budget reduction

The Catalan and Spanish Governments disagree again over the 1.45 billion euros in the Competitiveness Fund

April 27, 2011 12:43 AM | CNA / Gaspar Pericay Coll

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”.

The Catalan Government issues 2,700 million euros in retail bonds to generate cash

April 12, 2011 01:58 AM | CNA / Gaspar Pericay Coll

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 Catalan Government practically eliminates the Inheritance Tax for close relatives, which means 102 million euros less in 2012

April 6, 2011 02:31 AM | CNA / Gaspar Pericay Coll

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.

The Catalan Government says “enough is enough” to further public expenditure cuts, but Madrid keeps putting on the pressure

April 1, 2011 01:45 AM | CNA / Gaspar Pericay Coll

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.

Who pays for the public deficit? Autonomous Communities vs. the Spanish Government

March 31, 2011 01:35 AM | CNA / Gaspar Pericay Coll

The Spanish Government demands an additional budget reduction of 3.2 billion euros to Catalonia, while the Catalan Government claims 3.3 billion owed by the Spanish State. Catalan parties have accused Prime Minister Zapatero of reducing his government’s deficit by increasing that of the autonomous communities. The Spanish Government wants to force Autonomous Communities to pay for the deficit by limiting it through specific laws.

The PP or the PSOE will only have CiU’s support if a new regional fiscal redistribution model is agreed, affirms Mas

March 29, 2011 12:09 AM | CNA / Gaspar Pericay Coll

The President of the Catalan Government Artur Mas announced in Madrid that in 2012, if the People’s Party (PP) or the Socialist Party (PSOE) want CiU’s support to form a new Spanish Government, Catalonia needs more money and greater control over its own finances. Mas made these comments the same day his Government agreed a 400 million euros loan.

The Spanish Government will pay for the train tickets price reduction in the end

March 9, 2011 09:21 PM | CNA

After the Spanish Governments announcement to reduce the price of local train tickets by 5% with the aim of fostering public transportation to save fuel, the Catalan Government, which manages the service in Catalonia, quantified in 26 million euros its loss in 1 year. Therefore, the Catalan Executive refused to pay for the measure. The Spanish Government will pay 6.75 million euros for 3 months of the measure.

The Catalan President rejects raising taxes and states that a 10% budget cut is enough

February 11, 2011 11:02 PM | CNA / Pere Francesch / Gaspar Pericay Coll

Artur Mas, the President of the Catalan Government answered the Spanish Vice President for Economy, who yesterday suggested that he should raise taxes. He also wants to stop the debate about which percentage of the public expenditure should be cut, after the insistence from Madrid to go beyond the 10%. The Advisory Council for the Economic Recovery met today for the first time. Mas also announced a Catalan summit on economic recovery scheduled for the 25th of March.

The Catalan Parliament allows the Catalan Government to issue new debt

February 9, 2011 10:34 PM | CNA / Pere Francesch / Gaspar Pericay Coll

The Catalan Government’s initiative received the support of its own group (CiU) as well as votes from the opposition: the Catalan Socialist Party (PSC), the Catalan People’s Party (PPC) and the Left-Wing Catalan Independence Party (ERC). The Catalan Minister for Economy Andreu Mas-Colell explained the details of the legal initiative that was passed via an urgency procedure. The initial amount will be of 2,613 million euros.

The Catalan Government rejects accusations of privileges and states that it will need 11,000 million euros in 2011

February 8, 2011 11:22 PM | CNA / Gaspar Pericay Coll

After yesterday’s meeting with Spanish Prime Minister Zapatero and the Catalan President, nine Autonomous Communities are protesting and accusing Zapatero of giving privileges to Catalonia. The Catalan Government rejects these accusations recalling that all the discussed transfers were pending issues that had already been agreed on. The new debt will be used to re-finance previous debt and reduce the deficit. This evening, the Spanish Ministry of Economy clarified that Catalonia’s authorisation will be applicable to all the Communities with an approved viability plan.