Politics

The Catalan Government registered a 2.58% deficit in 2014, according to the Spanish Finance Minister, Cristóbal Montoro. The Catalan Finance Minister, Andreu Mas-Colell, already unveiled this figure a few days ago, but explained that it was including the public bailout of a highway charged on 31 December 2014, as otherwise the figure would be 2.13%. In any case, Catalonia's deficit is higher than the 1% target unilaterally imposed by the Spanish Government on the Autonomous Communities. The Catalan Government protested months ago, saying that it was not a realistic target, that it was unfair since it was not in line with spending responsibilities in the management of basic public services, and that it was went against the Budget Stability Law. The Catalan Government took it to the Constitutional Court but the verdict has not been issued yet.

Jordi Pujol Ferrusola, the eldest son of former Catalan President Jordi Pujol, has testified in court to explain the management of the money his family kept in Andorra for 34 years without informing the Spanish tax authorities. Jordi Pujol senior confessed the alleged fraud in July, shocking the entire Catalan society and destroying his moral leadership. In the past few months, the former Catalan President (1980-2003), his wife, and 6 of their 7 children have been indicted for alleged fiscal fraud, and 3 of them are also indicted for other corruption and fraud cases. The Spanish authorities may have known about irregular activities of the Pujol family for decades, but it only made front-pages when the former President started to publicly support independence. Besides, the Catalan Parliament have already undertaken a series of hearings to investigate potential corrupt practices during Pujol's governments.

The coalition will be led by the social activist Ada Colau, former spokeswoman of the Platform for People Affected by Mortgages (PAH), a Spanish grassroots organisation that helped citizens to stop evictions, promoted housing rights and in 2013 was awarded the European’s Citizens Prize. The local left-wing front will be mainly formed by the Catalan Green Socialist and post-Communist coalition ICV-EUiA and several parties campaigning for a re-launching of democracy, such as the Socialist and pro-Catalan independence Procés Constituent and the Spanish far-left party aimed at breaking the bipartisan political model Podemos. However, the main Catalan pro-independence far-left party CUP is working on a separate candidature for the same local elections that will take place on the 24^th of May.  

The Catalan Finance Minister, Andreu Mas-Colell, has announced a €4.23 billion deficit for 2014, representing a 2.13% deficit, significantly higher than the 1% target imposed by the Spanish Government. Mas-Colell stressed that spending went as planned, but revenue was far from the expected result, obtaining €1.91 billion less than expected, since the Spanish Government reduced the Catalan Executive's funds by €600 million. In addition, it has not shared with the Autonomous Communities all the money from the revenue increase of 2014 which came due to the economic recovery. "We have not seen a single euro of this additional revenue", complained Mas-Colell, who estimated that €900 million of this money should have gone to Catalonia. In addition, he has always argued that a 1% deficit for 2014 was not realistic and that it was "illegal", after filing a complaint to the Supreme Court.

In the last few months, the two parties which form the centre-right pro-Catalan State federation CiU, and which have been running together every election since 1979, have been openly arguing about Catalonia's self-determination process and the way to build or not build a state independent from Spain. The Liberal party CDC, which is the largest force within the CiU, has turned towards openly supporting independence, although sometimes not in the most enthusiastic way. However, the Christian-Democrat party UDC seems to be divided on this issue, since its leader Josep-Antoni Duran i Lleida is openly campaigning against independence. But other party leaders and many of its members do support independence. The UDC has agreed on setting an official stance on independence through an internal participation process among its members, which has been finally set for 14 June, after the Municipal Elections of 24 May but before the crucial Catalan Parliament elections of 27 September. 

The political parties and the main civil society organisations that support Catalonia's independence from Spain have agreed that the Catalan Parliament will issue a formal declaration to start building a new state and launch a constituent process, which would be put to a citizen vote at a later stage, if they obtain a parliamentary majority in the September elections. They have been holding a series of talks over the past few weeks in order to agree on a road map that sets out the steps to follow in case pro-independence parties obtain an absolute majority in the next Catalan Parliament elections. These elections have been called early and are being presented as a 'de facto' referendum on independence by the parties supporting this option, since they are the only way to hold a legal vote on this issue after years of the Spanish Government's unilateral blocking attitude.

The support for independence is at its lowest ebb of the last two years according to the latest survey from the Catalan Government’s Survey Institute (CEO), published on Friday. 48% of Catalan citizens are against independence from Spain, while 44.1% are in favour of it. The figures confirm the trend observed in the last CEO survey released in December, when the percentage of those opposing independence (45.3%) overtook those in favour (44.5%) for the first time since 2012. During the last months there have been significant quarrels among the pro-independence parties and there was already the general feeling that the movement was losing supports. This also coincides with a greater mobilisation of the 'no' side, which has focused on spreading doubt and uncertainty about the independence project, and the appearance of new parties at Spanish level that are promising to carry out great changes in the democratic and economic systems.

In 72 municipalities with a high demand for housing, the Catalan Government and the affected town halls will be able to use a right of first refusal to buy flats and houses on sale that are now owned by financial entities as a result of home evictions carried out since April 2008. The measure will only be in place until 2021 in those 72 municipalities and the aim is to prevent investment funds from buying them solely for speculative purposes and not to rent them. The initiative comes after it was noticed that investment funds were buying a great number of empty flats from banks, who came to own them after the previous owners were unable to pay their mortgage during the years of economic crisis. The measure will be included in a decree that will enter into force immediately and is part of a wider plan to facilitate access to housing.

