Politics

An independent Catalonia would be totally viable, according to a report conducted by the research institute from the bank, Credit Suisse. In addition it would improve its ranking on the United Nation's Human Development Index (HDI) and reach the 20^th position while Spain would drop by three places and reach the 26^th position. The report claims that small countries tend to have a higher standard of living due to a number of factors, such as more efficient services, a higher chance of benefitting from globalisation and a more homogenous population. It uses these findings to predict the HDI of territories seeking independence, such as Catalonia, Scotland, Flanders and Quebec.

The President of the Catalan Government, Artur Mas, stated on Tuesday that the self-determination process is following 3 principles: respect for "the law and dialogue", "but also democracy", which will guarantee that citizens are able to vote. He said that the Government "has done its homework" by "providing information" about the process and how to build a new state, by ensuring "participation" from civil society, by proving "a will to talk" with Spanish authorities, and by showing "determination" to go ahead with the mandate resulting from the last Catalan elections to organise such a vote. Mas highlighted that the vote will be legal since it will use Catalan legislation. However, he asked citizens for "psychological strength" for the months ahead and future "challenges". Mas also emphasised that Spain's "economic recovery" is mostly "coming from Catalonia", since Catalans are "leading" the statistics regarding job creation, exports, tourism, scientific research and foreign investment.

Mariano Rajoy, Spain's Prime Minister, admitted that he "does not know what will happen on the 9^th of November", the day on which a majority of Catalan parties agreed upon for holding a self-determination vote, which goes against the Spanish Government's will. However, Rajoy immediately added that the Catalan President, Artur Mas, told him that "he will not be doing anything illegal", in their Wednesday meeting. The Spanish establishment considers such a vote to be illegal while a few constitutional experts say that such a vote could take place if there was the political will to authorise it. A two-third majority of the Catalan Parliament is determined to use Catalonia's legal framework to call a legal vote. Besides, in the press conference held on the Friday before his holidays, Rajoy also admitted that the self-determination debate is not affecting the economy. However, he added that any step generating "uncertainty or doubts" will "not help" the economic recovery.

The Catalan National Assembly, a grass-roots organisation, and Òmnium Cultural, a non-profit association promoting Catalan culture, are behind the massive independence demonstrations of 2012, 2013 and 2014, and in July they presented their new campaign 'Now it's time, united for a new country'. They aimed to mobilize the Catalan people for the self-determination vote scheduled on November the 9^th. There will be events throughout Catalonia and abroad during the 2 months before Catalonia’s National Day (September the 11^th). On that day, a massive demonstration in the shape of a giant V, for 'Votar' (To Vote) and 'Victòria' (Victory), will take place in Barcelona, which is expected to become the largest rally in the Catalonia's history. In addition, more than 30 ANC groups abroad are organising a worldwide campaign #votecatalonia. The political marketing firm Blue State Digital, which managed Obama's digital campaigns, is involved in the initiative.

On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, admitted that Catalonia will not be able to meet the strict 1% deficit target imposed by the Spanish Government for 2014. In fact, the Catalan Executive had previously warned on several occasions that this deficit target was not realistic, despite the great austerity efforts undertaken over the past four years. In addition, despite Spain's economic recovery of 2014 – which is led by Catalonia – and therefore the increase of taxable activity, the Spanish Government will reduce the Catalan executive's funds by €500 million this year while the deficit target becomes stricter. On Wednesday, the Catalan President, Artur Mas, already stated that, considering the austerity measures adopted since 2011, further budget cuts cannot be undertaken in 2014 without dramatically damaging basic public services such as healthcare and education. Instead of relaxing the deficit target or transferring pending funds and debts to the Catalan Government, the Spanish Finance Ministry will reduce the interest rate that the Autonomous Communities have to pay back to 1% for the loans of the Liquifidity Fund (FLA).

The President of the Catalan Government, Artur Mas, and the Spanish Prime Minister, Mariano Rajoy, finally met this Wednesday in Madrid to talk about the self-determination process and also about economic, social and institutional issues. Mas told Rajoy that a majority of the Catalan Parliament plans to hold a self-determination vote on the 9^th of November and they want to do it "reaching an agreement with the Spanish Government and within the legal framework". However, if Rajoy rejects negotiating such an agreement, Mas will use the Catalan legal framework to organise a legal vote. Rajoy emphasised that the consultation vote "is not legal and will not be legal" and therefore "will not take place". However, the Spanish PM did not present any alternatives to modify the current status quo. Besides, Mas presented Rajoy with a document with 23 issues not related to self-determination, such as Catalonia's under-budgeted public services, pending infrastructure works, and the Education Reform.

The historical leader of conservative Catalan nationalism, Jordi Pujol, who chaired the Catalan Government between 1980 and 2003, has been forced to give up all his honorary titles, his pension and his office as former President due to the fiscal fraud to which he confessed on Friday. Furthermore, all the opposition parties demanded that Pujol provide further explanations to the Catalan Parliament. The veteran politician explained that he had kept a fortune in an Andorran bank since 1980, which was not reported to the tax authorities during almost 35 years. The confession arrived after two years of rumours and news regarding his family's fortune and after several of his sons faced judicial investigations for alleged fiscal offenses. The news shocked Catalonia's society since Pujol was a widely respected figure, regardless of individual ideology, and played a crucial role in Spanish and Catalan politics.

