deficit

Catalan President ready to call early elections to achieve independence from Spain in 18 months

November 25, 2014 11:57 PM | ACN

The President of the Catalan Government, Artur Mas, proposed the next steps in Catalonia’s self-determination process: early elections to the Catalan Parliament and, if a single pro-independence list get an absolute majority, negotiations to reach full independence in 18 months. Such a list should be formed by independent personalities and recognised professionals, who should commit to only run once, with traditional parties adopting a secondary role. After negotiating independence and building the new state’s basic structures, a referendum to ratify the new state’s genesis and constituent elections would be called, in which traditional parties would again be running separately. Mas said he was ready to be the front-runner or to end such a list, the latter case ruling out the possibility of his being re-elected. However, he will only call early elections if parties and civil society organisations transform them into such a ‘de facto’ referendum on independence. After years of peaceful citizen mobilisations, now “it is time for the definitive vote” and the “only” way of doing it is through early elections, he said.

BBVA forecasts better growth perspectives for Catalonia and 140,000 new jobs in 2014 and 2015

November 20, 2014 11:18 PM | ACN

The Catalan economy’s indicators are posting positive figures and the research department of the BBVA bank has reviewed its growth forecast for Catalonia for the current and the next years. According to the report issued on Thursday by the BBVA, the Catalan economy will grow by 1.3% in 2014 and by 1.8% in 2015, which are higher rates than those initially predicted. On top of this, 140,000 new jobs will be created in those two years, which represents a 4.3% employment growth. In addition, it puts an end to the negative trend that destroyed 17.3% of the existing jobs between 2008 and 2013. The BBVA also praises “the very significant effort” made by the Catalan Government to reduce public deficit in the last few years, although they will not be enough to meet the strict deficit objectives for 2014 and 2015, unilaterally imposed by the Spanish Government.

Spanish Government rules out a new inter-territorial fiscal scheme, despite the current one having legally expired

November 19, 2014 10:45 PM | ACN

On Wednesday, the Spanish Finance Minister, Cirstobal Montoro, refused to start negotiating and launching a new funding scheme for the Autonomous Communities before 2016, even though the current model had to be reviewed before January 2014. The Catalan Government has been insisting on its review since 2012, since the system does not properly fund basic public services such as healthcare and education in times of economic crisis, areas which are entirely managed by the Autonomous Communities. In addition, Catalonia suffers a permanently high fiscal deficit: each year Catalan taxpayers have to give away some 8.5% of Catalonia’s annual GDP to fund services and infrastructure in poorer regions in Spain. The problem is that after such transfers, public services in the poorer parts of Spain have more money per inhabitant than the Catalan ones and basic infrastructure in Catalonia is not built. The Spanish Government has been postponing the new model, despite the territorial tensions and the self-determination demands.

Rajoy does not back Socialists' Constitutional Reform to better integrate Catalonia

November 17, 2014 10:03 PM | ACN

On Sunday the Spanish Socialist Party (PSOE) approved another solemn declaration proposing a Constitutional Reform, after it already did so in July 2013. Once again the PSOE has not detailed their proposal, but insists on building a true federal model, going beyond the current Autonomous Community system. The People's Party (PP) – which runs the Spanish Government – opposes such a reform although they "agree to talk" about it. The PSOE wants the PP to "immediately" approve the creation of a Constitutional Reform committee at the Spanish Parliament and set expert hearings to debate ideas. However, they do not want "to rush" to solve Catalonia's "urgent problem", as explained by the President of Andalusia and PSOE's Chairperson, Susana Díaz. Meanwhile, the alternative left party Podemos, which could win the next Spanish elections, has elected Pablo Iglesias as its Secretary General, who has promised a broad Constitutional Reform. Iglesias recognises Catalonia's right to self-determination but considers that the Catalan Government cannot approve a unilateral declaration of independence.

Catalan President gives Rajoy a last chance for negotiating an independence referendum

November 11, 2014 08:32 PM | ACN

The President of the Catalan Government, Artur Mas, assessed November 9's participatory process, when 81% of the 2.3 million participants voted for independence, despite the Spanish Government's obstacles and threats. On Tuesday, Mas asked the Spanish Prime Minister, Mariano Rajoy, to stop ignoring reality and start negotiating a mutually-agreed referendum on independence, like that in Scotland and Quebec. Taking into account Rajoy's attitude for the last 2 years, Mas was said to be "quite sceptical" but highlighted that Catalan representatives have always wanted a mutually-agreed vote, which is "the best" option. Mas also announced he was starting a round of talks with pro-self-determination parties – including the Socialists (PSC) – "to listen to everybody" about organising plebiscitary elections. In fact, he warned Rajoy that plebiscitary elections on independence can be called if he continues to refuse to negotiate. Besides, Mas confirmed that on Saturday that the Catalan Government's website had suffered a cyber-attack on a gigantic-scale, which was "organised by professionals".

