Politics

Two earthquakes of 5.1 and 4.5 Richter degrees hit the Murcia Region (South-East Spain) on Wednesday afternoon causing at least 9 deaths and injuring 300 people. 30,000 people spent the night in the streets, fearing further shocks. All the Catalan parties suspended their electoral campaigning for 24 hours and a minute’s silence spread across Catalonia.

The Spanish Government risked losing an important vote at the Parliament if members of the Catalan Socialists had voted the same they did in the Senate. However, they voted together with the Spanish Socialist Party (PSOE). By obliging the PSC to choose between its vote coherence and its loyalty to the PSOE, the Centre-Right Catalan Nationalist Coalition CiU dislocated the PSC in the middle of the municipal election campaign. The rejected motion had asked the Spanish Government to reconsider its stance and pay the Competitiveness Fund’s 1.45 billion euros in 2011.

On May 22nd, Catalans will vote in their local elections. According to the recent polls the Centre-Right Catalan Nationalist Coalition (CiU) is well positioned to win in many cities, towns and villages across Catalonia, and in particular in Barcelona. CiU’s candidate may become the next Mayor of Barcelona after 32 years of Catalan Socialist Party (PSC) leadership. The same change could happen in Girona, where polls indicate a tie. However it seems the PSC will maintain control of Lleida and Tarragona City Councils. The People’s Party (PP) speech is of major significance with their focus being on immigration and security.

The President of the Catalan Government, Artur Mas, presented a road-map with 474 objectives to be reached during his term in office. The Catalan Government’s plan faces three main crises: the economic slowdown, the relationship between Catalonia and Spain, and citizen trust in the democratic institutions. The strategic plan is organised along eight main axes, with economic recovery being the first priority.

The Catalan Minister for Finance Andreu Mas-Colell has unveiled the main guidelines for the budget proposal for 2011, which he said are shaped with “austerity, seriousness and credibility”. Public expenditure will be cut by 10%, although he warns that it is impossible to meet the 1.3% deficit objective, as it is a transition year and some revenues have not been paid. However, he insisted that the 2012, 2013 and 2014 objectives will be met. The Spanish Government warned that not meeting the deficit objective for 2011 is not an option. Mas-Colell also explained he has not included, not even as a pending revenue, the 1.45 billion euros for the Competitiveness Fund.

Elena Salgado, the Spanish Vice President for Finance, wanted to end the debate and discarded transferring the 1.45 billion euros from the fund in 2011. This is the amount asked for by the Catalan Government. The Catalan Minister for Finance has been asking for “co-responsibility”. The same day, the Spanish Senate approved a motion asking the Spanish Government to pay this fund this year as it is its legal obligation. The Catalan Government prefers political dialogue than taking the issue to the courts, as suggested by the Catalan Socialist Party.

The Catalan Government received 3.2 billion euros last week from retail bonds, 0.5 billion euros more than the initial quantity released on the market. In addition, it will have to issue more debt and it needs the agreed money transfers from the Spanish Government. However, the Spanish Deputy Minister for Finance has rejected the request from the Catalan Government of 1.45 billion euros from the Competitiveness Fund and has warned Catalonia not to include that amount in this year’s budget. The Spokesperson for the Catalan Government accuses the Spanish Government of “acting as a defaulter”.

Xenophobic parties such as ‘Plataforma per Catalunya’ and ‘Vía Democrática’ are growing in the Left-Wing bastions near the Catalan capital. They are still very marginal but for the first time they could win some seats in Barcelona neighbouring towns.

The Catalan Parliament rejected a law proposal on Catalonia’s independence three days after the popular consultation process on the issue ended with a clear “yes”. This civil society voting was not an official referendum and it was not organised by public powers. It took place over the course of 18 months, and Barcelona closed the process on Sunday. 21% of the electoral census turned out (885.000 citizens) and 90% of the voters backed Catalonia’s independence from Spain. Members of the Catalan Government cast their vote, including the President.

The Catalan Government is cutting the Healthcare System’s expenditure by 10% because the public deficit needs to be drastically reduced this year. Health professionals started protesting last week because they fear a worsening of services and working conditions. The Catalan Minister for Health, Boi Ruiz guaranteed basic health services, but the protests continue.

In order to attain liquidity and taking into account the difficulties getting money from the international markets, the Catalan Government is selling 2.7 billion euros worth of treasury bonds. These will be bought by citizens at bank branches. One-year bonds have a 4.25% interest rate while for two-year bonds it is 4.75%. At the end of the first day of sales, 29% of the bonds were sold. The measure was already taken last October by the previous Government and the totality of the bonds were sold quickly.

The budget austerity measures and the reduction of the public deficit have forced the restructuring of the Catalan Government’s offices abroad and have also impeded the opening of new ones. The Catalan Vice President Joana Ortega explained these changes to the Catalan Parliament’s External Action and European Union Committee.

The leader of the Conservative and Spanish Nationalist People’s Party visited the Catalan Parliament today. There, he supported the Catalan Government’s claim and asked Spanish Prime Minister Zapatero to fulfil his legal obligations towards Catalonia and pay the money his Government owes.

In the last elections, the elimination of the tax was one of the main promises of the Centre-Right Catalan Nationalist Coalition, Convergència i Unió (CiU), which controls the Catalan Government. From January 1st 2011, first and second degree relatives will have a 99% bonus on this tax. The decision has been taken in the middle of the debate about public expenditure cuts.

On the same day that Catalan hospitals presented their plans to reduce their budget by 10% and cut several services, the Catalan Government’s Spokesperson sent a strong message to Madrid saying that "enough was enough." The Spanish Government answered the calls by the Catalan Executive by saying that if it does not meet the 1.3% deficit objective for 2011, it will run out of cash. Madrid is asking for greater budget cuts. Almost all Catalan political parties, including the People’s Party, back up the Catalan Government, the main exception being the Socialist Party, which supports Prime Minister Jose Luis Rodriguez Zapatero.