Politics

Catalan President, Carles Puigdemont, responded this Thursday to those who claim that the pro-independence process is provoking “company drain” in Catalonia and assured that this is “false”. During the presentation of Catalonia’s Economic Report at the Chamber of Commerce, Puigdemont pointed out that 815 companies moved their tax base in 2015, which represents 0.32% of the total of companies with salaried employees and 14% less than in 2014. He also explained that Madrid lost 1,035 companies’ tax addresses last year, 0.5% of the overall number of companies in this Autonomous Community. Thus, Puigdemont lamented that some try “to spread the rumour” of an economic reality in Catalonia which “doesn’t help to create an atmosphere of confidence”, but which on the other hand “foreign investors do have”.

Spanish Unionist ‘Ciutadans’ obtained 40 MPs in the last Spanish Elections, held in December 2015. This was the highest figure ever achieved by a Catalan party. Indeed, besides being one of the most fierce opponents to Catalonia’s push for independence and having denied Catalonia’s right for self-determination, this young party was born and raised in Catalonia and has a Catalan candidate running for Spanish President, Albert Rivera - two aspects which have been emphasised by the party during this recently started electoral campaign. In a press conference at CNA headquarters,‘Ciutadans’ candidate for Barcelona, Juan Carlos Girauta, also defended his condition of being Catalan and called for those “pro-independence supporters” who chose this option because they were “upset” with Spain, to vote for ‘Ciutadans’. “We want to explain to them the advantages of our project”, he said, which is “building a Spain which is worth it”. 

The possibility of holding a unilateral referendum on independence has not been rejected by the Catalan Government. According to Catalan Government Spokeswoman, Neus Munté, this option will be considered as long as it has “total democratic legitimacy” and “international homologation”. However, Munté emphasised that the roadmap towards independence, which foresaw an 18^-month term of office and constitutive elections afterwards, is still “in force”. “We don’t give up on the pro-independence roadmap but we are open, of course, to listening to all those options which would go in the same direction”, she stated. The possible celebration of a unilateral referendum on independence was first raised by radical left pro-independence CUP in the last weeks and it has been brought into the spotlight of the Spanish electoral campaign by several Catalan parties.

The Catalan branch of the conservative People’s Party (PP), which has ruled the Spanish Government since 2011, has opted again for Jorge Fernández Díaz, currently the Spanish Minister for Home Affairs, to run for the Spanish Elections in Barcelona province.Fernández Díaz assured that “some messages in Catalonia incite hatred” especially against PP, who is usually “demonised”. He also accused those parties who defend holding a unilateral referendum on independence in Catalonia of being “a problem for coexistence” and assured that “the world has already enough problems without politicians inventing new ones”. Focusing on the lack of agreement amongst the main Spanish parties after the elections, which led to the calling of new elections, PPC urges voters to avoid experiments and trust “those who were most responsible for taking this country out of the crisis”.

Catalan independence, and how to achieve it or stop it, was one of the main topics on the Spanish general electoral campaign trail on Friday in Catalonia. The candidates of the two parties of the governing ‘Junts pel Sí’ coalition, liberal Convergència (CDC) and left-wing Esquerra (ERC), presented different views on the idea of a unilateral referendum on independence, while ‘En Comú Podem’, the Catalan branch of ‘Unidos Podemos’, warned against organising, again, a non-consented consultation such as the one on the 9th of November 2014. “It wouldn’t be useful to call a unilateral referendum on independence if ‘no’ voters decide to boycott it”, said CDC candidate Francesc Homs, who is actually facing trial for helping to organise the 2014 consultation. Such a vote would be “worrying”, said Xavier Domènech, from ‘En Comú Podem’, who has always pointed out that his party, if victorious in the election, would call an official referendum. The candidate from ERC, Gabriel Rufián, stressed that they “will always support initiatives that give a voice to the citizens”.

The conservative People’s Party (PP) will win the Spanish elections but ‘Unidos Podemos’, the coalition between Podemos and Izquierda Unida (IU), will come second and oust the Socialist Party (PSOE), which would become the third party, according to a poll published on Thursday just hours before the Spanish electoral campaign kicks off. ‘Unidos Podemos’, which is the only Spanish political force that supports the celebration of a Catalan referendum on independence, would be the most voted political option in Catalonia, achieving between 14 and 15 seats, followed by the left-wing pro-independence party Esquerra Republicana (ERC), which would come second with between 8 and 9 deputies. The Catalan Socialists would be third, with 8, and the liberal and pro-independence Convergència Democràtica (CDC) would come fourth and get between 6 and 7 members of parliament. The Spanish Congress, however, would continue to be deeply fragmented and the balance of power could, once again, fall into the hands of the Catalan parties, as no major party would have the numbers to form a majority government.

The Catalan President, Carles Puigdemont, rebuffed on Thursday a request by the radical left-wing party CUP to “rebuild bridges” of trust after their veto of the 2016 draft budget bill. “The best bridges are those that you do not burn”, he said in a plenary session in the Catalan Parliament. The Catalan Government, led by the pro-independence coalition ‘Junts pel Sí’, expected the parliamentary support of the anti-capitalists following an agreement between the two parties in January that saw former Catalan President Artur Mas stepping aside and Puigdemont taking office. But CUP presented an amendment to the budget bill, the most important law of the parliamentary term, thus making it impossible for the Government to pass it. Following this, Puigdemont announced he will submit himself to a vote of confidence in September. CUP MP Mireia Boya said that the pro-independence forces should “rebuild bridges” from “today”, adding that the anti-capitalists feel “responsible but not guilty” for the current situation. Meanwhile, sources close to the Government suggested to the CNA that Puigdemont will use the summer to widen support for his government and depend less on CUP.