People's Party (PP) continues to criticise November 9's participatory process and announces legal actions

November 10, 2014 08:16 PM | ACN

The day after 2.3 million citizens gave their opinion on Catalonia's independence, the reactions of Spanish and Catalan parties did not bring great surprises. The PP, which runs the Spanish Government, considered the vote "illegal" and announced potential legal actions. In addition, they stated that "a silent majority" did not vote. The Spanish and Catalan Socialist parties (PSOE and PSC) insisted on a Constitutional Reform and rejected an independence referendum. Populist party Ciutadans (C's) asked for early elections, while Spanish nationalist UPyD wanted Catalonia's autonomy to be suspended. Parties supporting self-determination praised Sunday's vote. The governing centre-right pro-Catalan State coalition CiU wants to explore negotiations, although Liberal CDC is sceptical about the results. The left-wing independence party ERC and the alternative left and radical independence CUP rejected negotiations with Madrid. The green socialist and post-communist coalition ICV-EUiA asked for a binding referendum.

Milestones in Catalonia's self-determination before 2012 massive pro-independence demonstration

November 8, 2014 09:03 PM | ACN / Gaspar Pericay Coll

On Sunday, Catalans are being called to give their opinion about independence in a participatory process, organised by the Catalan Government in cooperation with more than 40,000 volunteers and many town halls, which replaces the original consultation vote also scheduled for the 9th of November. The Spanish Government appealed against the first vote, the Constitutional Court suspended it, the Catalan Government launched an alternative process and the Spanish Government filed a new appeal, accepted by the Constitutional Court. However, this time the non-binding participatory has been maintained with a wide consensus among Catalan institutions a wide representation from the civil society. These are the three last steps of an intense self-determination process, which started with the approval and trimming of the Catalan Statute of Autonomy and was shaped by four massive demonstrations and a series of "no" and threats by the Spanish authorities. Here is a summary of the main milestones of this process before the massive pro-independence demonstration of 2012.

Catalan Government to bring 2015 budget proposal to Parliament hoping for last minute support from ERC or PSC

October 29, 2014 08:11 PM | ACN

While the alternative consultation vote on independence scheduled on the 9th of November approaches, the Catalan Government has additional priorities on its plate, starting with the approval of its budget for 2015. However, right now the governing centre-right pro-Catalan State coalition CiU does not have enough parliamentary support to approve it. Its parliamentary ally, the left-wing independence party ERC, is reluctant to back the new budget after the Catalan Government cancelled the original consultation vote. The ERC wants to start preparing the first budget of an independent state and on Tuesday it offered to extend the 2014 budget. However, the Catalan President, Artur Mas, announced on Wednesday he will bring the budget proposal to the Parliament anyway. The Catalan Socialist Party (PSC) offered itself as an ally, but Mas asked them to back the alternative consultation vote. The PSC replied that if the question is changed, "we can talk about everything".

Moody’s foresees a common pro-independence platform in early elections to be positive for Catalonia

October 21, 2014 07:43 PM | ACN

The international rating agency Moody’s analyses the current political situation in Catalonia regarding the alternative consultation vote scheduled for the 9th of November and the potential early elections. Moody’s considers that early Catalan Parliament elections are the most likely scenario, emphasising the Catalan Government’s commitment to respect the legal framework. In addition, it also considers “a common platform” with which pro-independence parties would run in the elections to be the most likely outcome. On top of this, Moody’s predicts the victory of such a common platform and that Catalonia would be in a “strong” position to negotiate a better fiscal deal within the current Constitution. However, in such scenario, Moody’s does not consider independence. In this vein, Catalonia’s credit rating is likely to improve while Spain’s would worsen.

Only 9.5% of Spanish Government's budget will be spent in Catalonia in 2015, despite Catalonia making up 19% of Spain's GDP

September 30, 2014 09:26 PM | ACN

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.

