Politics

Spain’s Constitutional Court has ruled against the Catalan Parliament’s Law on Consultation Votes, approved in September, and the President of the Catalan Government’s Decree calling for a consultation vote on independence on 9 November last. The Constitutional Court had already temporarily suspended both legal measures in October, but it still was yet to issue its definitive verdict. After the temporary suspension, the Catalan Government promoted an alternative and symbolic vote on independence run by 40,000 volunteers, also on 9 November, in which 2.35 million people participated despite the Spanish authorities’ full opposition and even threats. The Catalan President, Artur Mas, stated that the Constitutional Court’s final decision “leaves 27 September [early elections] as the only way to consult the Catalan people” about their collective future. Meanwhile, the Spanish PM, Mariano Rajoy, highlighted that the Court’s decision “has been adopted unanimously” and that “governments have to honour laws”.

In the annual Debate on the State of the Union in the Spanish Parliament, Prime Minister Mariano Rajoy repeated that he will “never” accept putting Spain’s unity in question. He said that the next Catalan Parliament elections, scheduled for 27 September, are not a ‘de facto’ referendum on independence, as pro-independence parties are claiming. However, Rajoy said he is willing to talk but only if “the law is always respected”. The Spokesperson of the centre-right pro-Catalan State coalition CiU, Josep Antoni Duran i Lleida, emphasised that “not making any proposal” to address Catalonia’s claims is “political negligence”. Furthermore, he regretted that the Spanish Government is not respecting the law when it is recentralising powers and not respecting Catalonia’s self-rule. The Spokesperson for the left-wing Catalan independence party ERC, Alfred Bosch, told Rajoy that “the sooner he acknowledges” that there is an independence referendum in September, “the sooner we will find solutions”.

Jordi Pujol Ferrusola, the eldest son of former Catalan President Jordi Pujol, has testified before the Catalan Parliament’s commission investigating fraud and corruption. He did so after the testimonies of his father and mother, while all 3 have been indicted and are in the middle of judicial processes for alleged fraud. Unlike his parents, Pujol Jr answered most of the questions posed - except those related to money the family had kept in Andorra for 34 years without informing the Spanish tax authorities. Pujol Jr said he will explain this directly to the judge in his testimony scheduled for the 26^th of March. However, he did speak before the parliamentary commission for 4.5 hours about some of his business activities and his accumulated wealth. He also denied having operated from fiscal havens (besides the family money in Andorra) and having practiced influence peddling or any corrupt activity profiting from his father’s position. Besides this, he also emphasised he is an “intimate friend” of the current Catalan President, Artur Mas, despite the latter having denied this a few days ago.

Before the Catalan Parliament's commission investigating fraud and corruption, former President of the Catalan Government Jordi Pujol has testified in order to address his family's alleged fiscal fraud. Pujol was asked to talk before the parliamentary committee despite having been indicted by the judge and having already testified in front of her in January. Pujol, who ran the Executive between 1980 and 2003, did not add any new information and refused to answer many questions, referring to his previous statement before the judge and the previous hearing before the Catalan Parliament in September. He criticised the current parliamentary commission for not sufficiently proving their accusations., Pujol's wife, Marta Ferrusola, who is also indicted and who has previously testified before the judge, also spoke before the parliamentary commission. Ferrusola did not answer many questions but stressed that she "never" travelled to Andorra to manage funds.

A day after the President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, announced his plan to further develop the so-called state structures before the 27 September elections, the leader of the left-wing Catalan independence party ERC, Oriol Junqueras, has once again requested to be part of the Executive and sit in Cabinet. Junqueras justified his request in order “to guarantee the indispensable state structures”, such as Catalonia’s own tax administration and Social Security system. The embryonic frame of such structures should be created before the next Catalan elections, which will be called early and will be transformed into a ‘de facto’ referendum on independence from Spain. On Tuesday, Mas had already ruled out the possibility of the ERC sitting in Government and, on Wednesday, the Catalan President stressed that the current Cabinet will only be in office for the next 6 months.

On Monday, the National Executive Commission of the centre-right pro-Catalan State Coalition CiU, which is its leading committee, has explicitly referred to last week's crisis. Last Tuesday, the CiU MPs in the Spanish Parliament voted differently, showing a split within the coalition, coinciding with the two integrated parties: the Liberal and pro-independence force CDC (the largest one) on one side and the Christian-Democrat and pro-Spanish unity party UDC on the other. The CiU's Spokesperson in the Spanish Parliament and leader of the UDC, Josep Antoni Duran i Lleida, believed the CDC MPs had not obeyed his voting instructions to support the Penal Code's reform, while the Liberal MPs were insisting that the CiU group had previously agreed on abstaining. Now, the CiU leadership considers the crisis to be over and highlighted their "full support" for Duran i Lleida.

Government Spokesman Francesc Homs has stated that Catalan President Artur Mas’ hearing in Parliament “cannot convince” the parties that accused him of misconduct “without any proof”. “If the one accusing doesn’t bring any evidence and expects to be convinced by the testimony of someone by whom he doesn’t want to be convinced...we find ourselves in an impossible situation”, Homs argued after parties such as the PP said Mas’ explanations in the Anti-Corruption Commission on Monday were not enough.