Catalan politics and society are shocked after Jordi Pujol, President of the Catalan Government between 1980 and 2003, confessed on Friday evening that his family had €4 million in Andorra for 35 years which had never been declared to the tax authorities. Madrid-based media and politicians have immediately linked Pujol's scandal to Catalonia's self-determination with the aim to delegitimise the process since the retired politician had been the historical leader of the conservative Catalan nationalists. Parties supporting self-determination have distanced themselves from Pujol, including CDC, the Liberal party he founded in 1974 during Franco's dictatorship that now runs the Catalan Government. It is expected that Jordi Pujol (84) will resign as CDC's Founding President in the next few hours. His confession comes after his family and particularly two of his sons have been targeted by the media and judicial investigations for corruption since 2012.

According to a report published on Thursday by Barcelona's Chamber of Commerce, the Spanish Government's investment in infrastructure in Catalonia has dropped by 50% in the last 10 years, while it has been reduced by 25% throughout the rest of Spain in the same period. The President of the business association, Miquel Valls, stated that this reduction represents "a break"in the Catalan economy's growth, which could be in a better position to speed up the economic recovery. The report takes into account the executed investment made by the Spanish Government and its public companies in areas such as airports, high-speed railway or harbours. In 2006, the Spanish Parliament recognised "a historical" lack of investment in Catalonia when it approved the Catalan Statute of Autonomy and set a minimum investment percentage share to be made in Catalonia to compensate this in the next 7 years. This share was never respected.

On Tuesday, the Spanish Finance Minister, Cristóbal Montoro, rejected to review the funding scheme of the Autonomous Communities to grant them more resources, despite the fact that the Catalan Government is under-budgeted. On Wednesday, the Spanish Finance Ministry downplayed Catalonia's fiscal deficit by issuing the so-called fiscal balances, which calculate the inter-territorial fiscal transfers, posting a significantly low Catalan contribution. According to the Spanish Government's new calculations, Catalonia gave away €8.46 billion in 2011, representing 4.35% of its GDP. The figure is significantly lower than the Catalan Government's calculations: €15.01 billion and €11.09 billion, using two complementary methodologies used by the Spanish Executive in 2008 and agreed among independent university experts.

The much awaited meeting between the Spanish Prime Minister, Mariano Rajoy, and the President of the Catalan Government, Artur Mas, has finally been announced for Wednesday 30^th of July at 11am, after both politicians have stated during several months that they were open to talk. In the meeting they will discuss the institutional and social affairs related to the economic crisis, but they should also talk about the organisation of a self-determination vote in Catalonia. However, Rajoy has rejected to talk about it, as he considers it "an absurd" debate, despite the fact that 80% of Catalans want to hold such a vote and it is the main topic in Catalonia's political agenda, and probably in Spain's as well. Besides, on Monday 28^th of July, Rajoy will meet Pedro Sánchez, the new Secretary General of the Spanish Socialist Party (PSOE), who is also against Catalonia's self-determination and offered his will to reach agreements on "the territorial model".

Josep Antoni Duran i Lleida, who was the Secretary General of the centre-right pro-Catalan State two-party coalition CiU, quit his post on Monday in the middle of the tensions for the self-determination vote and Catalonia's potential independence from Spain. However, Duran will continue to lead the Christian-Democrat party within the CiU (UDC) and to be the CiU's strong man in Madrid. In addition, one of his closest allies within UDC, Ramon Espadaler, will take his place as Secretary General. Duran is against independence, although he supports building a Catalan State within a Confederated Spain as well as the self-determination vote scheduled on the 9^th of November. However, since a wide majority of people within the CiU would vote for independence (including the Catalan President, Artur Mas), internal tensions for Duran's personal stance have increased. Furthermore, there are increasing rumours that the CiU could break up for the first time in more than three decades.

Catalonia's National Alliance for Self-determination, which brings together some 3,000 entities including political parties, local governments, trade unions, employer associations, Chambers of commerce and NGOs, held on Friday its 3^rd meeting. The Alliance decided to send the Spanish Prime Minister, Mariano Rajoy, a letter to ask him not to block the self-determination vote scheduled for the 9^th of November, which would be organised under the Catalan legal framework. The document will highlight that the Constitutional Court stated that it did not have powers to solve issues arising from a part of Spain wanting to modify its political status and that "public powers, particularly the territorial ones" are those who have to solve it "through dialogue and cooperation". The letter will be sent in the coming days, ahead of the meeting between Rajoy and the President of the Catalan Government, Artur Mas. In this meeting, Mas will discuss this vote but also the institutional and social issues in Catalonia.

The Catalan Government, alongside the executives of the Basque Country and Castile and León, is leading the index of Autonomous Communities in terms of transparency, according to a study issued on Thursday by the organisation Transparency International Spain. These three Autonomies scored 100 out of 100 in the study, which was based on 80 indicators. They were followed by La Rioja (96), Galícia (94) and the Balearic Islands (93). The Region of Madrid occupies the last position in the ranking, with 65 points, behind the Region of Múrcia (79), the Canary Islands (80) and Castilla-La Mancha (84). The average across Spain is 88.6 out of 100. The study called upon regional governments to indicate the exact location of various data and information about elected officials, political appointments, organisation and personal wealth.

The Spanish Prime Minister, Mariano Rajoy, stated on Wednesday that he "will not join absurd debates" and will not "participate in the game" to negotiate Catalonia's self-determination vote since "the referendum is illegal and will not take place". Ironically, Rajoy accepted the request of the President of the Catalan Government, Artur Mas, to meet, but he has specifically rejected to talk about the purpose of the interview: the self-determination vote. In addition, the Spanish PM has downplayed the agreement backed by a two-third majority of the Catalan Parliament, which was answering a mandate resulting from the 2012 Catalan elections. On the same day the Spanish Finance Minister, Cristóbal Montoro, rejected "reinventing Spain" to better fit Catalans and therefore ruled out a deep Constitutional Reform. In addition, he also rejected setting up a new fiscal scheme for Catalonia, similar to the one that the Basque Country already has.