Politics

Robert Casajuana warns, however, that Spain is "getting dangerously close" to offering yields of 7% for 10 year bonds, the point, according to him, "of no return"

Characterised as one of the most powerful men in combating the Spanish financial crisis, Catalan President Artur Mas presents his forceful economic strategy to the US newspaper

László T?kés, from the Hungarian minority in Romania and member of the European People’s Party, supports the “linguistic rights” of minorities in front of a European Union “sometimes too ignorant”. “I don’t like integration being replaced by assimilation”, he stated.

The President of the Palestinian National Authority, Mahmoud Abbas, supports the Union for the Mediterranean initiative. The UfM decided to build its first project in Gaza: a desalinisation water plant and distribution system. Abbas will meet with the new Secretary General of the UfM, Youssef Amrani, who took office last week.

The deal introduces new restrictions on public spending while protecting health, education and social services. The conservatives have asked the Government to change its foreign policy strategy and make it more commercially oriented.

The Spanish Minister for Public Works, Jose Blanco, attended the end of the drilling works of the High-Speed Train tunnel that will cross Girona, part of the line that will connect with the French border. The Mediterranean Railway Corridor is a long running issues for Catalonia, Valencia, Murcia and Andalucía. It would link the Straights of Gibraltar, the harbours of Barcelona and Valencia, and Central and Northern Europe, allowing a freight train to go from Algeciras or Barcelona directly to Hamburg or Stockholm.

The Organisation for Economic Cooperation and Development’s Senior Economist for Spain thinks that the Catalan Government’s budget cuts are going “in the right direction”. He also denied that the Autonomous Communities’ deficit puts Spain solvency’s at risk.

A similar change happened in Girona Town Hall, where Carles Puigdemont, also from CiU, also became the first non-Socialist Mayor in the last 32 years, since the restoration of democracy. Barcelona and Girona Town Halls were constituted later than all the rest because of appeals regarding the electoral vote and the number of elected councillors. These two Mayoral offices consolidate CiU’s hegemony in Catalonia, after last May's municipal elections and after last November's Catalan Parliament elections.

However, if the question is open to other options, 33% would prefer a Catalan State within a Federal Spain, 31.8% the current situation as an Autonomous Community and 25.5% want Catalonia to be an independent nation. The poll results also show that 75.5% of Catalans want the Catalan Government to raise all the taxes, while only 18.2% prefer the current system through which the Spanish Government raises the main taxes. The poll was compiled by the Catalan Polling Centre (CEO), which is managed by the Catalan Government.

PM Zapatero today proposed an expenditure limit for the Autonomous Communities before the Spanish Parliament . The Spokesperson for the Catalan Executive considers it an attack to self-governance and fiscal autonomy. In addition, he stressed that the Catalan Government is the only administration in Spain, at all levels, that has cut its expenditure by 10% in one year. He also asked the Spanish Government to make its own adjustments and pay what it legally owes to the Communities, and to Catalonia in particular.

The International Monetary Fund wants the Spanish Government to “strengthen” the labour market reform, not give up on spending cuts and restructure the financial system. The same day, the Bank of Spain's Governor, Miguel Angel Fernández Ordóñez asked the Spanish Minister for Economy to be “stricter” on the Autonomous Community government’s deficit reduction. The Catalan Minister for Finance said on several occasions that Catalonia would meet the deficit objective for 2011 if the Spanish Government showed some institutional loyalty and paid the money it legally owes to Catalonia.

The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.

The Catalan Parliament will also file a formal complaint regarding the violent protests that took place last Wednesday in Barcelona. Protesters tried to besiege the Parliament and impede the entrance of MPs, some of whom were insulted, threatened, pushed and sprayed. The Spanish Penal Code states that these type of actions are a felony and offenders could face between three and five years in person. Catalan Police had to protect the Parliament and the MPs, with a deployment of 600 police officers. All political parties condemned the violent acts by protesters and most of the opposition said that the deployment of security forces was too small.

The Catalan People’s Party (PPC) abstained and facilitated the rejection of the motions to substitute the budget bill presented by the Catalan Government, run by the Centre-Right Catalan Nationalist Coalition CiU. The motions had been presented by four parliamentary groups for a range of reasons, but mainly because the Government’s budget proposal was cutting too much social spending while it did not make enough efforts to raise revenues.

The Catalan Parliament was under siege by the “indignats” protesters, who have been camping on Catalunya Square for the last month. They tried to impede MPs' access to the park where the Parliament is located. Some MPs arrived on foot and were insulted, pushed or sprayed. Others, including the Catalan President and the Parliament’s President, had to arrive via helicopter or inside police vans. The ‘indignats’ movement condemned “the isolated violent episodes”, but said they have the right to block the Parliament. Today the first voting on the budget was held, which reduces public spending by 10%. Despite the protests, the parliamentary debate took place.