Ryanair’s CEO, Michael O’Leary urges the Catalan Government to pay 11,5 million euros to the airline if it wants Girona’s airport to see all its Ryanair flights back from October onwards. O’Leary says that the Irish company cancelled 28% of its routes from Girona for the Spring/Summer season due to the “lack of commitment” from the new Catalan executive.
At the end of January, the Japanese motorbike company announced its decision and this week it issued its mass layoff plan. Yamaha will concentrate all its European production in its French factory. The Catalan factory was making profit and trade unions have stressed that the decision is only based on the company’s strategy. Yamaha will keep its commercial offices in Catalonia.
The President of the European Commission José Manuel Barroso met with the President of the Catalan Government Artur Mas in Brussels. Barroso recognised the Catalan Government's efforts to reduce public deficit. Mas emphasised the importance of making Catalan an official EU language. Mas was accompanied by the Christian-Democrat Josep Antoni Duran i Lleida and the new Catalan Delegate to the European Union, Joan Prat.
With the aim of fostering vocational training in Catalonia, the Catalan Government approved a decree to modify it today. All students will have to learn foreign languages. Combining studies and a job will be easier. Programmes’ curriculum will be adapted to sector needs and student requirements.
Spain saw 2010 end with 9.24% of public deficit; 4.97% corresponds to the Spanish Government, 3.39% to the autonomous communities and 0.64% to the local administrations. According to the Spanish Government, half of the autonomous communities saw the year come to an end far away from the objective of 2.4% - Catalonia included. The Catalan Government emphasised that the Spanish Government cut down the revenues of the autonomous communities.
The Spanish Government gave eight autonomous communities the green light to issue a fixed amount of new debt in order to refinance old loans. With this, Catalonia will be able to issue new debt of 1,866 million euros. However, 1,090 million of this will be used on old healthcare payments from 2006.
“We are not a peripheral region of the Iberian Peninsular, we are Mediterranean people very committed to Europe”, stated Artur Mas, President of the Catalan Government. Mas met with all the consular corps in Barcelona, which is one of the four non-capital cities with the most consulates in the world.
The multinational clothing company Inditex has announced the expansion of its logistics centre in Tordera (North of Barcelona coast), which will create 500 direct jobs. According to the company, the centre will become the largest and most modern clothing distribution centre in Europe. Inditex CEO announced the decision after a meeting with the Catalan President.
The Spanish diplomat Juan Prat will become the next Catalan Delegate to the European Union, representing the Catalan Government’s interests in Brussels. Prat was the Spanish Ambassador to The Netherlands and used to be the Ambassador to NATO with former PM José Maria Aznar. He also served as the European Commission’s Director General for External Relations. Besides, Barroso and Mas will meet on the 3rd of March.
The low-cost airline Ryanair is cutting 28% of its routes from Girona airport and not replacing them with routes from other Catalan airpots. Although Ryanair promised to stay in Girona a few months ago, now the Irish airline company has accused the current Catalan Government of not respecting their agreement, for which it was receiving public subsidies. The Government is surprised by the decision and has reminded Ryanair of its current obligations.
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 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 figure represents approximately 40% of the Catalan Government’s deficit in 2010. Barcelona’s Chamber of Commerce maintains a growth forecast of 0.8% for the Catalan economy in 2011.
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.
The Catalan Government will be able to issue more public debt and the State will pay Catalonia 759 million euros that are pending from 2008. According to the Catalan Government, the Spanish Executive owes more than 2,100 million euros, although the figure could be larger. The Catalan President, Artur Mas, claimed this amount and the Catalan Government’s capacity to issue new debt, after having presented a viability and austerity plan a week ago. Both leaders discussed pending competence devolutions today regarding already approved legislation and agreements, but without concrete results. Prime Minister Zapatero was also very interested in this meeting as he wants to count on votes from Mas’ party in the Spanish Parliament. Mas confirmed that his party would support Zapatero’s measures to foster the economic recovery, such as the pension system reform agreement or a new framework for SMEs.