catalonia-spain relations

Catalonia gives away between 8% and 9% of its GDP every year. The main actors in Catalan civil society got together to formally push for a new fiscal agreement with Spain, through which Catalonia would continue transferring money to poorer Spanish regions, but not at current levels. The meeting brought together the leaders of the main business-owners association and the two main trade unions, as well as intellectuals from Barcelona’s Athenaeum, business people, and politicians from every political party except those classed as Spanish nationalists. The meeting was similar to the one held 113 years ago.

In the last number of weeks, regional governments in Spain have been taking the blame for the deficit, and in the past week have done so at an international level. However, Spain’s Central Government is responsible for 63% of the country’s deficit and 75% of public debt, despite controlling less than half of public expenditure and having far greater control over revenue. Regional governments have produced less than 20% of Spain’s public debt and in 2011 were responsible for 33% of the country’s deficit, despite representing around 40% of the public expenditure total and managing the most expensive and socially-rooted policies (healthcare, education, social grants, public transportation, etc.).

The Catalan President, Artur Mas, has met with the UK Deputy Prime Minister, Nick Clegg at a summit of European Liberal leaders. He stressed that Catalonia is doing “its homework” despite the excessive and “continuous fiscal drainage” from the Spanish State, which “is unprecedented in Europe”. “European leaders must understand” Catalonia’s situation, Mas said. “We need to explain ourselves” […] “because otherwise the only image that is received abroad is distorted”. He also explained that Catalonia’s GDP is the size of Portugal’s and Finland’s, and has an export level similar to Denmark. Mas also criticised Rajoy’s recent tax increase.

The Spokesperson for the Catalan Government has said that the new Spanish Economy Minister’s proposal goes against the Constitution and Catalonia’s self-governance. The Basque Country is also against the measure announced by Luís de Guindos in an interview with the Financial Times. He said that the crisis “was an opportunity to impose hard conditions and measures” on the Autonomies; he also added that before the Autonomies pass their budget, the Spanish Government will have to approve it. The next day, the Spanish Vice President refused to go into detail on the issue but stated that every administration has to commit to the deficit objective.

The winner of the Spanish Elections, Mariano Rajoy, outlined his government programme at the parliamentary debate on his approval before being officially appointed Prime Minister. Rajoy, without revealing any details, talked about redefining public powers, reforming public administrations, homogenising welfare policies and ensuring market unity. The Centre-Right Catalan Nationalist Coalition (CiU), the Catalan Socialist Party (PSC), the Catalan Green Socialist and Communist Coalition (ICV-EUiA) and the Left-Wing Catalan Independence Party (ERC) warned Rajoy of not affecting Catalonia’s self-government with his reforms.

Both governments are currently defining their strategies and building their respective cases in preparation for a discussion on the issue in the coming months. The Spokesperson for the Catalan Government, Francesc Homs, has sent a clear message to the next Spanish Prime Minister: Catalonia will only accept a negotiation on a new fiscal model, which would reduce the financial transfers to Spain’s poorer regions. If the Spanish Government refuses to discuss about it, Catalonia will organise a citizen vote on it. Over the past few days, the People’s Party has hinted that the Catalan Government’s main claim is not a matter for discussion.

Artur Mas, the President of the Catalan Government, has announced the main austerity measures to reduce Catalonia’s public deficit and meet the 1.3% objective for 2012. Mas stressed that these measures are to be taken in order to reduce the deficit and not harm social policies. The Catalan People’s Party was satisfied with the plans, while the Left-Wing parties warned that they would harm the middle classes. The Catalan President also sent a warning to the next Spanish Prime Minister: a new “fiscal agreement” for Catalonia might be “one of the few opportunities left” to rebuild relations with the rest of Spain.

“It means that we are not wanted, we are excluded, we are ignored” stated Artur Mas, President of the Catalan Government and leader of the Centre-Right Catalan Nationalist Coalition (CiU). It was the first time he has spoken on the Constitutional amendment limiting the public deficit that has been agreed on only between the PSOE and the PP. The CiU has protested against reforming the Constitution solely on the basis of the agreement of only two parties. Members of the PP and the PSOE have been trying to convince the CiU to support what both parties had previously agreed, and PM Zapatero (from the PSOE) asked the CiU to show some “moderation”.

However, if the question is open to other options, 33% would prefer a Catalan State within a Federal Spain, 31.8% the current situation as an Autonomous Community and 25.5% want Catalonia to be an independent nation. The poll results also show that 75.5% of Catalans want the Catalan Government to raise all the taxes, while only 18.2% prefer the current system through which the Spanish Government raises the main taxes. The poll was compiled by the Catalan Polling Centre (CEO), which is managed by the Catalan Government.

The Catalan Parliament rejected a law proposal on Catalonia’s independence three days after the popular consultation process on the issue ended with a clear “yes”. This civil society voting was not an official referendum and it was not organised by public powers. It took place over the course of 18 months, and Barcelona closed the process on Sunday. 21% of the electoral census turned out (885.000 citizens) and 90% of the voters backed Catalonia’s independence from Spain. Members of the Catalan Government cast their vote, including the President.

This English writer has been living in Catalonia for the last 26 years. This week he presented his new book ‘Barcelona, Catalonia: A View from the Inside’. Tree explains the difficulties he encounters explaining Catalonia to foreigners.

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.

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.

Experts in economics and regional fiscal redistribution concluded at a conference in London that the Spanish Autonomous Communities’ expenditure like Catalonia’s is not to be blamed for the downgrading of Spanish debt. They stated that the Catalan Government can not only be “an expenditure agency” and that it needs total control over its revenues and budget.

A Spanish police trade union has complained to the government for not teaching Catalan to police agents. While money is being invested in simultaneous translation in the Senate, there is no way to help police stationed in Catalonia integrate socially, claims the police union CEP.