CUP’s veto on the budget for 2016 has provoked not only the extension of the bill for 2015 but also other major political consequences. One of them is the vote of confidence that Catalan President, Carles Puigdemont, announced he will submit himself to. “I trusted you and I defended you until the end”stated Puigdemont, addressing radical left pro-independence CUP and added that the lefties “let down the hopes of millions of people”. Puigdemont considers the conditions which led to the agreement between the pro-independence forces after the 27-S elections to “have now changed”and therefore it will be up to the Parliament to decide whether to restore confidence in the current Government or call for new elections. “We can’t continue like this, we go nowhere with such a volatile basis”, he admitted.

Catalan President, Carles Puigdemont considers pro-independence radical left CUP’s veto on the bill for 2016 to “mark a turning point” and assumes that the stability agreement reached between pro-independence forces CUP and cross-party list ‘Junts Pel Sí’ is now broken. However, Puigdemont nuanced that this doesn’t mean that the current term of office is over but assured that from now on ‘Junts Pel Sí’ will rule in minority, with the 62 MPs they have in the 135-seat Catalan Parliament. During a meeting with the Catalan executive held this morning, right before the debate over the budget, Puigdemont stated that the bill for 2016 won’t be passed “at any price” and that the Government’s project is not “for sale” as the main goal continues to be achieving independence

The stability of the parliamentary term in office and the relationship between the Catalan Government and the radical left-wing party CUP are at risk after the latter decided on Tuesday to maintain its total opposition to the 2016 draft budget bill. The Catalan Vice President and Catalan Minister for Tax Office, Oriol Junqueras, said that the decision will have “extremely severe consequences” and that “social services” will be particularly affected. The Catalan Government spokeswoman, Neus Munté, warned that the stability of the current term was “hit” and regretted that CUP didn’t respect the agreement with the pro-independence cross-party list ‘Junts Pel Sí’, the main party in the Parliament, through which they committed to “guarantee parliamentarian stability”. Munté also warned that CUP’s veto “will have consequences” but emphasised the government’s aim to “continue working to put Catalonia at the gates of independence”. CUP’s rejection of the bill, which they considered insufficient and still too “autonomic”, forces the Catalan Government to extend the 2015 budget.

The Catalan Ministry for Foreign Affairs wants to open ten new offices abroad before summer 2017. The aim is to have delegations of the Catalan Government in Denmark, Poland, Switzerland, Croatia, Vatican City, Portugal, Morocco, South Korea, Mexico and Argentina. This will be added to those currently existing in the United Kingdom, Germany, France, Italy, Belgium, Austria and the United States. However, the deployment of the plan depends on pro-independence radical left CUP’s support for the draft budget for 2016 presented by the Catalan Government. So far, the anti-capitalists have kept their veto on the bill on account of it being “too autonomic” and “not reflecting” the pro-independence proposal approved by the Parliament on the 9^th of November. 

Spain’s Constitutional Court (TC) has approved the appeals presented by Spanish Unionist ‘Ciutadans’, the Catalan Socialist Party (PSC) and the Conservative Catalan People’s Party (PPC) in November in relation to the pro-independence declaration approved by the Parliament. The three parties presented writs of protection and considered that the pro-independence forces’ agreed declaration to start building a new country violated citizens’ right of participation and that of the parliamentary representatives, as the Spokesperson Bureau was convened before PPC constituted themselves as a parliamentary group. This Tuesday, the magistrates in the TC partially upheld the appeals. The content of the pro-independence forces’ agreed declaration was already suspended by the TC in December, and declared it unconstitutional and, therefore, invalid. 

Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras “totally” rejected the idea that Catalonia will face new elections if pro-independence radical left CUP reject the draft budget for 2016 presented by the Government. In an interview with Catalunya Radio, he urged pro-independence cross-party list ‘Junts Pel Sí’ and CUP to “make the most of the 72 seats majority in the Parliament” rather than thinking about potential new elections. Junqueras also refused to start negotiating with other groups in the Catalan Chamber if CUP keeps up their veto on the bill, as it would mean “renouncing the pro-independence roadmap”.

A year’s extension for Spain on its allotted time to meet the public deficit target has been deemed illegal by the lawyers at the European Council. This ruling comes after current Spanish President Mariano Rajoy sent a letter asking for an extension to the European Commission President Jean-Claude Juncker. A legal report to the Council was commissioned by the presidency of the Economic and Financial Affairs Council (Ecofin), after Germany’s complaints of having saved Mariano Rajoy from a sanction during the Spanish electoral campaign. However, the Ministers of Economy and Finance of the EU will not be able to approve this extra year until the European Commission decides whether or not it is punishable by a fine of up to 2 billion euros due to breach of the public deficit target. Despite the ruling, Spanish Deputy Prime Minister Soraya Sáenz de Santamaría has stated that there is “no doubt” that no fine will be issued for missing the deficit in 2015.

The draft budget for 2016 presented by Catalan Vice President and Catalan Minister for Economy and Tax Office, Oriol Junqueras, doesn’t have enough support to be passed by the Parliament. Although Junqueras described the budget as “realistic”and “socially committed”, pro-independence radical left CUP considered it insufficient and still too “autonomic”, and claimed that the draft didn’t “reflect the pro-independence declaration proposal”approved by the Catalan Chamber on the 9^th of November. Thus, CUP presented their veto and urged the Catalan Government to present a new draft which would include the anti-capitalists’ proposals, such as disobeying the deficit target imposed by the Spanish executive and carrying out a deeper reform of the tax system. Catalan President, Carles Puigdemont, warned that in order to “complete the task”and put Catalonia “at the gates of independence”the Parliament should at least be allowed to process the budget. This Friday, Puigdemont accused CUP of being “destroyers”if they continue to be carried along by “ideological prejudices”and maintain their veto on the bill.