catalan infrastructure

Study claims Spain failed to invest €8bn of budgeted total, which would have created 111,500 jobs

The main Catalan airport broke another of its own records by serving 4,257,534 passengers last month, which is its best July ever and a 5.7% increase on July 2014 data, according to information released on Wednesday by the Spanish Airport Authority (AENA). Looking at the cumulative passenger figures, Barcelona El Prat has hosted 22,321,477 travellers in the first 7 months of the year, a 5% growth on the same period of 2014. In the last few years, the airport has increased its passenger figures significantly while increasing its number of short- and medium-haul routes, as well as its intercontinental destinations. Indeed, the number of intercontinental passengers in July has seen a 19.3% growth compared to the same month of 2014. The number of passengers on intra-European Union flights increased by 9.7% in the same period, and domestic flight passengers grew by 5.1%. The only negative figure was the decrease in the number of travellers on European but non-EU flights, which decreased by 3% due to the drop-off in Russian tourism.

The number of passengers going through Catalonia’s main airport grew by 6.7% in 2014 compared to 2013. In total, some 37,559,044 people travelled through Barcelona El Prat Airport, the first time this has broken the 37 million mark. The number of flights also increased, by 2.7%, with 283,850 involving the Catalan capital’s main airport. Furthermore, the amount of transported goods increased by 2.4%, with more than 102,000 tonnes of cargo. The type of passenger that registered the highest increase was travellers from within the European Union, which grew by 10.5% in 2014. All the markets registered positive figures except European flights from outside the EU and the Schengen Area, due to a drop in Russian tourists. The Asian market grew by 18.4% and those of the Middle East and Africa by 14.8% and 13.8% respectively.

The Andorra-la Seu d’Urgell Airport kicked off its public and commercial activities on Thursday, and is able to host aircraft of up to 40 seats. The old La Seu d’Urgell’s airfield, in the middle of a Pyrenean valley and only 15km away from Andorra, has been updated to go beyond being a facility merely used by recreational light aircraft. From now on, small commercial airliners, charter flights and air taxis will be able to operate from this mountain airport very close to Catalonia’s and Andorra’s main ski resorts. The new facilities will be managed by the Catalan Government and Andorra, which will meet half of its operational costs. The Catalan Executive is currently negotiating with 8 companies that may be interested in flying from the airport. Furthermore, the permits needed to host flights from outside the Schengen Area are expected to be granted by the Spanish authorities during 2015.

Pimec and Foment, Catalonia’s largest employers’ associations, have expressed outrage at the Spanish Government’s budget proposal for 2015 and its planned investment in Catalonia. Both Foment, which groups the largest employers, and Pimec, who represents small and medium-sized enterprises, have criticised that the Spanish Government has allocated to Catalonia only 9.5% of Spain’s total investment, despite it contributing 19% of the country's GDP and having 16% of its population. Spokespersons for both organisations have said the shockingly low budget is at odds with Catalonia’s high productivity and represents "a missed opportunity", both for economic growth and political dialogue, considering the independence debate. According to Ramon Adell, from Foment, Catalonia "as the engine of recovery, deserves a greater investment in infrastructure."

In 2015, Catalonia will receive the lowest investment from the Spanish Government in the last 17 years, in relative terms. The Executive chaired by Mariano Rajoy will only spend 9.5% of the territorial investments in Catalonia, despite the fact that the Autonomous Community accounts for 19% of Spain's GDP and 16% of the country's population. The percentage is even lower than last year's, when Rajoy allocated 9.6% of the territorial investments to Catalonia, which leads Spain's economy. In the current political climate, when the relation between Catalonia and Spain is seriously questioned by a majority of Catalans, such figures are far from supporting the "better together" way.

According to a report published on Thursday by Barcelona's Chamber of Commerce, the Spanish Government's investment in infrastructure in Catalonia has dropped by 50% in the last 10 years, while it has been reduced by 25% throughout the rest of Spain in the same period. The President of the business association, Miquel Valls, stated that this reduction represents "a break"in the Catalan economy's growth, which could be in a better position to speed up the economic recovery. The report takes into account the executed investment made by the Spanish Government and its public companies in areas such as airports, high-speed railway or harbours. In 2006, the Spanish Parliament recognised "a historical" lack of investment in Catalonia when it approved the Catalan Statute of Autonomy and set a minimum investment percentage share to be made in Catalonia to compensate this in the next 7 years. This share was never respected.

The Catalan Government has published a report listing all the Spanish Executive’s disloyalties towards Catalonia including not respecting legislation, devolved powers and cultural aspects. The 50-page document has a chapter quantifying the costs of such disloyalty, which totals €9.375 billion, according to the Catalan Government. €5.748 billion correspond to infrastructure which has not been built; €672 million to a reduction in institutional transfers; €1.715 billion to spending increases due to the Spanish Government’s unilateral decisions; and €1.239 to revenue reductions due to similar unilateral decisions which have never been compensated. The report does not take into account the so-called fiscal deficit – the €16.5 billion that each year Catalan tax-payers transfer to the rest of Spain. The Catalan Government emphasised that there has been “a permanent disloyal activity” since 2000.

On Monday the Spanish Government presented its budget proposal for 2014. As every single year, it will only invest in Catalonia a much inferior budget share than Catalonia’s weight within Spain in GDP or population terms. In 2014, the Spanish Government is planning to spend just 9.6% of its total regional investment in Catalonia, far short of the Catalan GDP (18.9% of Spain’s total) and population (15.7%). In addition, compared to the budget forecast for 2013, the €944.42 million planned for 2014 represents a 25% annual drop, while investment throughout Spain will only be reduced by 7.2%.

According to the Catalan Government, the High-Speed Train service linking the Catalan capital with the French border has been delayed one more year, this time until the end of 2013. The reason is that work on two sections of the railway, managed by the Spanish Government, is still pending to be allocated. They are the Barcelona exit and the section through Girona; both total €33 million according to the Catalan Government. The rest is already built and the service between the northern city of Figueres and the French city of Perpignan is already in operation. However, this strategic railway is not fully completed between Figueres and Barcelona due to a long list of delays.

The Minister of Public Works, José Blanco, announces his desires for the first stage of the project, linking Valencia and Barcelona, to develop in September. The train that will connect the main Mediterranean cities with Europe by rail is a "priority", says Blanco.

Construction companies have agreed to receive loans for some 3,000 million euros to develop what the Catalan Government considers “strategic” infrastructures. The Catalan Minister for Public Works, Joaquim Nadal, announced this agreement this morning and listed some of these works.

With a 15.5% stake in the Catalan infrastructure group Abertis, the private equity group CVC will become the company?s second largest shareholder