The conservative Spanish nationalist People’s Party (PP), which runs the Spanish Government, has appealed against the Catalan Executive’s 2015 budget bill, which will delay its definitive approval and implementation by up to one month. The new budget was supposed to be approved this week by the Catalan Parliament, after months of negotiations between the governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC. The new bill will increase social spending and also increase funds for Catalonia’s own tax administration and for the launch of a Catalan Social Security agency. The Catalan Government accused the PP of “parliamentary filibusterism” and warned them that the appeal “will not stop the [self-determination] process” nor the creation of “state structures”. However, it will damage families in need, as it will delay the implementation of new social programmes.

The Catalan Government’s Deputy Minister for External Affairs, Roger Albinyana, announced the Executive’s aim to have a network of “about 50 delegations” throughout the world, representing Catalonia’s political, business and cultural interests abroad. The Catalan Government currently has 7 delegations abroad, after the new representations in Rome and Vienna start to work on Monday, when the representatives were appointed. The 5 others are located in Brussels, London, Paris, Berlin and Washington. In the coming “months and years”, the Catalan Government will continue to open new delegations. Regardless of the hypothetical independence from Spain, the Catalan Executive already has the powers to have its own External Action policy, recognised by the Catalan Statute of Autonomy from 2006, although with many limitations.

Barcelona High Court judge Santiago Vidal, along with a team of other law experts, has presented a proposal for a future Catalan Constitution in the event of independence with the aim to steer debate. The draft includes 97 articles according to which Catalonia would become a parliamentary republic with no army. However, this proposal can be changed as a webpage has been created through which citizens can table amendments online. Along with this draft, two other constitution projects have been presented: ‘constitucio.cat’ created by a team of Catalan law experts living abroad, and another constitution draft presented by ‘Lawyers for independence’ from the National Assembly of Catalonia (ANC). Spain’s Judicial Power Council (CGPJ) has called for the expulsion of Santiago Vidal from the Judiciary for his pro-independence initiatives.

According to a study by the Professional Association of Economists of Catalonia (Col·legi d’Economistes), an independent Catalonia would obtain a much better grade from rating agencies than it currently gets, taking into account its diversified economy and higher GDP per capita than the European average. Specifically, it would obtain an A+ rating, 7 levels higher than the current BB ‘junk bond’, using Standard&Poor’s classification. The study highlights that without the current fiscal deficit with the rest of Spain, the rating would be “at least” that of the Basque Country and would enable the Catalan Government to access the international financial markets. Catalan taxpayers pay much more to the Spanish Government than the amount they get back in terms of services and infrastructure; a fiscal deficit equivalent to between €13bn and €17.5bn per year.

Adam Price, the former Member of Westminster Parliament and Harvard University expert, believes it “would be very difficult” to argue that an independent Catalan state would not be prosperous. In fact, he thinks Catalonia “would have done better” without being part of Spain. Price is an acclaimed economist and political expert and the author of a report written for Harvard University on the economic potential of smaller countries. In the report Price examines how smaller European economies have a higher chance of gaining economic success than larger ones. Studying small European nations, Price believes, without a doubt, that an independent Catalonia would have huge potential in the long run. However, he also stresses that “transition cost” are another debate.

After confessing that his family had kept a fortune in Andorra without informing tax authorities for 34 years, the President of the Catalan Government between 1980 and 2003 and founder of the centre-right Catalan nationalist coalition CiU, Jordi Pujol, his wife Marta Ferrussola and 3 of their 7 children (Marta, Mireia and Pere) testified before the judge investigating the case. They are indicted for alleged fiscal fraud and money laundering. During more than 2 hours, Pujol (aged 84) answered the judge’s and the anti-corruption public prosecutor’s questions. He insisted that his father had left a hand-written letter with instructions about 140 million pesetas secretly left in Andorra in 1980 for his wife and children, but not him, coming from his “illegal” activities selling currencies during the dictatorship. However, the defence has not yet presented any supporting documents. Besides this, 3 of Pujol’s other sons are indicted for other fiscal fraud and corruption cases.

The current President of the Catalan Government and leader of the centre-right pro-Catalan State coalition CiU, Artur Mas, will have to testify as a witness before the Catalan Parliament’s committee investigating the alleged fiscal fraud and possible corruption committed by the former Catalan President and CiU’s leader until 2003, Jordi Pujol. Artur Mas is Pujol’s political heir and was the ‘number 2’ in his last cabinet. Pujol, who uninterruptedly chaired the Catalan Executive between 1980 and 2003, confessed last July that his family had kept a fortune in Andorra for the last 34 years without informing tax authorities. The confession shocked Catalan society, since the historical leader of the conservative Catalan nationalists was a crucial figure in the fight against Franco’s dictatorship, the transition to democracy and the recovery of Catalonia’s self-government. Now, Pujol, his wife and 6 of their 7 children are being investigated by the judiciary for alleged fiscal fraud and several corruption scandals. 

The governing centre-right pro-Catalan State coalition CiU and the left-wing Catalan independence party ERC have reached an agreement to approve the Catalan Government’s budget for the current year. After the President of the Catalan Government and CiU leader, Artur Mas, and the ERC’s President, Oriol Junqueras, reached an agreement on holding early elections on 27 September as a plebiscite on Catalonia’s independence, both parties reopened the budget talks. After 10 days of negotiations, they have reached a definitive agreement, which includes a €100 million fund that will bring more resources for social programmes. They have also agreed to stop paying some allowances to senior officials. Furthermore, they will add €10 million to the development of Catalonia’s own tax administration and they will also create the Agency of Social Protection, which is to manage Catalonia’s Social Security system.