Catalan Finance Minister rejects €3.3 billion budget cut imposed by Spanish Government in 2015

September 25, 2014 09:53 PM | ACN

Andreu Mas-Colell, the Catalan Government's Minister for Finance, emphasised that he cannot implement further budget cuts without "severely deteriorating" basic public services. After Catalonia's ministerial spending having dropped by an average of 20.3% with continuous budget cuts since 2010, public spending reduction has reached its "limit", argued Mas-Colell. The Catalan Government has exclusive control over public healthcare, education and social policies, while most of its revenue depends on transfers from the the Spanish Executive, which collects the taxes paid by Catalan citizens. Once again, Mas-Colell accused the Spanish Government of "strangling" Catalonia's finances by recentralising power. He announced he will not carry out an additional €3.3 billion budget reduction in 2015 and asked Madrid to honour pending debts, modify the too-strict deficit targets and review Catalonia's funding scheme.

Left-wing independence party ERC requests to join Catalan Government to protect self-determination vote

September 16, 2014 09:37 PM | ACN

The left-wing independence party ERC asked the Catalan President to join the Government "in order to protect the [self-determination] consultation vote" scheduled on the 9th of November. The Catalan President, Artur Mas, stated that they will talk about it in the coming days to strengthen the unity around November's vote. In addition, the Catalan Socialist party (PSC) also asked Mas to talk to them if the Constitutional Court ultimately bans the consultation vote. The People's Party (PP), which runs the Spanish Government, accused Mas of promoting "a soft dictatorship" in Catalonia. The green-socialist and post-communist coalition ICV stated they want a consultation vote with "credibility". The Spanish nationalist and populist C's said that Mas' time is finished and asked for early elections. Finally, the alternative left and radical independence party CUP advocated ignoring Spain's institutions and voting on the 9th of November by any means.

Catalonia would go for early elections if November's independence vote cannot have "enough democratic guarantees"

September 15, 2014 09:45 PM | ACN

The President of the Catalan Government, Artur Mas, stated that his "full commitment" is to make sure that Catalans can vote on the 9th of November self-determination consultation "with full democratic guarantees". In his opening speech at the Catalan Parliament’s main annual debate, Mas emphasised that his will is to make use of his entire term in office, which ends in November 2016, but only "if it is possible". He hinted that early elections could be called if November's vote could not be carried out with "enough democratic guarantees". In addition, Mas stressed the Government's "unequivocal commitment" to eradicate corruption. He also underlined that the Catalan economy is starting to recover from the economic crisis, leading Spain's recovery. However, he warned of the weak situation of public finances and of Catalonia's self-government because of Madrid's recentralisation and unilateral actions.

The Catalan Government will restore public employee's full salary in 2015 after a 3-year reduction

September 9, 2014 10:07 PM | ACN

In 2015 the employees of the Catalan Government and related institutions and public companies will receive their full salary once again after having suffered a 7.5% reduction over the last 3 years. The Spokesperson for the Catalan Government and Minister for the Presidency, Francesc Homs, announced the measure on Tuesday, after the weekly Cabinet meeting. Furthermore, the Executive will also stop the 15% reduction of working hours and salary of temporary workers in the public sector. Those austerity measures were approved in the 2012 budget as a drastic way to cut public spending in order to reduce the public deficit. The Spanish Government has been unilaterally imposing strict deficit targets on the Catalan Executive while it maintained an unfair inter-territorial fiscal scheme with Catalonia and reduced its resources. In fact, the Spanish Government and most of the other Autonomous Communities did not reduce public salaries in the worst years of economic crisis, while the Catalan Government was the first one to launch the ambitious austerity plan.

Catalan President: self-determination vote will have to "always respect an existing legal framework"

September 4, 2014 09:12 PM | ACN

The President of the Catalan Government, Artur Mas, stated once again that the self-determination consultation vote will take place on the 9th of November but he also added that "things have to be done in the right way". In front of businesspeople at an event of Barcelona's Chamber of Commerce, Mas stressed that "both things have to come together", meaning voting and doing things right. He underlined that "this means always respecting an existing legal framework". After the controversies on whether the vote should take place if the Constitutional Court bans it, Mas insisted that the call will be based on Catalan legislation and that the Court might not ban it in the end. Besides, he admitted that Catalonia's "freedom" would come with some economic costs, but that those of continuing in the current situation would be much higher. Mas also said that Pujol's scandal "will not affect" him or the Catalan Government.