Politics

Andreu Mas-Colell, former Harvard Professor and the current Catalan Finance Minister, travelled to London to meet with financial representatives. The objective is to explain, first-hand, the Catalan Government’s austerity plans and its efforts to reduce the deficit and to foster the economic recovery. Mas-Colell met with City investors, banks and media, such as the ‘Financial Times’.

The Chairman of the EP’s Transport Committee, the British MEP Brian Simpson, has stated that building the Mediterranean Railway Corridor for freight and passengers is “absolutely imperative and crucial” for the European economy. On the contrary, the third corridor going through the Central Pyrenees, linking Zaragoza and Toulouse is “not-viable and not-needed”. “Drilling mountains is very very expensive”, he warned. The Mediterranean Railway Corridor would link Central and Northern Europe with Spain’s Mediterranean ports by international-width tracks. In addition, it would include a high-speed train service for passengers.

The Catalan President, Artur Mas, announced that he along with ministers, deputy ministers, and directors-general would not receive the Christmas bonus this year. The measure affects all the Catalan Government’s higher-ranked staff and is meant to send a message of austerity. 350 people will see their salary reduced, saving 1.8 million euros of public money. It is an answer to doctor and nursing unions, who had asked politicians to reduce their salaries. Last year, higher-ranked officials experienced a 15% salary cut.

According to some MEPs, the international-width high-speed railway corridor for freight and passengers along Spain’s Mediterranean coast that connects ports, industrial centres and tourist resorts would be included in the next priority map of European transport networks. The necessary infrastructural project for the EU economy would link Central and Northern Europe with Spain’s ports that trade directly with North Africa and Asia, enabling trains going non-stop on international-width railway. The EU would pay for 25% of its cost. The Central Corridor passing through Madrid, Zaragoza and the Central Pyrenees would fall from the list, as economic criteria are decisive in times of economic difficulties. However, the definitive list will be released on October 19th.

September has been a bad month for employment over the last number of years, but this past September is the worst in the last 11 years. The Spanish Government has blamed the budget cuts undergone by the Autonomous Communities for the unemployment increase. The Spokesperson for the Catalan Government considers Madrid’s statements as “offensive” and “pitiful”, and he stressed that the Spanish Government had asked them to double their public spending cuts. He also added that the Spanish Government has not paid the money that it owes.

The Debate on the State of the Nation ended at the Catalan Parliament with the approval of several resolutions. After three days of debate, the resolutions were voted on Friday. One of them condemns the way in which the Spanish Constitution amendment was negotiated and passed, as it did not take into account parties that participated in the Constitution drafting and approval, and it also interferes with the financial autonomy of Catalonia. Another motion demands the Catalan Government to present the budget for 2012 before October 10th next.

In addition, he warned about an ongoing re-centralisation process, going against the consensus of 1978, and whose next step “will be the electoral reform”, which “will sentence us [Catalan nationalists] as galley slaves”. The day that King Juan Carlos was ratifying with his signature the amendment to the Spanish Constitution, one of the main law’s six founding fathers criticised the reform. Miquel Roca, who represented the views of the Catalan nationalists in 1978 criticised a reform approved only with the support of the two main parties in Spain, both defending centralist stances.

The Catalan Government has approved the new Law of Budget Stability, which foresees a gradual and significant reduction of the deficit in the following years. The law permanently fixes an allowed deficit limit of 0.14% of Catalonia’s GDP from 2018, two years earlier than the deadline required by the Spanish Constitution’s modification. According to the Catalan Finance Minister, Andreu Mas-Colell, the law demonstrates Catalonia’s “strong commitment to budget stability”. In addition, the law creates a fund to return public debt, which will be filled with any additional revenues or budget surplus.

The Catalan President Artur Mas has asked the European Union “not to forget about a land that feels European and needs deeper and closer ties with Europe” in the ‘FERRMED Trans-European Cluster Conference’ in Brussels. Previously he has met with the Vice President of the European Commission, responsible for Industry and Entrepreneurship, Antonio Tajani. The Mediterranean Railway Corridor would directly link Central and Northern Europe with Spanish ports and subsequently North Africa.

The current Catalan Government, which took office last Christmas, hired an external auditor to better understand the state of the public finances. Deloitte has increased the Government’s deficit for 2010, from 3.86% to 4.2%, in line with the last data known and internally audited. The Catalan Minister for the Economy, Andreu Mas-Colell, explained that “one out of every three euros spent [in 2010] was not covered by tax revenues”. The main opposition party, which formed part of the previous Government and was in charge of finances, stated that their management cannot be made responsible for the deficit increase, as the deficit calculation criteria has changed.

The Spanish Constitutional Court has accepted to make a decision on the Spanish Government’s appeal against the Catalan law promoting the Occitan language in the Val d’Aran County, in the Pyrenees. The Val d’Aran has autonomy status within Catalonia, considering its historic links with the Occitan culture. It is the only place where Occitan has the status of preferred co-official language. Now, this status has been cancelled because of the Spanish Government’s appeal. The Catalan Minister for Culture considers the appeal “an attack against language diversity”.

The Conference of the Regional Legislative Assemblies of the European Union (CALRE) has met in Barcelona to discuss their interaction with the European Commission. The association of regional parliaments with legislative powers, such as those in Catalonia, Scotland, North Rhine-Westphalia or Flanders, has asked to participate in the drafting process of European directives.

The presidents of Catalonia, the Valencian Community and the Region of Murcia met in Barcelona to ask the Spanish Government to prioritise the construction and inclusion of the Mediterranean Railway Corridor in the European Transport network. This infrastructure is essential for both the Spanish and European economies, as it would transport freight and passengers non-stop from Gibraltar to Stockholm, passing through Valencia, Barcelona and Lyon. In times of public deficit, there is not enough money to build a railway corridor passing through Madrid, and the Spanish Government has to prioritise the Mediterranean Corridor, which links the main export and industrial centres in the country with Europe.

As carried out on two other occasions in the last year, the Catalan Government is preparing to release of 3,800 retail bonds to get cash. Financial sources informed ACN about the operation, which has not been confirmed by the Catalan Ministry of Economy. The bonds would be offered before November 21st, the day that the bonds issued by the former Catalan Government in autumn 2010 expire.

The Catalan Government appealed the order of the Catalan Supreme Court, which insisted that the Catalan school system should be modified in order to comply with the Spanish Supreme Court’s sentence from last December to include Spanish as language of instruction. With the Government’s appeal, the Court’s deadline is automatically suspended, until the Court decides on the appeal. The appeal is based on two sentences from the Spanish Constitutional Court validating the Catalan school model, as well as on the linguistic immersion principle which guarantees social cohesion and equal opportunities.