business association

Spain’s confederation of employer associations, CEOE, and its Catalan member, Foment del Treball – the largest business organisation in Catalonia, have rejected getting involved in the self-determination process. On Friday, the President of the Catalan Government, Artur Mas, asked employers to get involved in all of Catalonia’s three main objectives: fostering the economic recovery, maintaining social cohesion and enabling Catalonia’s self-determination. On Monday, Madrid-based CEOE and Barcelona-based Foment, representing the business establishment at Spanish and Catalan level, answered Mas: they rejected “getting involved” although on previous occasions they have lobbied against independence and against self-determination. They asked for “dialogue” between Spanish and Catalan authorities. Additionally, Foment asked for a “fiscal agreement” for Catalonia.

The President of the Catalan Government, Artur Mas, has called on employers “to work together” on 3 objectives: lifting the economy, ensuring social cohesion through Welfare State public policies and driving forward the political process on Catalonia’s future. On Friday, Mas addressed over a hundred major employers in Catalonia at the Tower Sabadell, during the presentation of the book Capitans d'indústria (which would read as ‘Captains of industry’), written by journalist Francesc Canosa and Farran. During the event, the President of Banc Sabadell, Josep Oliu, called for a “stable political environment” and “peace of mind” so that employers could “focus” all of their energy on their businesses.

Around 60 German businesspeople working in Catalonia have issued a manifesto against independence from Spain. They warn against “the dreadful consequences” that independence would bring for the Catalan economy. The manifesto signers, who work in companies that invested millions in Catalonia and in the rest of Spain, state that independence would represent the automatic expulsion from the European Union. They also add that “it is doubtful” it could still use the Euro. Furthermore, they “warn about the dangers of a nationalist fervour, which in the last century, has brought immeasurable suffering to Europe and which will neither bring anything good to Catalonia”. Besides, on the same day, the President of Spain’s main employer association, Juan Rosell, stated that independence would be “disastrous” for human relations. The Catalan Government respects their opinion but has refused to comment on the manifesto.

After a great controversy and outraged reaction from businesspeople, politicians and academics, the Spanish Government has amended its previous decision and on Tuesday evening it announced that it will publish the so-called fiscal balances. This financial instrument shows how much money the citizens and companies from a territory give to the central government and how much of this money comes back in form of funds, investments and services. Previous studies showed that Catalonia has been giving away an average of 8% of its GDP each year since 1986, which represents 6 times the entire Marshall Plan in comparable currencies. The Spanish Government was supposed to publish the fiscal balances in December but a month later it announced it would not do so since they were “used to foster Catalonia’s independence” claims. Catalan parties warned Rajoy not to alter the figures and calculation to produce the result he wishes.

The Catalan business community is deeply annoyed with the Spanish Government for not publishing transparent data on Catalonia’s fiscal contribution to the rest of Spain and therefore not recognising the fiscal deficit. The Spanish Finance Minister, Cristóbal Montoro, was supposed to issue the so-called fiscal balances last December but their publication was inexplicably delayed. Last Friday, in late January, Montoro announced the fiscal balances would no longer be calculated and published in the present form; instead, he would publish in March the “regionalised public figures” stating the costs of public services per citizen because the fiscal balances were “incomplete and incoherent”. However, on Tuesday, the Minister recognised that they were “correct” but “wrongly used” to support Catalan independence claims.

Antoni Abad, the Chairman of the Terrassa-based employer’s association Cecot, forecasts “a small growth” of Catalonia’s GDP in 2014. However, Abad also warned against “the fragility” of the current situation since economic recovery is just starting and indicators are posting positive data but still with manifold limitations. When asked about the possible consequences of the political situation in Spain, Abad insisted the Cecot members “are not afraid” of the self-determination consultation vote. He reminded Spain that consultations are “structural elements” of democratic life, adding he was hoping for “rationality” and “dialogue” to impose themselves in the political sphere. Abad also denied the words of the Spanish Minister for Home Affairs, Jorge Fernandez Diaz, stating that the independence issue had not created any “conflicts” in Catalan families.

The Spanish Prime Minister replied on Tuesday to the President of the Catalan Government’s proposal to discuss in a private meeting the question wording, date, and procedure of Catalonia’s self-determination vote. The Financial Times had also urged the Spanish Government to negotiate and make an offer to Catalans, while adding that “the ingredients” for a solution can be found in Catalonia’s question. While Mariano Rajoy answered he was open to meet with Artur Mas, he added he has nothing to negotiate on and nothing new to say. “The [Spanish] Government will not make any concession” regarding Catalonia’s self-determination. In addition, Rajoy insisted the vote “will not take place”. Furthermore, he added that Catalonia will not have a special funding scheme.

The President of the Catalan Government, Artur Mas is the most senior public figure in Catalonia, just after the King of Spain and the Spanish Prime Minister. However, at Thursday’s scheduled dinner with the main Catalan business association ‘Foment’ and the Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, a last-minute change in the protocol put Mas in second place. The Catalan President considered that “conditions had changed” and as a protest he announced he was not going to the dinner. Instead, the Catalan Minister for Business and Employment was representing him. ‘Foment’ has been ambivalent regarding Catalonia’s self-determination process, although it supports the claim for finding a negotiated way out of the current political situation by organising a legal referendum.

Catalonia’s main SME association PIMEC and the Catalan Business Circle (CCN) have criticised the regional Government of Madrid for issuing a report not sufficiently backed-up by economic data. In addition, they have accused Madrid’s Finance Minister, who presented the report, of offering a politically-biased version by saying that companies have left Catalonia due to the self-determination debate. PIMEC and CCN stated they do not have data supporting Madrid’s statement. On the contrary, they have data proving that foreign investment has not reduced. In addition, CCN accused the Spanish Government of building a “Greater Madrid” as an economic centre, at the expense of other areas such as Catalonia. PIMEC emphasised the Catalan industrial tradition and the vigour of its economy, although admitted that taxation is higher in Catalonia than in Madrid.