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An independent Catalonia would be totally viable, according to a report conducted by the research institute from the bank, Credit Suisse. In addition it would improve its ranking on the United Nation's Human Development Index (HDI) and reach the 20^th position while Spain would drop by three places and reach the 26^th position. The report claims that small countries tend to have a higher standard of living due to a number of factors, such as more efficient services, a higher chance of benefitting from globalisation and a more homogenous population. It uses these findings to predict the HDI of territories seeking independence, such as Catalonia, Scotland, Flanders and Quebec.

On Thursday, the Catalan Finance Minister, Andreu Mas-Colell, admitted that Catalonia will not be able to meet the strict 1% deficit target imposed by the Spanish Government for 2014. In fact, the Catalan Executive had previously warned on several occasions that this deficit target was not realistic, despite the great austerity efforts undertaken over the past four years. In addition, despite Spain's economic recovery of 2014 – which is led by Catalonia – and therefore the increase of taxable activity, the Spanish Government will reduce the Catalan executive's funds by €500 million this year while the deficit target becomes stricter. On Wednesday, the Catalan President, Artur Mas, already stated that, considering the austerity measures adopted since 2011, further budget cuts cannot be undertaken in 2014 without dramatically damaging basic public services such as healthcare and education. Instead of relaxing the deficit target or transferring pending funds and debts to the Catalan Government, the Spanish Finance Ministry will reduce the interest rate that the Autonomous Communities have to pay back to 1% for the loans of the Liquifidity Fund (FLA).

On Tuesday, the Spanish Finance Minister, Cristóbal Montoro, rejected to review the funding scheme of the Autonomous Communities to grant them more resources, despite the fact that the Catalan Government is under-budgeted. On Wednesday, the Spanish Finance Ministry downplayed Catalonia's fiscal deficit by issuing the so-called fiscal balances, which calculate the inter-territorial fiscal transfers, posting a significantly low Catalan contribution. According to the Spanish Government's new calculations, Catalonia gave away €8.46 billion in 2011, representing 4.35% of its GDP. The figure is significantly lower than the Catalan Government's calculations: €15.01 billion and €11.09 billion, using two complementary methodologies used by the Spanish Executive in 2008 and agreed among independent university experts.

The Catalan Government issued on Thursday its own calculation of the so-called fiscal balances with the latest data available, which is from 2011. In that year, Catalans funded services and infrastructure in the rest of Spain for €15 billion, equivalent to 7.7% of Catalonia's GDP or €2,055 per citizen, using the monetary flow formula. Using the tax-benefit method, Catalonia contributed €11.1 billion, equivalent to 5.7% of its GDP. The two methods are "complementary", as the Catalan Finance Minister, Andreu Mas-Colell stated, although the first one makes less assumptions and is closer to reality in times of economic crisis and high unemployment. "Catalonia is a net and generous contributor" to the whole of Spain, he said. In fact, the figures for 2011 confirm Catalonia's "sustained" negative "fiscal balance" for the 1986-2011 period, with an average 8.0% fiscal deficit. This has been for decades a very sensitive issue in Catalan and Spanish politics, and even more considering the self-determination debate.

The Barcelona Metro will reach El Prat Airport by the first half of 2016, perhaps even earlier, according to forecasts announced on Wednesday by the President of the Catalan Government, Artur Mas. The L9 line connecting Barcelona municipality to El Prat Airport and other cities has been under construction since 2002, and was originally anticipated to open in 2008, but the financial crisis and the state of public finances have delayed its full completion. An initial stretch of the line became operational in 2009, located at the opposite end to the airport. Once fully finished, the underground line will consist of two branches spanning across the Barcelona metropolitan area, making it the longest automatic metro line in Europe. The entire project will represent a total investment of €16 billion, €3 billion of which is for the airport connection. The test phase of the airport stretch will begin this autumn and should be completed by early 2016 or earlier.

The 2014 European parliamentary elections are likely to become a milestone for Catalan people for three main reasons, which taken together send a strong message to the international community, the EU institutions and Member State governments, including that of Spain. Firstly, political parties and civil society organisations supporting self-determination have called citizens to vote in these elections as a way to push for a referendum on independence to take place on the 9^th of November of this year. This may significantly increase turnout from the low 36.94% registered in 2009. Secondly, the two main self-determination parties are likely to be the most voted parties in Catalonia. In addition, the Left-Wing Independence Party (ERC) may go from 4^th place in the 2009 poll to 1^st place this time around. Thirdly, support for the two main parties behind the EU austerity measures that turned into drastic budget cuts in southern Europe – the People’s Party and the Socialist Party – is likely to plummet in Catalonia.

The Catalan Executive raised the alarm on Monday: the Spanish Ministry of Industry is planning to take away 1 of the 2 multiplexes run by the Catalan Public Television Broadcaster (TVC), which means reducing its number of TV channels. By halving the spectrum available for TVC – which is traditionally the leader for TV audiences in Catalonia – the Spanish Government will oblige the broadcaster to reduce its number of channels. This will decrease its audience and therefore its influence, which might also bring a reduction of advertising income and a consequent weakening of the public service. The Catalan Government sees "an undoubted" political motivation in this decision, aiming to decrease the influence of Catalan-speaking media by rendering TVC "residual".

