Politics

The number of unemployed people increased in Catalonia over the month of August, ending a positive trend of five consecutive months of drops. However, August is traditionally a month with an increase in unemployment, and this August’s has been the lowest increase since 2006.

The Catalan Finance Minister, Andreu Mas-Colell, asked the Spanish Government to set up a temporary short-term loan system if the announced Liquidity Fund for the Autonomies is not in place this September. The Catalan Government has been insisting on the urgent need to define and put into force this financial tool to provide the Autonomous Communities with liquidity now their access to international financial markets is impossible as they face unsustainable interest rates. In addition, Mas-Colell stated that it is very likely that more budget cuts will be needed in 2013 to meet the 0.7% deficit target. He also criticised the Spanish Government for imposing stricter deficit objectives for the Autonomies while Brussels gives Spain greater flexibility.

The first Congress of the different Pirate parties of Europe aims to create a Pirate Party at a European level. The Congress made clear the movement’s recipe to tackle the crisis: freedom of information, more transparency, and greater public participation. Forty representatives from throughout Europe met in Catalonia to discuss the future of the political group.

Until now, the EU was refusing to openly discuss the issue and was stating it was strictly an internal matter to be solved within Spain. The President of the European Commission, José Durao Barroso, admitted that “in the hypothetical case of a secession” of Catalonia “the solution should be found and negotiated within the international legal framework”. In this new scenario, Catalonia would not automatically be a member of the EU but this would be part of the negotiations. Barroso was ambiguous about the future of the European citizenship Catalan citizens currently have and said that “EU citizenship is additional”.

The Catalan Government stated it will meet the 1.5% deficit target for the Autonomies, although it considers it to be abusive considering they manage the main public services and the Spanish Government has kept for itself all the flexibility allowed by Brussels. In addition, the Catalan Government and the Catalan economy suffer from a perpetual lack of investment by the Spanish Government, which takes away 8.5% of Catalonia’s GDP each year, a quantity much higher than the deficit target. The day after Catalonia’s request for €5 billion from the Liquidity Fund, there was no recognition of Catalonia’s fiscal deficit at a Spanish or European level. There were only calls to continue with the austerity efforts. However, the Catalan Government warns of a “serious problem” if the Liquidity Fund is not in place on time by September.

The Spokesperson for the Catalan Government emphasised the money requested comes from Catalan taxpayers, since Catalonia pays €17 billion each year for services and investments in the rest of Spain. Nonetheless, the Catalan Executive stated it will meet the deficit targets and will follow the already approved austerity plan. The Spanish PM and leader of the People’s Party (PP) confirms it will “help Catalonia as we help the other Autonomous Communities”. However, the PP Spokesperson in Catalonia said the Catalan Government will have to accept whatever the conditions are. The Catalan Socialists want to know what the €5 billion will be spent on before supporting the decision. The Catalan Independence parties criticised the decision for having given away Catalonia’s autonomy.

Answering a letter from the Catalan President, the Spanish Prime Minister, Mariano Rajoy, stated he would study the proposal voted by the Catalan Parliament which aims to reduce the solidarity contribution from Catalonia to the rest of Spain and have all taxes raised by a Catalan-run agency. However, Rajoy had previously stated this issue was out of discussion, especially in the current economic context. A vast majority of the Catalan Parliament considers that it is precisely due to the financial stress provoked by the crisis that it is urgent to debate the excessive transfer of revenues from Catalonia to the rest of Spain. The Spanish PM also stated he has agreed to meet with the Catalan President to discuss this proposal, but he expects to talk about many other issues.

The ‘number two’ of the Centre-Right Catalan Nationalists (CiU), Josep Antoni Duran i Lleida, immediately replied that the Spanish Government is “the one creating mistrust” because of “its discrepancies” and Mariano Rajoy’s “absenteeism”. He also criticised the Spanish Government for not putting in place an action plan to promote employment, “despite having the tools to do so”. Soraya Sáenz de Santamaria, the Spanish Government’s Deputy Prime Minister and Spokesperson, has blamed Catalan and Basque nationalisms for “promoting a climate of instability”. They create “mistrust and insecurity”, which “keeps away foreign investment” and “job creation”, said Sáenz de Santamaria the week Basque elections have been announced.

The trade union UGT has calculated that 478,969 jobs have been destroyed in Catalonia between the June 2007 and June 2012. Furthermore, the union fears a “layoff avalanche” next autumn in the public sector.

The Spanish Social Security has published the list with the 417 drugs that from September will no longer be subsidised in order to reduce public spending and meet deficit targets. Most of them are some of the most consumed medicines for minor symptoms, such as heartburn, muscle pain, or diarrhoea. Since the measure is not popular among doctors, the Catalan Health Minister, Boi Ruiz, said that more expensive drugs with similar effects but not included in the list may now be prescribed, which would increase pubic healthcare spending instead of reducing it.

The President of the Catalan Government, Artur Mas, also talked about the delays of August payments to social care organisations, and he “hoped to be in a better situation” next month. However Mas could not give “a total guarantee” as it depends on whether the Spanish Government activates the Liquidity Fund for the Autonomies. In fact, Mas urged the Spanish Government to do so at the end of this month and said it is “illogical” to make a grand announcement about the measure and then not implement it.

The Catalan Government will allow universal access to community health centres, despite the Spanish Government’s decision. Autonomous Communities are those managing the public healthcare system. After announcing that immigrants would not be able to access the service without contributing to the Social Security system, the Spanish Government is now preparing formulas allowing them to continue accessing the public healthcare system if they pay the fee. The Spanish Health, Social Services and Equality has confirmed that foreign people less than 65 years old will pay €710 per year and those older will pay €1,860. Access will be free in emergencies as well as for pregnant women and minors.

The Spanish Prime Minister, Mariano Rajoy, has announced further budget cuts for 2013 and 2014, totalling an additional €89.1 billion. These budget cuts are to be added to those implemented between 2010 and 2012. Autonomous Communities will have to cut their budget by an additional €19 billion in 2013 and 2014, which is added to the €15 billion already announced in Spring affecting education and healthcare. However, no details of the €19 billion plan were provided. Rajoy stated that in 2014 the Spanish economy will grow by 1.2%, leaving the recession behind. With this plan, Spain’s public deficit for 2013 will be set at 4.5% and at 2.8% for 2014.

The Catalan Social Affairs Minister, Josep Lluís Cleries, stated before the Catalan Parliament that €70 million had not been paid on time to health and social care organisations this August. He said he was sorry for the situation but underlined that the €50 million destined for private citizens had been paid. The Catalan Finance Minister, Andreu Mas-Colell, emphasised that, if the Spanish Government does not activate the Liquidity Fund for the Autonomous Communities and similar measures, he cannot guarantee the situation will not be repeated in the future. However, he said to be confident the Spanish Government will put these mechanisms in place soon. The Left-Wing opposition parties had requested the urgent hearings.