budget 2017

Spain’s budget for 2017 allocates €1.14 billion to invest in Catalonia, €30 million less than last year. However, as a percentage, the figure represents 13.4% of the total, which is higher than in 2016, which saw only 10.7% investment for Catalonia. The allocation is still below Catalonia’s contribution to Spain's GDP, which is 19%. Although most of the investment is oriented toward infrastructures, the figures are a far cry from the major investment that Spanish President, Mariano Rajoy, announced last week for Catalonia. Indeed, he said that €4.2 billion will arrive in Catalonia by 2020. Spain's Minister of Finance, Cristóbal Montoro, admitted that the budget doesn’t include the promised measures and assured that the investment “will move forward in 2018”.

The Catalan budget for 2017, which includes an allocation of €5.8 million to carry out the referendum on independence which the Government committed to call next September, has been taken before the court. The Parliament’s legal services already warned on the day the bill was passed that by doing so the chamber could be ignoring the TC. Indeed, the Spanish body called to impede or block any initiative emerged from the pro-independence declaration of the 9-N, which was already suspended.  The pro-independence parties in the Parliament, governing cross-party ‘Junts Pel Sí’ and radical left CUP backed the bill, which besides considering the referendum, it allocates €17.8 billion to social expenditure. The main parties in the opposition, Spanish Unionist Ciutadans, Catalan People’s Party (PP) and Catalan Socialist Party (PSC) announced this Friday that they will join the Spanish Government’s initiative and present an appeal to the bill.

The pro-independence parties in the Catalan Chamber, governing cross-party ‘Junts Pel Sí’ and radical left CUP have passed the 2017 budget. The bill has been described as the last budget of the autonomic period, since it foresees calling a referendum on independence next September. Last June, CUP refused to pass the bill for 2016 which led to the vote of confidence promoted by Catalan President, Carles Puigdemont. They considered the numbers presented then to be “too autonomic” rather than responding to the pro-independence aspirations of Catalonia. After a new draft was presented last November, increasing the social expenditure and reinforcing the government’s commitment to call a referendum, CUP have accepted the bill. However, they have urged the Catalan Government to announce the date and the question of the referendum as quick as possible.

The Council for Statutory Guarantees, the body responsible for checking whether the Catalan Government’s regulations comply with the Catalan Statute of Autonomy and the Spanish Constitution, approved the additional allocation included in the budget for 2017 in order to call a referendum on independence in September. In particular, the bill establishes €5 million for electoral processes and €0.8 million for participation. However, it has found unconstitutional the 31^st additional provision of the draft, which establishes that the Government has to allocate the spending to carry out the vote. Despite being unanimous, the resolution of the Council for Statutory Guarantees is not binding, since it is an advisory body. However it has already postponed the passing of the bill, which was due to be put to vote last February.

Spanish Unionist ‘Ciutadans’ and the Catalan Socialist Party (PSC) will take the budget bill for 2017, which was due to be put to vote this February, to the Council for Statutory Guarantees. The function of the body is to check whether the regulations of the Catalan Government comply with the Catalan Statute of Autonomy and the Spanish Constitution. The spokesperson of ‘Ciutadans’ and PSC in the Parliament considers the items allocated for calling “a new 9-N” to be against both the Catalan Statute of Autonomy and the Spanish Constitution. Moreover, they noted that other budget lines are “unclear” and may be “hidden” in order to ultimately hold the referendum in September 2017, as the Catalan President, Carles Puigdemont, has repeatedly announced. 

Catalan President, Carles Puigdemont, insisted this Thursday on the importance of passing the budget for 2017. If the bill, which will be put to vote in February, doesn’t receive the required support in the Catalan Chamber, “the Government can’t continue, for reasons of dignity and democratic coherence”, Puigdemont stated. Thus, he called for pro-independence radical left CUP, the main partner of cross-party list ‘Junts Pel Sí’ in the Government to have “courage” and allow the bill to be passed. CUP already vetoed the previous budget last summer, forcing the extension of the 2015 budget, after considering it “too autonomic” and not proper of a state which aims to be independent.

The Government’s draft budget for 2017 presented to the Parliament's President, Carme Forcadell, this Tuesday includes an allocation of €5.8 million to guarantee that the pro-independence referendum scheduled for September will be carried out. In particular, the bill establishes €5 million for electoral processes and €0.8 million for participation. Moreover, the budget also includes hidden allocations which would allow the referendum to take place despite the inevitable suspension of the Spanish Constitutional Court (TC). In 2014, the budget also allocated €6 million oriented toward holding the 9-N symbolic vote in independence. At that time, the allocation was included within the Public Administrations department. However, this time the allocation would be an explicit competence of the Catalan Ministry for Economy and Tax Office. 

Catalan President, Carles Puigdemont, insisted on the Government’s will “to collaborate with a Spanish State which would allow Catalans to vote”, but warned that the offer to hold a binding referendum on Catalonia’s independence “doesn’t expire, but [it] won’t paralyse us either”.“It’s either a referendum or a referendum”, he stated before the Parliament during the first phase of the vote of confidence and forecast that the vote will take place “in the second half of September”. The Catalan President called on MPs to start “a chain of confidence which will not end tomorrow [when the vote of confidence will take place] but continue until Catalonia becomes an independent country”. In this sense, he warned those who won’t support the budget for 2017 not to support him on Thursday and “avoid further wasting of time”. Although Puigdemont assured that he was “not afraid” of the vote of confidence result, he also insisted that he will call new elections if he doesn’t obtain enough votes.