The Spanish Government approved on Friday to take to the Constitutional Court Catalonia's Law of External Action and Relations with the EU and the opening of delegations in Vienna and Rome. The Spanish Executive will appeal against the law despite it being foreseen by the Catalan Statute of Autonomy – approved by the Spanish Parliament and the Catalan people through a binding referendum in 2006. This is Catalonia's main law after the Spanish Constitution and recognises the Catalan Government's right to carry out its own external action abroad. However, in the current debate about Catalonia's independence, the Spanish Government is reiterating its 'no-to-everything' attitude and recentralisation strategy and has appealed against the law approved by the Catalan Parliament on 26 November last.

After months of discussions between parties and civil society organisations, the National Alliance for the Right to Self-Determination, which comprises more than 3,000 different groups, have met once again and announced a minimum consensus on the 27 September elections: citizens must participate in them "to decide" Catalonia's future. However, the Alliance avoided using the word "plebiscite", since some parties and organisations think that the next elections are not a 'de facto' referendum on independence. After the symbolic vote that took place on 9 November last, forces supporting Catalonia's self-determination process have been openly quarrelling on the next steps to follow in order to ensure a binding vote on independence. In mid-January, after reaching an agreement with the left wing pro-independence party ERC, the President of the Catalan Government and leader of the centre right pro-Catalan State coalition CiU, Artur Mas, announced early elections for 27 September, to be transformed into a 'de facto' independence plebiscite.

A strategic gas pipeline is to be built through the Catalan Pyrenees, linking the Iberian Peninsula with France and Central Europe. The Midcat project aims to reduce Europe's dependency on Russian gas by 40%, diversifying the sources of supply. The pipeline should be operational by 2020, announced on Thursday the Spanish Minister for Industry, José Manuel Soria. The day before, French President, François Hollande, Spanish PM, Mariano Rajoy, Portuguese PM, Pedro Passos Coelho, and European Commission President, Jean-Claude Juncker, re-launched the project's construction. Midcat started to be planned in 2007 but it was halted for several years, mainly due to a lack of interest from French companies and institutions, which were not guaranteeing to build their part. Now, the crisis with Russia has reignited the urge to find alternative gas suppliers for Central Europe.

The Catalan Parliament has finally approved the Catalan Government’s budget bill for 2015 and the complementary law on fiscal measures with the backing of the governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC. The CiU and the ERC introduced last-minute changes concerning the launching of state structures, such as Catalonia's own tax administration. These changes come after the Catalan Council for Constitutional Guarantees (CGE) warned that such state structures cannot go beyond Catalonia's current self-rule powers. The CiU and ERC want to build embryonic structures in order to develop them if a majority of citizens vote for independence in the next Catalan elections, which are to be transformed into a 'de facto' referendum. Opposition parties criticised the new budget for "consolidating" budget cuts and for developing state structures.

The Catalan Parliament has continued its interrogation of the Pujol family for alleged fiscal fraud and corrupt practices, after Jordi Pujol – who uninterruptedly headed the Catalan Government between 1980 and 2003 – confessed in July that his family had kept a fortune in the fiscal haven of Andorra for 34 years without informing the Spanish tax authorities. Pujol (aged 84), his wife, and 6 of their 7 sons and daughters have been indicted by the judge in the case. On top of this, 3 sons have received further indictments for other cases, including Oriol Pujol, who was the Secretary General of the Liberal party CDC, which is the largest force within the two-party coalition CiU that has ran the Catalan Government since late 2010. On Monday, it was Oriol Pujol's turn to speak before the parliamentary commission investigating alleged fiscal fraud and corrupt practices during the 23 years Jordi Pujol led the Catalan Government.

Barcelona Provincial High Court judge Santiago Vidal, who has openly supported independence, has been expelled from the judiciary for a 3-year period by the Spain’s Judicial Power Council (CGPJ). The sanction is far from unanimous and has been adopted after an 9-hour-long debate among the CGPJ’s 21 members, since the liberal minority was against sanctioning the judge for having written a draft Constitution for an independent Catalonia. However, the conservative majority considered Vidal to have committed a grave mistake regarding his duty to respect the Spanish Constitution. Vidal has been arguing over the past few weeks that such a draft was written in his free time and is part of his freedom of expression and ideology. In addition, he defended himself by saying that when working as a judge, he has always followed the current Constitution and legal framework. After hearing the CGPJ’s decision, Vidal stated that the decision is “political” because he is “hostile to the regime”, “an expression from 40 years ago that I thought I would not hear in democracy”.

The Catalan Government’s Budget for 2015 includes some “unconstitutional” measures, according to the Council for Constitutional Guarantees (CGE), which is an advisory body issuing non-binding reports. The CGE has criticised a number of bill amendments developing some state structures, but not all of them. The body has highlighted the way the budget bill is to develop Catalonia’s own tax administration and its own competition authority, finding it to be at odds with the Spanish Constitution. However, the CGE does consider the way in which Catalonia’s own Social Security system would be developed (by launching the Agency of Social Protection) to respect the Constitution. The governing centre-right pro-Catalan State coalition CiU and the opposition left-wing Catalan independence party ERC have said they will modify the measures criticised and will develop the affected state structures in a similar way to the Social Security system.