diesel vehicles would be one of the main causes. An extension until 2015 has been asked by the Catalan Government.
The good results at the municipal elections give the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU), running the Government, the support of citizens to carry on with the austerity measures and its plan to reduce public expenditure by 10%. After the Government’s approval, the budget will be discussed at the Catalan Parliament and approved by the end of July. CiU does not want to mix budget negotiations at the Parliament with local agreements after the municipal elections.
'Convergència i Unió' (CiU) increases its vote share across Catalonia and becomes the leading party in number of votes. The large victory backs the Catalan Government’s controversial austerity measures. The Catalan Government and Barcelona City Council will be run by the same party, CiU. The Catalan Socialist Party loses large cities and 22% of its votes across the country. The People’s Party becomes the third party and wins in Badalona with a discourse focused on illegal immigration. ERC loses around a third of its votes but other pro Catalan independence parties gain support. The xenophobic and extreme right PxC remains marginal but increases its base and enters the Barcelona Metropolitan Area. The turnout was 55%, one point higher than in 2007. The null or spoilt vote multiplied its share by three but remains marginal.
The Catalan Government will be able to keep the number of new teacher positions this year, after the Spanish Government withdrew its complaint. However, the Spokesperson for the Catalan Government insisted that the Spanish Executive continues with “its offensive against Catalonia”, as among other issues it still refuses to pay 1.45 billion euros from the Competitiveness Fund. In addition, only 0.8% of the Spanish Government’s approved public works in 2011 are in Catalonia.
Tourists from Eastern Europe will increase their presence in Catalonia this summer season, according to experts in the sector. Girona is now linked with 60 destinations while at the same Ryanair is reducing its flights from the airport and in a dispute with the Catalan Government over subsidies. Spanair will operate Ryanair’s flight to Madrid if no other airline does it.