Following an appeal from the Spanish Government, the Constitutional Court has confirmed the cautionary halt adopted in January 2013 and it has now definitively banned the Catalan Executive's drug prescription fee. The measure had been adopted to reduce pharmaceutical spending by limiting superfluous drug demand in order to reduce the overall public spending. It was one of the austerity measures adopted by the Catalan Government in 2012 to reduce public deficit, in order to meet the strict deficit targets imposed by the Spanish Executive. The measure meant that Catalans had to pay a one-euro fee for each drug prescription, with a maximum of 60 euros per year and with many exceptions for people with chronic diseases, on low incomes and pensioners. On the same day, the Constitutional Court has backed the Catalan Executive's judicial fees, also appealed by Madrid.

The Spanish Finance Minister, Cristóbal Montoro, announced on Friday that the publication of the so-called fiscal balances will be delayed until June, after he had promised to issue them by last December and by the current month of March. Montoro changed the calculation method in January, as the figures were used to support Catalonia's independence from Spain. Now, the new delay is "to improve" the report. This document shows how much money Catalan citizens and companies pay to the public authorities and how much returns to them through services, infrastructure and funds. A wide majority of the Catalan society has been complaining for decades that their contribution to finance services, infrastructure and funds in other parts of Spain is too excessive and they have asked for reducing such inter-territorial money transfers. Studies show that Catalans have been paying each year an average of 8% of Catalonia's GDP between 1986 and 2010, which represents 200% of Catalonia's total GDP.

Barcelona’s City Council has achieved a cumulative budget surplus of €23.5 million for the last few years, after posting a budget surplus of €139.3 million in 2013. In a press conference on Wednesday, the Deputy Mayor for Economy, Business and Employment, Sònia Recasens also announced that the city had eventually executed 97.55%, (€2.25 billion) of its planned expenditure. Such a figure is higher than the average execution ratio for 2009-2013. The execution ratio for investments amounts to 94% (€356 million) and is also significantly higher than in 2009-2013. In addition, debt levels represent 46.7% of the annual ordinary revenue. Furthermore, the City Council paid its providers in 29.2 days on average. Thanks to these figures, the City Council will make available 1,000 new social housing units in Barcelona.

Catalonia is the only Autonomous Community in Spain to have registered a decrease in wages, as it was also the only one to have public employees' Christmas payment – equivalent to a month’s salary – entirely eliminated in 2013, according to the latest Quarterly Labour Cost Survey issued by the Spanish Government. Hence, while Spanish wages have increased by 2.1% in 2013, the wages of Catalan employees have continued on a downward trend continued o, falling by 0.7% at the end of December 2013 compared to the last quarter of 2012. The average salary in Catalonia stood at €2,133 per month, returning to 2009 levels, when it had amounted to €2,119. Labour costs, which group the employee salary and social costs assumed by companies, have also fallen by 0.4% in annual terms in Catalonia whereas they were up by 2.1% in Spain.

The Government of Extremadura, a region bordering Portugal, presented a study comparing its contributions to the rest of Spain with those of the other Autonomous Communities, particularly focusing on Catalonia. The main thrust of the report was that Catalonia receives the highest amount of money from the Spanish Government, which goes against absolutely all the previous studies that have established that Catalan taxes fund services, investments and infrastructure in the rest of Spain. The Catalan Finance Minister, Andreu Mas-Colell, characterised “the political document” presented by Extremadura’s Government as a “complete nonsense”. Mas-Colell, who was Professor of Economics at Berkley and Harvard from 1972 to 1995, said that the report lacked rigour and was not a technical work. The next day Extremadura’s President, José Antonio Monago, stated that Catalonia is “a privileged territory” and questioned whether it could repay its debt.

The Catalan Government has approved 3 new environmental taxes on the air pollution emissions of commercial flights, industrial gas and particle emission, and the nuclear production of electric energy. €50 million are expected to be raised per year once the law will be enforced, which is scheduled for mid-year. The Spokesperson for the Catalan Government, Francesc Homs, has admitted that flights at Barcelona’s El Prat Airport would likely be affected. However, he ensured that none of these 3 new taxes would have a negative impact on the consumers. The law specifies that the tax cannot affect pricing, neither for plane tickets nor for electricity, pointed out Homs. He then put in contrast the €98 million fees an airline can have to pay to the Spanish Airport Authority (AENA) with the €1 million in taxes that may be levied by the Catalan Government.

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.

Andreu Mas-Colell, Catalan Finance Minister, accused the Spanish Government of aiming “to undo” the system of Autonomous Communities. He also expressed his fear that the so-called ‘coffee for all’ system [the generalised devolution of the early 1980s that shaped the 17 Autonomous Communities] will become a ‘decaffeinated coffee’ system, implemented ‘in depth’. With this play on words, Mas-Colell was referring to a deep recentralisation and homogenisation process. Furthermore, the former professor of Economics at Harvard and Berkley, denounced “the budget treatment” that the Spanish Government gives to Catalonia as “totally unfair”. In this vein, he proposed that an international and independent body should calculate the fiscal balances between Catalonia and the Spanish State.