catalan government

PM Zapatero today proposed an expenditure limit for the Autonomous Communities before the Spanish Parliament . The Spokesperson for the Catalan Executive considers it an attack to self-governance and fiscal autonomy. In addition, he stressed that the Catalan Government is the only administration in Spain, at all levels, that has cut its expenditure by 10% in one year. He also asked the Spanish Government to make its own adjustments and pay what it legally owes to the Communities, and to Catalonia in particular.

The International Monetary Fund wants the Spanish Government to “strengthen” the labour market reform, not give up on spending cuts and restructure the financial system. The same day, the Bank of Spain's Governor, Miguel Angel Fernández Ordóñez asked the Spanish Minister for Economy to be “stricter” on the Autonomous Community government’s deficit reduction. The Catalan Minister for Finance said on several occasions that Catalonia would meet the deficit objective for 2011 if the Spanish Government showed some institutional loyalty and paid the money it legally owes to Catalonia.

Public university undergraduate students will have to pay between 64 and 100 euros more per year. Those repeating once will pay the same amount, but those taking a course for the third time will pay 60% more. The measure would bring in 20 million euros in one year. 25% of the revenues from the fee increase will be reinvested via scholarships, the first that will be aimed at university students managed by the Catalan Government.

The Autonomous Community public debt has increased 26% in the last 12 months and represents now the historic maximum of 11.4% of Spain’s GDP. Spain’s total public debt reached 63.6% of its GDP and totals 679.8 billion euros. The Catalan Government’s debt has reached 34.3 billion euros, 17.2% of Catalonia’s GDP. It raised 33% in the last 12 months, as the Catalan Government’s public deficit was 3.86% in 2010.

The European Commission also recognised "a different effort" to the rest of Spain’s Autonomous Communities. Brussels said so when on Tuesday it asked Spain “to strictly control” the public “deficit and debt of regional governments”, the day after Moody’s rating agency warned about Catalonia’s expected deficit for 2011. The Spanish Government took note from this particular recommendation but not the other made by Brussels, which included increasing energy taxes and VAT. The Catalan Government criticised Moody’s for “creating alarm” with assessments that do not take into account the whole situation. In addition, it denounced how the Spanish Government has reduced its own deficit by transferring it to the Autonomous Communities.

After the presentation of the Catalan Government’s budget proposal at the Catalan Parliament, opposition parties criticised its content and the lack of debate on the subject. The Catalan Government needs support from opposition MPs or at least their abstention to approve the budget, which foresees a 2.66% deficit for 2011. The Spanish Vice President for Economy Elena Salgado insists that the mechanisms of deficit control “will be strictly implemented”.

The Catalan Finance Minister presented the Catalan Government’s budget for 2011, which totals 39,354 million euros. For the first time, the budget will see a decrease in comparison to the previous year. Public expenditure is reduced by 10%, brought to 2007 levels. The public deficit is also reduced, but only to 2.66%. The Catalan Minister states that if the Spanish Government wants Catalonia to reach the 1.3% objective, it needs to show institutional loyalty and transfer the money due for 2011 instead of delaying it and calculating smaller amounts.

In 2010, Catalonia exceeded the pollution limits for nitrogen oxide defined by the European Union, but not for the polluting particles. The large number of diesel vehicles would be one of the main causes. An extension until 2015 has been asked by the Catalan Government.

The good results at the municipal elections give the Centre-Right Catalan Nationalist Coalition ‘Convergència i Unió’ (CiU), running the Government, the support of citizens to carry on with the austerity measures and its plan to reduce public expenditure by 10%. After the Government’s approval, the budget will be discussed at the Catalan Parliament and approved by the end of July. CiU does not want to mix budget negotiations at the Parliament with local agreements after the municipal elections.

The Catalan Government will be able to keep the number of new teacher positions this year, after the Spanish Government withdrew its complaint. However, the Spokesperson for the Catalan Government insisted that the Spanish Executive continues with “its offensive against Catalonia”, as among other issues it still refuses to pay 1.45 billion euros from the Competitiveness Fund. In addition, only 0.8% of the Spanish Government’s approved public works in 2011 are in Catalonia.

Two earthquakes of 5.1 and 4.5 Richter degrees hit the Murcia Region (South-East Spain) on Wednesday afternoon causing at least 9 deaths and injuring 300 people. 30,000 people spent the night in the streets, fearing further shocks. All the Catalan parties suspended their electoral campaigning for 24 hours and a minute’s silence spread across Catalonia.

April numbers have broken a three-month continuous trend of unemployment increases. In total there were 601,541 people registered as unemployed at the end of April.

The Catalan Ministry of Economy and Knowledge has released its macroeconomic outlook for 2011. At the end of the current year, the unemployment rate will be 18%, up from 2010.

The President of the Catalan Government, Artur Mas, presented a road-map with 474 objectives to be reached during his term in office. The Catalan Government’s plan faces three main crises: the economic slowdown, the relationship between Catalonia and Spain, and citizen trust in the democratic institutions. The strategic plan is organised along eight main axes, with economic recovery being the first priority.

The Catalan Minister for Finance Andreu Mas-Colell has unveiled the main guidelines for the budget proposal for 2011, which he said are shaped with “austerity, seriousness and credibility”. Public expenditure will be cut by 10%, although he warns that it is impossible to meet the 1.3% deficit objective, as it is a transition year and some revenues have not been paid. However, he insisted that the 2012, 2013 and 2014 objectives will be met. The Spanish Government warned that not meeting the deficit objective for 2011 is not an option. Mas-Colell also explained he has not included, not even as a pending revenue, the 1.45 billion euros for the Competitiveness Fund.